MEXCO ENERGY CORP - FORM 8-K - EX-99.1 - August 10, 2015

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EXHIBIT 99.1

August 10, 2015

FOR IMMEDIATE RELEASE

Mexco Energy Corporation Reports Results for First Quarter and Property Developments

MIDLAND, TEXAS, 08/10/2015 – Mexco Energy Corporation (NYSE MKT: MXC) today reported net loss of $324,366 for the quarter ending June 30, 2015, the Company’s first quarter of fiscal 2016.  This compares to net income of $19,054 for the quarter ending June 30, 2014.

Operating revenues in the first quarter of fiscal 2016 were $702,609, a 31% decrease from $1,017,834 for the first quarter of fiscal 2015.

The average sales price of oil and natural gas respectively for the quarter ending June 30, 2015 was $51.97 per barrel and $2.15 per Mcf compared to $93.30 per barrel and $4.29 per Mcf for the quarter ending June 30, 2014.

Oil and gas production increased 37.5% and 11.3%, respectively, during the first quarter of fiscal 2016 as compared to the first quarter of fiscal 2015.

Mexco participated in the drilling and completion of a horizontal well operated by XTO Energy, Inc., a subsidiary of Exxon Mobil Corporation in the Third Bone Spring formation in Lea County, New Mexico which flowed in a twenty-four hour test at the rate of 541 barrels of oil and 466,000 cubic feet of gas.  Mexco owns a 2.78% working interest (1.95% net revenue interest).

Mexco also is participating in a currently drilling horizontal well located in Lea County, New Mexico in the Third Bone Springs formation.  This well also is operated by XTO and Mexco’s interest is 2.78% (1.95% net revenue interest).

Mexco participated in a horizontal well operated by Concho Resources, Inc. located in Lea County, New Mexico and flowing at the rate of 663 barrels of oil and 634,000 cubic feet of natural gas per day.  This well is located in Red Hills (Avalon) Field.  Mexco’s working interest in this well is approximately .59% (.29% net revenue interest).  A second well currently is being drilled by Concho as operator in the Berry (Third Bone Spring) Field.  Mexco owns a .15% working interest (.11% approximate net revenue interest) in this well.

These initial rates of production are not necessarily indicative of actual future rates of production.

Mexco recently executed a term lease assignment to an independent operator for a period of six months for payment to Mexco of $112,000.  Such assignment covers 320 acres located in the northeast corner of Upton County, Texas south of the Midland County and west of the Reagan County lines.  This acreage covers an undivided one-half interest in a 640 acre tract the other half of which is held by Apache Corporation.  Also the assignee has been granted the option to extend the term assignment for an additional three years at a price of $2,000 per acre for a total of $640,000.  This acreage has potential for development of the horizontal Wolfcamp.  Mexco retains a 1% overriding royalty interest in the assigned acreage.

Pioneer Natural Resources Company has advised Mexco that it plans to begin drilling operations under a term assignment from Mexco of a leasehold interest from Mexco in 417.33 net acres (837.33 gross acres) also in the Northeast corner of Upton County, Texas.  Mexco retains a 1% royalty which is free of drilling, completion and operation costs.

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, 2015.  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.

Mexco Energy Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Unaudited)

   
June 30,2015
    
March 31,2015
  
ASSETS 
        
Current assets
        
Cash and cash equivalents
  
$
156,545
    
$
96,084
  
Accounts receivable:
                
Oil and gas sales
    
418,126
      
384,485
  
Trade
    
52,997
      
64,584
  
Prepaid costs and expenses
    
36,423
      
44,618
  
Total current assets
    
664,091
      
589,771
  
                 
Property and equipment, at cost
                
Oil and gas properties, using the full cost method
    
41,213,956
      
40,563,443
  
Other
    
106,792
      
106,792
  
Accumulated depreciation, depletion and amortization
    
(20,256,018
)
    
(19,838,036
)
Property and equipment, net
    
21,064,730
      
20,832,199
  
                 
Other noncurrent assets
    
47,135
      
48,980
  
Total assets
  
$
21,775,956
    
$
21,470,950
  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
                
Current liabilities
                
Accounts payable and accrued expenses
  
$
952,334
    
$
423,121
  
                 
Long-term debt
    
6,150,000
      
5,950,000
  
Asset retirement obligations
    
1,241,073
      
1,230,216
  
Deferred income tax liabilities
    
508,923
      
660,870
  
Total liabilities
    
8,852,330
      
8,264,207
  
                 
Commitments and contingencies
                
                 
Stockholders' equity
                
Preferred stock - $1.00 par value;
                
10,000,000 shares authorized; none outstanding
    
-
      
-
  
Common stock - $0.50 par value; 40,000,000 shares authorized;
                
2,104,266 shares issued and 2,037,266 shares outstanding as of June 30, 2015 and March 31, 2015
    
1,052,133
      
1,052,133
  
Additional paid-in capital
    
7,116,280
      
7,075,031
  
Retained earnings
    
5,101,214
      
5,425,580
  
Treasury stock, at cost (67,000 shares)
    
(346,001
)
    
(346,001
)
Total stockholders' equity
    
12,923,626
      
13,206,743
  
Total liabilities and stockholders’ equity
  
$
21,775,956
    
$
21,470,950
  

Mexco Energy Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended June 30,
(Unaudited)

   
2015
    
2014
  
Operating revenues:
        
Oil and gas
  
$
692,582
    
$
1,006,656
  
Other 
    
10,027
      
11,178
  
Total operating revenues
    
702,609
      
1,017,834
  
                 
Operating expenses:
                
Production
    
297,578
      
310,778
  
Accretion of asset retirement obligations
    
8,784
      
4,835
  
Depreciation, depletion and amortization
    
417,982
      
300,815
  
General and administrative
    
413,746
      
350,337
  
Total operating expenses
    
1,138,090
      
966,765
  
                 
Operating (loss) income
    
(435,481
)
    
51,069
  
                 
Other income (expense):
                
Interest income
    
33
      
2
  
Interest expense
    
(40,865
)
    
(15,770
)
Loss on derivative instruments
    
-
      
(33,628
)
Net other expense
    
(40,832
)
    
(49,396
)
                 
(Loss) earnings before provision for income taxes
    
(476,313
)
    
1,673
  
                 
Income tax benefit:
                
Current
    
-
      
-
  
Deferred
    
(151,947
)
    
(17,381
)
     
(151,947
)
    
(17,381
)
                 
Net (loss) income
  
$
(324,366
)
  
$
19,054
  
                 
(Loss) income per common share:
                
Basic
  
$
(0.16
)
  
$
0.01
  
Diluted
  
$
(0.16
)
  
$
0.01
  
                 
Weighted average common shares outstanding:
                
Basic
    
2,037,266
      
2,038,266
  
Diluted
    
2,037,266
      
2,054,847
  

MEXCO ENERGY CORP Reports