Mexco Energy Corporation Announces Additional Development Of Properties
MIDLAND, Texas, Sept. 20, 2013
MIDLAND, Texas, Sept. 20, 2013 /PRNewswire/ --Mexco Energy Corporation (NYSE
MKT: MXC) today announced developments regarding certain oil and gas
properties in New Mexico and Texas.
Mexco Energy Corporation ("Mexco") has entered into an agreement with Concho
Resources, Inc. ("Concho") to develop the Bone Spring formation using
horizontal drilling and multi-stage fracture stimulation on acreage in
southwestern Lea County, New Mexico. The first two horizontal wells of twelve
prospective wells will target the Avalon shale portion of the Bone Spring
zone. To date, 67 wells have been completed in the Avalon shale in this area
with numerous other wells in the process of drilling or completing. Concho
will pay 62.5% of the cost to drill and complete the two initial wells in
order to earn 50% working interest (37.5% net revenue interest). The joint
venture of which Mexco is a member will pay 37.5% of the cost to drill and
complete two initial wells and will retain 50% working interest and 50% net
revenue interest in the wellbores. Mexco's working interest in this
development is approximately 0.56% (0.42% net revenue interest).
Mexco is currently participating in other horizontal well developments on
acreage in the Bone Springs formation of Lea County, New Mexico. In June
2013, Cimarex Energy Co. ("Cimarex") announced plans to drill a third well on
a 160 acre unit in this formation. Mexco's working interest in the Cimarex
prospect is .0469% (.0352% net revenue interest). In August 2013, Concho
began drilling a second well on a 640 acre unit. Mexco's working interest in
this Concho prospect is .1875% (.148% net revenue interest).
Overall, Mexco has various interests in 18 horizontal wells and 138 vertical
wells in Lea County, New Mexico. Mexco's net revenue interests in these wells
range from .00047% to 6.61%. There is further potential for horizontal
development on leasehold acreage on certain of the leases on which these wells
Mexco also is participating in the continued development of two units
containing approximately 1,000 acres in Winkler County, Texas. The operator,
OGX Operating, LLC, is currently drilling two horizontal wells in the Penn
Detrital formation of the F A Hogg field. Two other horizontal wells on this
acreage are currently producing from this formation. Mexco's working interest
in all four wells is .4167% (.3125% net revenue interest).
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, 2013. Mexco Energy Corporation disclaims any intention or
obligation to revise any forward-looking statements.
SOURCE Mexco Energy Corporation
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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