fp0005074_8k.htm

July 3, 2012

FOR IMMEDIATE RELEASE

MEXCO ENERGY CORPORATION REPORTS PROFITABLE FISCAL 2012

MIDLAND, TX – 07/03/12 – 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, 2012.

The Company reported net income of $329,993, or $.16 per diluted share, for fiscal year 2012, an increase of 112%, as compared to $155,696, or $.08 per diluted share, for fiscal 2011.

Operating revenues in fiscal 2012 were $3,240,039, an increase of 2% when compared to 2011 operating revenues of $3,161,858. This is the result of a 14% increase in oil production and a 19% increase in oil price partially offset by a 14% decrease in natural gas production and a 10% decrease in natural gas price. The average sales price received was $6.29 per Mcfe compared to $5.60 per Mcfe received in fiscal 2011. Revenues from oil and gas royalty interests accounted for approximately 36% of the Company’s revenues for fiscal 2012.

The Company’s estimated present value of proved reserves at March 31, 2012 was approximately $25.0 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, an increase of 10% as compared to the same at March 31, 2011. The Company’s total estimated proved reserves at March 31, 2012 were 8.445 billion cubic feet of natural gas, a decrease of 4% over the prior fiscal year, and 346,000 barrels of oil and natural gas liquids, an increase of 19% over the prior fiscal year. For fiscal 2012, natural gas constituted approximately 80% of the Company’s total proved reserves and approximately 44% of the Company’s revenues.

Nicholas C. Taylor, Chairman and Chief Executive Officer, stated, “Fiscal 2012 was a productive year for drilling including 54 gross wells (1.55 net wells). Expenditures for fiscal 2012 amounted to approximately $1,800,000 funded primarily out of cash flow. Also, in both drilling and acquisitions, Mexco shifted emphasis from natural gas to oil.” The Company’s debt is currently at $1,475,000, 11% of equity.

The Company owns oil and gas properties in twelve 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 acquisitions, exploration and development.

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, 2012. Mexco Energy Corporation disclaims any intention or obligation to revise any forward-looking statements

For additional information, please contact:

Tammy L. McComic, President and Chief Financial Officer

mexco@sbcglobal.net, 432-682-1119

Mexco Energy Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
Year ended March 31,

	2012			2011			2010
Operating revenues:
Oil and gas	$	3,223,659		$	3,145,247		$	3,220,763
Other		16,380			16,611			24,993
Total operating revenues		3,240,039			3,161,858			3,245,756

Operating expenses:
Production		926,215			1,025,932			1,054,224
Accretion of asset retirement obligation		36,251			34,129			31,625
Depreciation, depletion and amortization		996,205			1,047,906			1,113,141
General and administrative		950,690			877,790			870,558
Total operating expenses		2,909,361			2,985,757			3,069,548

Operating profit		330,678			176,101			176,208

Other income (expenses):
Interest income		195			360			478
Interest expense		(28,840	)		(36,361	)		(33,082	)

Net other expense		(28,645	)		(36,001	)		(32,604	)

Earnings before provision for income taxes		302,033			140,100			143,604

Income tax expense (benefit):
Current		-			(25,502	)		25,502
Deferred		(27,960	)		9,906			(282,737	)
		(27,960	)		(15,596	)		(257,235	)

Net income	$	329,993		$	155,696		$	400,839


Earnings per common share:
Basic:	$	0.16		$	0.08		$	0.21
Diluted:	$	0.16		$	0.08		$	0.21

Weighted average common shares outstanding:
Basic:		2,028,014			1,947,605			1,888,070
Diluted:		2,036,241			1,962,656			1,929,588

Mexco Energy Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS

	March 31,			March 31,
	2012			2011
ASSETS
Current assets
Cash and cash equivalents	$	498,681		$	179,071
Accounts receivable:
Oil and gas sales		333,191			384,215
Trade		30,404			42,432
Prepaid costs and expenses		16,782			64,479
Total current assets		879,058			670,197


Property and equipment, at cost
Oil and gas properties, using the full cost method		31,840,059			30,426,817
Other		78,520			78,520
		31,918,579			30,505,337

Less accumulated depreciation, depletion and amortization		16,223,267			15,227,063
Property and equipment, net		15,695,312			15,278,274
	$	16,574,370		$	15,948,471

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
Accounts payable and accrued expenses	$	402,098		$	199,944

Long-term debt		1,700,000			1,800,000
Asset retirement obligations		613,279			528,911
Deferred income tax liabilities		884,703			912,663

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;
2,099,116 and 2,089,116 shares issued; 2,035,949 and 2,029,949 shares outstanding as of
March 31, 2012 and 2011, respectively		1,049,558			1,044,558
Additional paid-in capital		6,608,350			6,453,226
Retained earnings		5,641,827			5,311,834
Treasury stock, at cost (63,167 and 59,167 shares, respectively)		(325,445	)		(302,665	)
Total stockholders' equity		12,974,290			12,506,953
	$	16,574,370		$	15,948,471

Date of Report: July 3, 2012 (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 Midland, TX (Address of principal executive offices)		79701 (Zip Code)
Registrant's telephone number, including area code: 432-682-1119

	Exhibit
	Number	Document

	99.1	News release dated July 3, 2012.

	MEXCO ENERGY CORPORATION

Dated: July 3, 2012	By:	/s/ Tammy McComic
		Tammy McComic
		President and Chief Financial Officer