MIDLAND, TX--(Marketwired - Jun 28, 2017) - Mexco Energy Corporation (NYSE MKT: MXC) reported results on its Annual Report on Form 10-K to the Securities and Exchange Commission ("SEC") for the fiscal year ended March 31, 2017.

The Company reported a net loss of $694,553 or ($.34) per diluted share, for fiscal year 2017, a decrease from a net loss of $3,979,685, or ($1.95) per diluted share, for fiscal 2016.

Operating revenues in fiscal 2017 were $2,525,363, an increase of 4% when compared to fiscal 2016 operating revenues of $2,421,792. This is the result of a 6.5% increase in oil prices and a 20% increase in gas prices offset by an 11% decrease in oil production and a 13% decrease in natural gas production.

The Company reported an operating loss of $3,454 for the quarter ending March 31, 2017, the Company's fourth quarter of fiscal 2017, a decrease in loss from the comparable quarter of fiscal 2016. Operating revenues in the fourth quarter were $684,204 compared to $445,484 for the same quarter in fiscal 2016, an increase of 54%. This is primarily the result of increased oil and natural gas prices.

The Company's estimated present value of proved reserves at March 31, 2017 was approximately $25 million based on estimated future net revenues discounted at 10% per annum, pricing and other assumptions set forth in "Item2 - Properties" of the Company's Form 10-K, an increase of 57% as compared to the same at March 31, 2016. The Company's estimated proved oil reserves at March 31, 2017 increased 96% to 2.124 million barrels of oil and natural gas liquids, and natural gas reserves increased 15% to 6.681 billion cubic feet over the prior fiscal year. For fiscal 2017, oil constituted approximately 66% of the Company's total proved reserves and approximately 65% of the Company's revenues.

After fiscal 2017, Mexco sold certain non-core properties resulting in a reduction in bank indebtedness to $2,475,500 as of June 27, 2017.

In addition to an indeterminate number of wells to be drilled by other operators on Mexco's royalty interests, the Company currently expects to participate in the drilling and completion of approximately 27 horizontal wells, at an estimated aggregate cost of approximately $1,100,000 for the fiscal year ended March 31, 2018, of which approximately $200,000 has been expended to date. The operators of these wells include Apache Corporation, Bold Energy III, LLC, Concho Resources, Inc., Mewbourne Oil Company, XTO Energy, Inc. and others.

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 primarily in the Permian Basin. For more information on Mexco Energy Corporation, go to www.mexcoenergy.com.

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, 2017. Mexco Energy Corporation disclaims any intention or obligation to revise any forward-looking statements.

Mexco Energy Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS
						March 31,				March 31,
						2017				2016
ASSETS
	Current assets
		Cash and cash equivalents				$	73,451			$	34,013
		Accounts receivable:
			Oil and gas sales				381,414				248,145
			Trade				13,744				29,880
		Prepaid costs and expenses					36,325				43,284
				Total current assets			504,934				355,322
	Property and equipment, at cost
		Oil and gas properties, using the full cost method					37,640,096				40,365,197
		Other					107,484				107,484
		Accumulated depreciation, depletion and amortization					(25,572,606	)			(24,395,184	)
				Property and equipment, net			12,174,974				16,077,497
		Other noncurrent assets					28,157				34,441
				Total assets		$	12,708,065			$	16,467,260
LIABILITIES AND STOCKHOLDERS' EQUITY
	Current liabilities
		Accounts payable and accrued expenses				$	137,259			$	332,172
	Long-term debt						2,900,000				5,580,000
	Asset retirement obligations						968,484				1,211,077
				Total liabilities			4,005,743				7,123,249
	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; 2,104,266 shares issued and 2,037,266 shares outstanding as of March 31, 2017 and 2016, respectively					1,052,133				1,052,133
		Additional paid-in capital					7,244,848				7,191,984
		Retained earnings					751,342				1,445,895
		Treasury stock, at cost (67,000 shares)					(346,001	)			(346,001	)
	Total stockholders' equity						8,702,322				9,344,011
						$	12,708,065			$	16,467,260

Mexco Energy Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
Year ended March 31,
					2017				2016				2015
	Operating revenues:
		Oil and gas			$	2,337,222			$	2,383,950			$	3,336,826
		Other				188,141				37,842				53,179
			Total operating revenues			2,525,363				2,421,792				3,390,005
	Operating expenses:
		Production				878,458				1,144,061				1,300,820
		Accretion of asset retirement obligation				35,743				35,155				27,932
		Impairment of long-lived assets				-				2,984,410				-
		Depreciation, depletion and amortization				1,177,422				1,572,738				1,362,862
		General and administrative				976,392				1,155,183				1,239,750
			Total operating expenses			3,068,015				6,891,547				3,931,364
	Operating loss					(542,652	)			(4,469,755	)			(541,359	)
	Other income (expenses):
		Interest income				225				575				45
		Interest expense				(152,126	)			(171,375	)			(99,240	)
		Gain on derivative instruments				-				-				102,069
			Net other (expense) income			(151,901	)			(170,800	)			2,874
	Loss before provision for income taxes					(694,553	)			(4,640,555	)			(538,485	)
	Income tax benefit:
		Deferred				-				(660,870	)			(197,499	)
	Net loss				$	(694,553	)		$	(3,979,685	)		$	(340,986	)
	Loss per common share:
		Basic:			$	(0.34	)		$	(1.95	)		$	(0.17	)
		Diluted:			$	(0.34	)		$	(1.95	)		$	(0.17	)
	Weighted average common shares outstanding:
		Basic:				2,037,266				2,037,266				2,038,250
		Diluted:				2,037,266				2,037,266				2,038,250