Mexco Energy Corporation Announces Acquisitions And Additional Development Of
MIDLAND, Texas, March 25, 2014
MIDLAND, Texas, March 25, 2014 /PRNewswire/ --Mexco Energy Corporation (NYSE
MKT:MXC) ("Mexco" or "the Company") today announced the acquisition of
additional working interests in a joint venture. The Company's working
interest in this development of seven horizontal wells in the Wolfcamp
formation of Reagan County, Texas was increased from 0.57% (0.49% net revenue
interest) to 1.4% (1.2% net revenue interest) increasing the estimated
drilling costs from $350,000 to approximately $850,000. These wells are to be
drilled during 2014 using horizontal pad drilling and fifty stage zipper frac
The Company also announced plans to participate in the drilling of a
horizontal development well in the Wolfcamp formation of the Lin Field of
Reagan County, Texas. This well, operated by EOG Resources, Inc. is the
fourth well on a 524 acre unit. Mexco's working interests in drilling and
completing this well at a cost of approximately $51,000 is .8% (.61% net
Mexco acquired long-lived non-operated producing properties consisting of
approximately 50 oil wells operated by Cross Timbers Energy, LLC, a joint
venture of Exxon Mobil Corporation and MorningStar Partners, LP, in Hockley
County, Texas and 15 oil wells operated by Four C Oil & Gas Corporation in
Pecos County, Texas. The purchase price of $200,000 was funded from the
Company's $4.9 million bank credit facility. This purchase, effective March
1, 2014, includes working interests of, respectively, .42% and .67% (net
revenue interests of .31% and .59%).
Mexco purchased for $57,000, an interest in 320 gross acres (15 net mineral
acres) subject to a 3/16ths royalty lease in the Bakken Shale formation of
Billings County, North Dakota. Mexco funded this purchase primarily from
working capital and its bank credit facility. This acreage currently contains
one (1) newly drilled horizontal well operated by Continental Resources, Inc.,
the results of which have not yet been announced. All of this acreage is free
of expenses to Mexco for drilling, development and operations.
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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