Mexco Energy (MXC) 8-K Mexco Energy Corporation Reports Profitable Earnings

EXHIBIT 99.1

February 12, 2009

FOR IMMEDIATE RELEASE

Mexco Energy Corporation Reports Profitable Earnings

MIDLAND, TX – 02/12/09 -- Mexco Energy Corporation (AMEX: MXC) today reported net income of $131,501, or $0.07 per diluted share, for the quarter ending December 31, 2008, the Company’s third quarter of fiscal 2009, compared to $221,114 for the same quarter of fiscal 2008.   Operating revenues in the third quarter of fiscal 2009 decreased $27,436 or 3% to $927,644 from $955,080 for the third quarter of fiscal 2008.

The average sales price for the third quarter of fiscal 2009 was $5.19 per Mcfe compared to $8.23 per Mcfe for the third quarter of fiscal 2008, a decrease of 37%. Gas production increased 69% and oil production decreased 7% during the third quarter of fiscal 2009 as compared to the same period of fiscal 2008.

For the nine months ended December 31, 2008, the Company reported a 378% increase in net income to $1,181,405, or $0.61 per diluted share, as compared to $247,164, or $0.14 per diluted share, for the same period of fiscal 2008. Operating revenues increased 59% to $4,208,771 for the nine month period from $2,646,505 for the same period of fiscal 2008, partially the result of revenues generated from the recent purchases of Barnett Shale oil and gas royalty interests.

For the three and nine month periods ending December 31, 2008, revenues from oil and gas royalty interests accounted for approximately 47% and 36%, respectively, of the Company’s revenues, compared to approximately 16% and 18% for the same three and nine month periods ending December 31, 2007.

These nine month period results do not reflect any income from Mexco’s Steelhead #1 well in Loving County.  The Company has acquired rights-of-way, built a pipeline, initiated testing and, as of January 2009, commenced sales of natural gas from this well.

Nicholas C. Taylor, President and CEO of Mexco Energy Corporation, said, "In addition to the recent commencement of sales of natural gas from the Steelhead discovery, we expect our Ward Grande #1 well to begin sales of natural gas in the next few days.  Both wells are in the testing phase.”

Thomas Graham, Jr., Chairman of the Board of Directors of the Company added, “This latest report affirms our belief that fiscal 2009 will be a record year due to increased volumes despite declining prices for oil and gas.”

Mexco Energy Corporation owns oil and gas properties in ten states, with the majority of its activity centered in West Texas.  The Company continues to focus its efforts on increasing oil and natural gas reserves, through exploration and development as well as acquisition of royalties with significant development potential.

Mexco Energy Corporation and Subsidiaries

CONSOLIDATED BALANCE SHEETS

	December 31, 2008			March 31, 2008
ASSETS	(Unaudited)
Current assets
Cash and cash equivalents	$	256,872		$	303,617
Accounts receivable:
Oil and gas sales		573,028			758,459
Trade		155,501			102,403
Related Parties		-			12,659
Prepaid costs and expenses		41,000			22,062
Total current assets		1,026,401			1,199,200
Investment in GazTex, LLC		-			20,509
Property and equipment, at cost
Oil and gas properties, using the full cost method		26,430,616			23,941,483
Other		61,362			61,362
		26,491,978			24,002,845
Less accumulated depreciation, depletion and amortization		12,771,232			12,019,895
Property and equipment, net		13,720,746			11,982,950
	$	14,747,147		$	13,202,659
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued expenses	$	528,842		$	571,526
Long-term debt		1,650,000			2,600,000
Asset retirement obligation		418,343			374,789
Deferred income tax liabilities		1,238,450			1,196,280
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;
1,958,866 and 1,841,366 shares issued;
1,874,866 and 1,757,366 shares outstanding as of
December 31 and March 31, 2008, respectively		979,433			920,683
Additional paid-in capital		5,592,562			4,381,269
Retained earnings		4,766,134			3,584,729
Treasury stock, at cost (84,000 shares)		(426,617	)		(426,617	)
Total stockholders’ equity		10,911,512			8,460,064
	$	14,747,147		$	13,202,659

Mexco Energy Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended						Nine Months Ended
	December 31						December 31
	2008			2007			2008			2007
Operating revenue:
Oil and gas sales	$	908,253		$	952,211		$	4,176,050		$	2,642,302
Other		19,391			2,869			32,721			4,203
Total operating revenues		927,644			955,080			4,208,771			2,646,505
Operating expenses:
Production		237,736			241,019			930,477			1,041,405
Accretion of asset retirement obligation		7,291			6,368			21,495			19,691
Depreciation, depletion, and amortization		271,530			174,842			751,337			531,523
General and administrative		193,102			187,648			674,002			636,191
Total operating expenses		709,659			609,877			2,377,311			2,228,810
Operating profit		217,985			345,203			1,831,460			417,695
Other income (expense):
Interest income		110			1,170			1,117			3,255
Interest expense		(17,226	)		(22,791	)		(70,815	)		(58,484	)
Net other expense		(17,116	)		(21,621	)		(69,698	)		(55,229	)
Earnings before income taxes		200,869			323,582			1,761,762			362,466
Income tax expense:
Current		67,057			-			538,187			-
Deferred		2,311			102,468			42,170			115,302
		69,368			102,468			580,357			115,302
Net income	$	131,501		$	221,114		$	1,181,405		$	247,164
Earnings per common share:
Basic	$	0.07		$	0.13		$	0.64		$	0.14
Diluted	$	0.07		$	0.12		$	0.61		$	0.14
Weighted average common shares outstanding:
Basic		1,874,866			1,764,649			1,836,999			1,771,222
Diluted		1,938,746			1,772,583			1,928,029			1,778,008

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, 2008.  Mexco Energy Corporation disclaims any intention or obligation to revise any forward-looking statements.

For additional information, please contact:  Nicholas C. Taylor, President and Chief Executive Officer or Tammy L. McComic, Vice-President and Chief Financial Officer, both of Mexco Energy Corporation, (432) 682-1119.