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Mexco Energy Corp Reports Operating Results (10-K)
Posted by: gurufocus (IP Logged)
Date: June 29, 2012 03:16PM

Mexco Energy Corp (MXC) filed Annual Report for the period ended 2012-03-31. Mexco Energy Corporation has a market cap of $11.5 million; its shares were traded at around $6 with a P/E ratio of 37.7 and P/S ratio of 3.6. Mexco Energy Corporation had an annual average earning growth of 3.4% over the past 10 years.



Highlight of Business Operations:

In accordance with SEC guidelines, the average prices used in computing reserves at March 31, 2012 were $93.75 per bbl of oil and $3.83 per mcf of natural gas, based on the 12-month unweighted arithmetic average market prices for sales of oil and natural gas on the first calendar day of each month during fiscal 2012. The benchmark price of $94.65 per bbl of oil was adjusted by lease for gravity, transportation fees and regional price differentials. The benchmark price of $3.73 per mcf of natural gas was adjusted by lease for BTU content, transportation fees and regional price differentials. The average prices used in computing reserves at March 31, 2011 were $77.27 per bbl of oil and $3.88 per mcf of natural gas, based on the 12-month average market prices for sales of oil and natural gas on the first calendar day of each month during fiscal 2011. The benchmark prices used in computing reserves at March 31, 2011 were $80.04 per bbl of oil and $4.11 per mcf of natural gas. The average prices used in computing reserves at March 31, 2010 were $66.21 per bbl of oil and $3.77 per mcf of natural gas, based on the 12-month average market prices for sales of oil and natural gas on the first calendar day of each month during fiscal 2010. The benchmark prices used in computing reserves at March 31, 2010 were $69.64 per bbl of oil and $3.98 per mcf of natural gas.

We participated in 37 infill wells in the Yeso/Paddock formations of the Dodd-Federal Unit in the Grayburg San Andres Jackson Field of Eddy County, New Mexico. Twenty-three of these wells have already been drilled with the balance scheduled to be drilled in the next twelve months to a total depth of approximately 5,000 feet. The unit, operated by Concho Resources, Inc., currently contains approximately 133 producing wells. Mexco s working interest in this unit .185% (.14% net revenue interest). Our share of the costs to drill and complete these wells through March 2012 was approximately $45,000. For the fiscal year ending March 31, 2011, we participated in the drilling of 5 producing wells in this unit.

It should not be assumed that the present value of future net cash flows is the current market value of our estimated proved reserves. In accordance with SEC requirements, the cost ceiling represents the present value (discounted at 10%) of net cash flows from sales of future production using the average price over the prior 12-month period.

Read the The complete Report



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