Mexco Energy Corporation Announces Additional Development of Properties
November 18 2009 - 1:34PM
PR Newswire (US)
MIDLAND, Texas, Nov. 18 /PRNewswire-FirstCall/ -- Mexco Energy
Corporation (AMEX:MXC) today announced additional development of
oil and gas properties in which it holds an interest. Mexco
announced development of its natural gas property in the Newark
East (Barnett Shale) Field in Tarrant County, Texas. Mexco owns a
21.45% royalty interest in a 122 acre tract. Three additional wells
have been drilled on subsequently pooled acreage and are currently
producing natural gas into the sales pipeline. This property,
operated by Chesapeake Operating, Inc., now contains the original 3
wells plus the 3 new wells for a total of 6 wells. Mexco's royalty
interests in these pooled acreage wells range from 5.39% to 6.57%.
The Newark East Field is one of the largest gas fields in the
United States. Mexco is participating in drilling 3 development oil
wells in the Brahaney Field in Yoakum County, Texas. All wells are
to be drilled to a total depth of approximately 5,500 feet to test
the long-lived San Andres formation. Two of these wells have been
completed with the third well currently being drilled. Mexco's
working interest in these wells is 3.75% (2.3985% net revenue
interest). Mexco also is participating in the drilling of 5 infill
oil wells in the Fuhrman-Mascho and Nix (Clearfork) Fields of
Andrews County, Texas. All of these wells have been drilled to a
total depth of approximately 7,200 feet to test the long-lived
Clearfork and San Andres formations and are in the process of being
completed. Mexco's working interest in these wells range from
0.399% to 0.7% (respectively, from 0.225% to 0.399% net revenue
interest). Mexco also participated in the drilling of 4 infill
wells in the Dodd-Federal Unit in the Grayburg Jackson Field of
Eddy County, New Mexico. These wells were drilled to a total depth
of approximately 5,000 feet. The unit, operated by Marbob Energy
Corporation, currently contains approximately 100 wells and is
expected to contain approximately 140 wells when completely
drilled. Mexco's working interest in this unit is .1848% (.14% net
revenue interest). 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. For more information on
Mexco Energy Corporation, go to http://www.mexcoenergy.com/.
FORWARD-LOOKING STATEMENTS Except for historical information,
statements made in this release are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These
statements are based on assumptions and estimates that management
believes are reasonable based on currently available information;
however, management's assumptions and the Company's future
performance are subject to a wide range of business risks and
uncertainties, and there is no assurance that these goals and
projections can or will be met. Actual events or results may differ
materially from the forward-looking statements. Estimates of
potential typically do not take into account all the risks of
drilling and completion nor do they take into account the fact that
hydrocarbon volumes are never 100% recoverable. Such estimates are
part of the complex process of trying to measure and evaluate risk
and reward in an uncertain industry. Any number of factors could
cause actual results to differ materially from those in the
forward-looking statements, including, but not limited to,
production variance from expectations, volatility of oil and gas
prices, the need to develop and replace reserves, the substantial
capital expenditures required to fund operations, exploration
risks, uncertainties about estimates of reserves, competition,
government regulation, costs and results of drilling new projects,
equipment availability, or other things that are associated with
oil and gas production or may be beyond the control of the Company.
Operations that are anticipated, planned or scheduled may be
changed, delayed, take longer than expected, fail to accomplish
intended results, or not take place at all. These risks and
uncertainties are described in the Company's annual report on Form
10-K filed with the Securities and Exchange Commission ("SEC").
DATASOURCE: Mexco Energy Corporation CONTACT: Tammy L. McComic,
Executive Vice President and Chief Financial Officer of Mexco
Energy Corporation, +1-432-682-1119, Web Site:
http://www.mexcoenergy.com/
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