MEXCO ENERGY CORPORATION REPORTS FINANCIAL RESULTS FOR FISCAL 2020
June 26 2020 - 7:05PM
Mexco Energy Corporation (NYSE American: MXC) reported results on
its Annual Report, Form 10-K to the Securities and Exchange
Commission (“SEC”) for the fiscal year ended March 31, 2020.
Operating revenues in fiscal 2020 were
$2,738,540, an increase of 2% when compared to fiscal 2019
operating revenues of $2,686,873. This is the result of a 25%
increase in oil production partially offset by a 4% decrease in oil
price and a 43% decrease in natural gas price. Approximately 27% of
the fiscal 2020 revenues were produced from royalties free of
expense to Mexco.
The Company reported a net loss of $99,478 or
($0.05) per diluted share, for fiscal year 2020, compared to a net
loss of $12,946, or ($0.01) per diluted share, for fiscal 2019.
In addition to 86 gross wells (.09 net wells)
drilled by other operators on Mexco’s royalty interests, the
Company participated in the drilling and completion of 58 wells
consisting of 50 horizontal wells and 8 vertical wells at a cost of
approximately $1,455,000 for the fiscal year ending March 31, 2020.
Of these horizontal wells, 49 are in the Delaware Basin located in
the western portion of the Permian Basin in Eddy and Lea Counties,
New Mexico and one is located in the Midland Basin in Reagan
County, Texas. The operators of these wells include Concho
Resources, Inc., Marathon Oil Company, Mewbourne Oil Company, and
others.
At March 31, 2020, the Company owned interests
in 13 drilled but uncompleted wells in the Delaware Basin at an
approximate aggregate drilling cost of $200,000. The Company
anticipates aggregate completion costs of approximately $300,000
for these wells. Such completions will be made as economic
conditions are appropriate.
The Company’s estimated present value of proved
reserves at March 31, 2020 was approximately $22 million based on
estimated future net revenues discounted at 10% per annum, pricing
and other assumptions set forth in “Item2 – Properties” of Form
10-K. The Company’s estimated proved oil reserves at March 31, 2020
decreased 3% to 1.007 million barrels of oil and natural gas
liquids, and natural gas reserves decreased 10% to 4.850 billion
cubic feet over the prior fiscal year. This reduction in reserves
was primarily the result of the reserves written off due to the
five-year limitation. They are primarily royalty interests in the
Barnett Shale in Tarrant County, Texas and the Goldsmith field in
Ector County, Texas, both of which are on leases held by production
and still in place to be developed by others in the future. There
were also reserves written off for a working interest in the
Fuhrman Mascho Field in Andrews County, Texas due to market
conditions. These properties are also on a lease held by production
and still in place to be developed in the future. For fiscal 2020,
oil constituted approximately 55% of the Company’s total proved
reserves and approximately 84% of the Company’s revenues.
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 primarily in the Permian
Basin. 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, 2020. 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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