Mexco Energy Corporation Reports Results for Second Quarter and Property Development
November 09 2018 - 9:43AM
Mexco Energy Corporation (NYSE American: MXC) today reported net
income of $28,407 for the quarter ending September 30, 2018, the
Company’s second quarter of fiscal 2019. This compares to a net
loss of $162,438 for the quarter ending September 30, 2017.
Operating revenues in the second quarter of
fiscal 2019 were $714,508, a 15% increase from $619,088 for the
second quarter of fiscal 2018.
Revenues from oil sales, accounting for
approximately 71% of the Company’s oil and gas revenues, increased
29.6% during the second quarter of fiscal 2019 as compared to the
second quarter of fiscal 2018. Revenues from gas sales, accounting
for approximately 29% of the Company’s total oil and gas revenues,
decreased 9.8% during the second quarter of fiscal 2019 as compared
to the second quarter of fiscal 2018. The average sales price of
oil and natural gas respectively for the quarter ending September
30, 2018 was $58.31 per barrel and $2.80 per Mcf compared to $45.10
per barrel and $2.72 per Mcf for the quarter ending September 30,
2017.
For the six months ended September 30, 2018, the
Company reported net income of $36,451 compared to a net loss of
$484,722 for the six months ended September 30, 2017. Operating
revenues increased 14% to $1,463,519 for the six months ended
September 30, 2018 from $1,286,772 for the same period of fiscal
2018.
During the first six months of fiscal 2019,
Mexco participated with various percentage interests in the
drilling of 32 horizontal wells with aggregate costs of
approximately $540,000. Of these wells, 26 are in the Delaware
Basin located in the western portion of the Permian Basin in Eddy
and Lea Counties, New Mexico and six are located in Grady County,
Oklahoma.
The first five of these wells in Lea County, New
Mexico have been completed with initial average production rates
per well of 1,552 barrels of oil, 2,075 barrels of water and
2,067,000 cubic feet of gas per day, or 1,896 barrels of oil
equivalent per day per well. Mexco’s working interest in these
wells is approximately 0.6%. These initial rates of production are
not necessarily indicative of actual future rates of
production.
The Company currently expects to participate in
the drilling and completion of approximately 50 horizontal wells at
an estimated aggregate cost of approximately $1,300,000 for the
fiscal year ended March 31, 2019. The operators of these wells
include Concho Resources, Inc., Marathon Oil Company, Mewbourne Oil
Company, XTO Energy, Inc. and others. To date for the first six
months, 50 wells have been drilled by other operators on Mexco’s
various fractional royalty interests free of expense to Mexco.
Mexco Energy Corporation, a Colorado
corporation, is an independent oil and gas company located in
Midland, Texas engaged in the acquisition, exploration and
development of oil and gas properties. For more information on
Mexco Energy Corporation, go to www.mexcoenergy.com.
In accordance with the Safe Harbor provisions of
the Private Securities Litigation Reform Act of 1995, Mexco Energy
Corporation cautions that statements in this press release which
are forward-looking and which provide other than historical
information involve risks and uncertainties that may impact the
Company's actual results of operations. These risks include, but
are not limited to, production variance from expectations,
volatility of oil and gas prices, the need to develop and replace
reserves, exploration risks, uncertainties about estimates of
reserves, competition, government regulation, and mechanical and
other inherit risks associated with oil and gas production. A
discussion of these and other factors, including risks and
uncertainties, is set forth in the Company's Form 10-K for the
fiscal year ended March 31, 2018. Mexco Energy Corporation
disclaims any intention or obligation to revise any forward-looking
statements.
For additional information, please contact: Nicholas C. Taylor,
Chairman and Chief Executive Officer or Tammy L. McComic, President
and Chief Financial Officer, both of Mexco Energy Corporation,
(432) 682-1119.
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