Mexco Energy Corporation (MXC)

[OptionMonster]

Mexco Energy Corporation Announces Exploration and Development Results

MIDLAND, Texas, May 23 /PRNewswire-FirstCall/ -- Mexco Energy Corporation (AMEX:MXC) today announced the results of further tests of a well in Loving County, Texas.

Mexco Energy Corporation acted as operator of a discovery well drilled to a depth of approximately 6,680 feet in the Cherry Canyon producing interval in Loving County, Texas. Based on a four point test by an independent testing firm, this well was calculated to produce at an absolute open flow rate of 12,773,000 cubic feet of natural gas per day. Mexco's working interest in this well is 31.25% (net revenue interest of 22.94%).

During this four hour test the well actually produced 1,366,000 cubic feet of natural gas, 26 barrels of 63 gravity condensate and 12 barrels of water on chokes ranging from 11/64 to 15/64 inches. Previously the well had been shut in for a period in excess of 72 hours. The rates at which this will be produced and sold have not yet been determined and may be substantially different from these potential tests, based on regulatory and engineering considerations as well as performance of the well over longer periods of time.

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.