8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934.

Date of Report: July 6, 2007

(Date of earliest event reported)

Mexco Energy Corporation

(Exact name of registrant as specified in its charter)

CO (State or other jurisdiction of incorporation) 0-6694 (Commission File Number) 84-0627918 (IRS Employer Identification Number)

214 W. Texas Avenue, Suite 1101 (Address of principal executive offices) 79701 (Zip Code)

Registrant's telephone number, including area code: 432-682-1119

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.13e-4(c))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On July 6, 2007, Mexco Energy Corporation (the “Registrant”) issued a press release reporting its financial results for the year ended March 31, 2007.

The Registrant hereby incorporates by reference into this Item 2.02 the information set forth in such press release, a copy of which is furnished as Exhibit 99.1 to this Current Report. Pursuant to the rules and regulations of the Securities and Exchange Commission, such exhibit and the information set forth therein and herein are deemed to be furnished and shall not be deemed to be “filed” under the Securities Exchange Act of 1934, as amended (the Exchange Act).

Item 9.01. Financial Statements and Exhibits.

(c)Exhibits

Exhibit Number Description

99.1 Press release dated July 6, 2007.

SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	MEXCO ENERGY CORPORATION
Dated: July 6, 2007	By:	/s/ Nicholas C. Taylor
		Nicholas C. Taylor Chief Executive Officer

INDEX TO EXHIBITS

Exhibit Number Description

99.1 Press release dated July 6, 2007.

EX-99.1

FOR IMMEDIATE RELEASE:

Mexco Energy Corporation Reports Profitable Fiscal 2007

MIDLAND, TX - 07/6/07 - Mexco Energy Corporation (AMEX: MXC) reported results on its Annual Report on Form 10-K to the Securities and Exchange Commission for the fiscal year ended March 31, 2007.

The Company’s total estimated proved reserves at March 31, 2007 were approximately 6.905 Bcf of natural gas and 220,000 barrels of oil and natural gas liquids, and its estimated present value of proved reserves was approximately $26 million based on estimated future net revenues discounted at 10% per annum, pricing and other assumptions set forth in “Item 2 - Properties” of the Company’s Form 10-K. During fiscal 2007, the Company added proved reserves of 226,000 Mcfe through extensions and discoveries, added 397,000 Mcfe through acquisitions and had upward revisions of previous estimates of 248,000 Mcfe. This represents an approximate 20%increase in oil reserves and a 3% increase in gas reserves as compared to fiscal 2006.

During the year ended March 31, 2007, the Company participated with working interests in 47 gross wells (.22 net wells) compared to 12 gross wells (.05 net wells) for the previous year. All of such wells were commercially productive excepting re-entry of a well in Roosevelt County, New Mexico.

For fiscal 2007, gas reserves constituted approximately 84% of the Company’s total proved reserves and approximately66% of the Company’s revenues.

The Company reported net income of $608,385, or $.33 per diluted share, for fiscal year 2007 as compared to $788,805, or $.43 per diluted share, for fiscal 2006, a 23% decrease.

Operating revenues in fiscal 2007 were $2,971,717, a decrease of 20% over 2006 operating revenues of $3,719,643. The average sales price received of $6.75 per Mcfe decreased 14% from the $7.86 per Mcfe received in fiscal 2006. Oil production decreased 2% and gas production decreased 8% during fiscal 2007 due to normal decline in production. Revenues from oil and gas royalty interests accounted for approximately 24% of the Company’s revenues for fiscal 2007 and 2006.

Total operating expenses were $2,376,841, a decrease of 9% from 2006 operating expenses of $2,604,677 resulting from an impairment of a long term asset in fiscal 2006 amounting to approximately $262,000.

The Company owns oil and gas properties in ten states, with the majority of its activity centered in West Texas.The Company continues to focus its efforts to increase oil and natural gas reserves, through exploration and development as well as acquisitions.

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, 2007. Mexco Energy Corporation disclaims any intention or obligation to revise any forward-looking statements

For additional information, please contact:

Nicholas C. Taylor, CEO

Tammy L. McComic, CFO

432-682-1119

Mexco Energy Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

Year ended March 31,

	2007			2006			2005
Operating revenues:
Oil and gas	$	2,969,325		$	3,716,564		$	2,963,889
Other		2,392			3,079			5,937
Total operating revenues		2,971,717			3,719,643			2,969,826
Operating expenses:
Production		870,778			843,927			780,233
Accretion of asset retirement obligation		24,057			23,436			24,735
Depreciation, depletion, and amortization		652,826			658,365			582,268
General and administrative		829,180			817,332			658,360
Impairment of long-term asset		-			261,617			-
Total operating expenses		2,376,841			2,604,677			2,045,596
Operating profit		594,876			1,114,966			924,230
Other income (expense):
Interest income		4,670			2,837			746
Interest expense		(24,046	)		(98,657	)		(89,154	)
Net other expense		(19,376	)		(95,820	)		(88,408	)
Earnings before income taxes and minority interest		575,500			1,019,146			835,822
Income tax expense (benefit):
Current		-			(19,312	)		76,597
Deferred		(28,050	)		291,452			196,012
		(28,050	)		272,140			272,609
Income before minority interest		603,550			747,006			563,213
Minority interest in loss of subsidiary		4,835			41,799			14,314
Net income	$	608,385		$	788,805		$	577,527
Net income per common share:
Basic:	$	0.35		$	0.45		$	0.33
Diluted:	$	0.33		$	0.43		$	0.32

Mexco Energy Corporation and Subsidiaries

CONSOLIDATED BALANCE SHEETS

As of March 31,

	2007			2006
ASSETS
Current assets
Cash and cash equivalents	$	72,537		$	52,768
Accounts receivable:
Oil and gas sales		399,659			429,133
Trade		2,987			336
Related parties		-			73
Income tax receivable		59,736			59,736
Prepaid costs and expenses		65,986			15,840
Total current assets		600,905			557,886
Investment in GazTex, LLC		20,509			20,509
Property and equipment, at cost
Oil and gas properties, using the full cost
method ($0 and $121,418 excluded
from amortization in 2007 and 2006, respectively)		20,526,431			18,947,532
Other		51,412			39,848
		20,577,843			18,987,380
Less accumulated depreciation, depletion, and amortization		11,240,277			10,587,451
Property and equipment, net		9,337,566			8,399,929
	$	9,958,980		$	8,978,324
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued expenses	$	154,074		$	118,125
Long-term debt		700,000			600,000
Asset retirement obligation		350,584			352,416
Deferred income tax liabilities		978,686			1,006,736
Minority interest		-			2,051
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;
1,840,366 and 1,776,566shares issued in 2007
and 2006, respectively		920,183			888,283
Additional paid-in capital		4,291,892			3,893,588
Retained earnings		2,871,085			2,262,700
Treasury stock, at cost (59,525 and 33,525 shares, respectively)		(307,524	)		(145,575	)
Total stockholders’ equity		7,775,636			6,898,996
	$	9,958,980		$	8,978,324