Mexco Energy Corporation Reports Financial Results for Second Quarter and Development of Properties
November 05 2020 - 5:30PM
Mexco Energy Corporation (NYSE American: MXC) today reported
operating revenues, in the second quarter of fiscal 2021 of
$636,042, an increase of 2% from $625,884 for the second quarter of
fiscal 2020. This is the result of a 30% increase in oil
production, 22% increase in gas production and a 9% increase in gas
price partially offset by a 27% decrease in oil price. Mexco
recorded a net loss of $41,970 for the quarter ending September 30,
2020, the Company’s second quarter of fiscal 2021 compared to a net
loss of $82,787 for the quarter ending September 30, 2019.
The average sales price of oil and natural gas
respectively for the quarter ending September 30, 2020 was $38.42
per barrel compared to $52.61 per barrel and $1.41 per Mcf compared
to $1.30 per Mcf, respectively for the quarter ending September 30,
2019.
For the six months ended September 30, 2020, the
Company reported a net loss of $341,640 compared to a net loss of
$136,973 for the six months ended September 30, 2019. Operating
revenues were $1,006,498 for the six months ended September 30,
2020, a 24% decrease from $1,325,475 for the September 30, 2019 six
month period resulting primarily from problems created by the
COVID-19 pandemic.
The Company plans to participate in the drilling
and completion of 20 horizontal wells for the fiscal year ending
March 31, 2021 at an estimated aggregate cost of approximately
$1,200,000 of which $538,000 already has been expended.
During the first six months of fiscal 2021,
Mexco participated in the drilling and completion of two horizontal
wells in the Wolfcamp formation of the Delaware Basin located in
the western portion of the Permian Basin in Lea County, New Mexico
with aggregate costs of approximately $233,000. These wells were
completed in September 2020 with initial average production rates
of 1,224 barrels of oil, 4,881 barrels of water and 3,422,000 cubic
feet of gas per day, or 1,794 barrels of oil equivalent per well
per day. Mexco’s working interest in these wells is 1.2%.
Currently Mexco is participating in 12 oil and
gas wells that are now being drilled and/or completed.
The President and Chief Financial Officer of the
Company said, “Mexco’s increase in oil and gas production in the
current quarter resulted from completions of 13 oil and gas wells
out of 22 wells drilled and uncompleted prior to the fiscal year
end. Also, Mexco participated in drilling and completing two wells
in the Delaware Basin this same quarter.”
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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