About Mexco Energy

Mexco Energy Corporation, an independent oil and gas company, engages in the acquisition, exploration, development and production of crude oil and natural gas properties located in the United States. The company’s total estimated proved reserves as of March 31, 2022, were approximately 1.616 million barrels of oil equivalent (MMBOE) of which 50% was oil and natural gas liquids and 50% was natural gas. The company’s properties consist primarily of oil and gas wells and its ownership in leasehold acreage, both developed and undeveloped. As of March 31, 2022, the company had interests in approximately 6,300 gross (18.5 net) producing oil and gas wells and owned leasehold mineral, royalty and other interests in approximately 539,000 gross (2,970 net) acres. The company engages in acquiring and developing oil and gas properties, and the exploration for and production of natural gas, crude oil, condensate and natural gas liquids (NGLs) within the United States. While the company owns oil and gas properties in other states, the majority of its activities are centered in West Texas and Southeastern New Mexico. The company also owns producing properties and undeveloped acreage in fourteen states. The company acquires interests in producing and non-producing oil and gas leases from landowners and leaseholders in areas considered favorable for oil and gas exploration, development and production. In addition, the company may acquire oil and gas interests by joining in oil and gas drilling prospects generated by third parties. All of the company’s oil and gas interests are operated by others. Oil and Gas Operations As of March 31, 2022, oil constituted approximately 72% of the company’s oil and gas revenues and approximately 50% of its total proved reserves volumes for fiscal 2022. Revenues from oil and gas royalty interests accounted for approximately 23% of the company’s oil and gas revenues for the year ended March 31, 2022 (fiscal 2022). There are two primary areas in which the company is focused on the Delaware Basin located in the Western portion of the Permian Basin, including Lea and Eddy counties, New Mexico and Reeves and Loving Counties, Texas; and the Midland Basin located in the Eastern portion of the Permian Basin, including Reagan, Upton, Midland, Martin, Howard and Glasscock counties, Texas. The Permian Basin is one of the oldest and most prolific producing basins in North America, which has been a significant source of oil production. The Permian Basin is known to have a number of zones of oil and natural gas bearing rock throughout. The Delaware Basin properties, encompassing 30,984 gross acres, 206 net acres, 555 gross producing wells and 3 net wells as of March 31, 2022. The Midland Basin properties, encompassing 99,160 gross acres, 266 net acres, 992 gross producing wells and 2 net wells account for approximately 11% of the company’s discounted future net cash flows from proved reserves as of March 31, 2022. Gomez Gas Field properties, encompassing 13,058 gross acres, 72 net acres, 27 gross wells and .13 net wells in Pecos County, Texas, account for approximately 11% of the company’s discounted future net cash flows from proved reserves as of March 31, 2022. All of these properties, except for one, are royalty interests. The company owns partial interests in approximately 6,300 producing wells all of which are located within the United States in the states of Texas, New Mexico, Oklahoma, Louisiana, Alabama, Mississippi, Arkansas, Wyoming, Kansas, Colorado, Montana, Virginia, North Dakota, and Ohio. History The company, a Colorado corporation, was founded in 1972. It was incorporated in 1972. The company was formerly known as Miller Oil Company and changed its name to Mexco Energy Corporation in 1980.