SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
to Section 13 or 15(d) of the
Securities Exchange Act of 1934.
Date of Report: August 10, 2018
(Date of earliest event reported)
Mexco Energy Corporation
(Exact name of registrant as specified in its charter)
(State or other jurisdiction
415 W. Wall
|(Address of principal executive offices)||(Zip Code)|
Registrant’s telephone number, including area code: 432-682-1119
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
|[ ]||Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)|
|[ ]||Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)|
|[ ]||Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.13e-4(c))|
|[ ]||Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))|
Item 8.01 Other Events
On August 10, 2018, Mexco Energy Corporation issued a news release to announce its financial results for the quarter ended June 30, 2018 and further development of properties.
Copy of the news release is filed as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
|99.1||News release dated August 10, 2018.|
Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|MEXCO ENERGY CORPORATION|
|Dated: August 10, 2018||By:||/s/ Tammy McComic|
|President and Chief Financial Officer|
August 10, 2018
FOR IMMEDIATE RELEASE
Mexco Energy Corporation Reports Financial Results for First Quarter and Further Development of Properties
MIDLAND, TX – 08/10/2018 – Mexco Energy Corporation (NYSE American: MXC) today reported net income of $14,420 for the quarter ending June 30, 2018, the Company’s first quarter of fiscal 2019. This compares to a net loss of $295,552 for the quarter ending June 30, 2017.
Operating revenues in the first quarter of fiscal 2019 were $749,011, an increase of 12% from $667,684 for the first quarter of fiscal 2018. This is the result of a 36% increase in oil prices partially offset by an 11% decrease in gas prices, a 1% decrease in oil production and an 18% decrease in gas production.
The average sales price of oil and natural gas respectively for the quarter ending June 30, 2018 was $60.73 per barrel and $2.25 per Mcf compared to $44.57 per barrel and $2.54 per Mcf for the quarter ending June 30, 2017.
Mexco’s bank indebtedness as of June 30, 2018 is $500,000, resulting in a debt to equity ratio of 6%.
In addition to an indeterminate number of wells to be drilled by other operators on Mexco’s royalty interests, 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.
During the first quarter of fiscal 2019, Mexco participated with various percentage interests in the drilling of the first 8 of these horizontal wells in the Delaware Basin located in the western portion of the Permian Basin in Eddy and Lea Counties, New Mexico with aggregate costs of approximately $142,000. Subsequently, in July 2018, Mexco expended an additional $192,600 for the completion of five of these wells.
The president of the Company, Tammy McComic, said, “We have excellent opportunities on our substantial inventory of development acreage in the Delaware Basin.”
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 inherent 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.