Mexco Energy Corporation Announces Receipt of $450,000 and Plans for Additional Development of Properties

Mexco Energy Corporation MXC today announced developments regarding oil and gas properties in the Permian Basin. Mexco announced receipt of $450,000 in cash from Energen Corporation EGN for the assignment of a five year term leasehold interest in 200 acres at $2,250 per acre. The assignment covers depths of 7,680 to 11,500 feet from the surface. Mexco retained a royalty of 8.33%. This interest has potential for oil production from the Avalon and Bone Springs in separate intervals by horizontal drilling above the prolific Vermejo Fusselman Gas Field of Loving County, Texas. Mexco also announced plans to participate in the drilling of an additional 59 infill wells in the Yeso/Paddock formations of the Dodd-Federal Unit in the Grayburg San Andres Jackson Field of Eddy County, New Mexico. These wells are proposed to be drilled in the next twelve months to a total depth of approximately 5,000 feet. The unit, operated by Concho Resources, Inc. CXO, currently contains approximately 115 producing wells. Mexco's working interest in this unit is .1848% (.14% net revenue interest).