Mexco Energy (MXC) 10-Q 12 Feb 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Dec. 31, 2015	Feb. 12, 2016
Document And Entity Information
Entity Registrant Name	MEXCO ENERGY CORP
Entity Central Index Key	66,418
Document Type	10-Q
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,037,266
Trading Symbol	MXC
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,016

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Dec. 31, 2015	Mar. 31, 2015
Current assets
Cash and cash equivalents	$ 35,423	$ 96,084
Accounts receivable:
Oil and gas sales	252,204	384,485
Trade	34,398	64,584
Prepaid costs and expenses	13,873	44,618
Total current assets	335,898	589,771
Property and equipment, at cost
Oil and gas properties, using the full cost method	40,872,331	40,563,443
Other	107,484	106,792
Accumulated depreciation, depletion and amortization	(24,067,063)	(19,838,036)
Property and equipment, net	16,912,752	20,832,199
Other noncurrent assets	35,580	48,980
Total assets	17,284,230	21,470,950
Current liabilities
Accounts payable and accrued expenses	453,963	423,121
Long-term debt	5,850,000	5,950,000
Asset retirement obligations	$ 1,223,963	1,230,216
Deferred income tax liabilities		660,870
Total liabilities	$ 7,527,926	$ 8,264,207
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 issued and 2,037,266 shares outstanding as of December 31, 2015 and March 31, 2015	$ 1,052,133	$ 1,052,133
Additional paid-in capital	7,170,801	7,075,031
Retained earnings	1,879,371	5,425,580
Treasury stock, at cost - (67,000 shares)	(346,001)	(346,001)
Total stockholders' equity	9,756,304	13,206,743
Total liabilities and stockholders' equity	$ 17,284,230	$ 21,470,950

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Dec. 31, 2015	Mar. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock par value	$ 1	$ 1
Preferred stock shares authorized	10,000,000	10,000,000
Preferred stock shares issued
Preferred stock shares outstanding
Common stock par value	$ 0.50	$ 0.50
Common stock shares authorized	40,000,000	40,000,000
Common stock shares issued	2,104,266	2,104,266
Common stock shares outstanding	2,037,266	2,037,266
Treasury stock, shares	67,000	67,000

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Operating revenue:
Oil and gas	$ 537,771	$ 790,335	$ 1,951,228	$ 2,784,932
Other	7,099	9,349	25,080	38,684
Total operating revenues	544,870	799,684	1,976,308	2,823,616
Operating expenses:
Production	286,519	377,438	869,091	1,014,786
Accretion of asset retirement obligation	8,797	$ 8,119	26,394	$ 17,663
Impairment of long-lived asset	2,150,621		2,984,410
Depreciation, depletion, and amortization	375,987	$ 353,158	1,244,617	$ 976,669
General and administrative	272,936	301,193	931,545	943,525
Total operating expenses	3,094,860	1,039,908	6,056,057	2,952,643
Operating loss	(2,549,990)	(240,224)	(4,079,749)	(129,027)
Other income (expenses):
Interest income	328	4	363	9
Interest expense	$ (43,413)	(29,077)	$ (127,693)	(60,623)
Gain on derivative instruments		80,120		97,871
Net other (expense) income	$ (43,085)	51,047	$ (127,330)	37,257
Loss before provision for income taxes	$ (2,593,075)	$ (189,177)	$ (4,207,079)	$ (91,770)
Income tax benefit:
Current
Deferred	$ (147,539)	$ (13,856)	$ (660,870)	$ (21,759)
Total	(147,539)	(13,856)	(660,870)	(21,759)
Net loss	$ (2,445,536)	$ (175,321)	$ (3,546,209)	$ (70,011)
Loss per common share:
Basic	$ (1.20)	$ (0.09)	$ (1.74)	$ (0.03)
Diluted	$ (1.20)	$ (0.09)	$ (1.74)	$ (0.03)
Weighted average common shares outstanding:
Basic	2,037,266	2,038,266	2,037,266	2,038,266
Diluted	2,037,266	2,038,266	2,037,266	2,038,266

Consolidated Statement of Chang

Consolidated Statement of Changes in Shareholders' Equity (Unaudited) - USD ($)	Common Stock Par Value [Member]	Treasury Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Total
Balance at Mar. 31, 2015	$ 1,052,133	$ (346,001)	$ 7,075,031	$ 5,425,580	$ 13,206,743
Balance, shares at Mar. 31, 2015	2,104,266	(67,000)
Net loss				$ (324,366)	(324,366)
Stock based compensation			$ 41,249		41,249
Balance at Jun. 30, 2015	$ 1,052,133	$ (346,001)	7,116,280	$ 5,101,214	12,923,626
Balance, shares at Jun. 30, 2015	2,104,266	(67,000)
Balance at Mar. 31, 2015	$ 1,052,133	$ (346,001)	7,075,031	5,425,580	13,206,743
Balance, shares at Mar. 31, 2015	2,104,266	(67,000)
Net loss					(3,546,209)
Balance at Dec. 31, 2015	$ 1,052,133	$ (346,001)	7,170,801	1,879,371	$ 9,756,304
Balance, shares at Dec. 31, 2015	2,104,266	(67,000)
Common stock shares, outstanding at Dec. 31, 2015	2,037,266				2,037,266
Balance at Jun. 30, 2015	$ 1,052,133	$ (346,001)	$ 7,116,280	5,101,214	$ 12,923,626
Balance, shares at Jun. 30, 2015	2,104,266	(67,000)
Net loss				$ (776,307)	(776,307)
Stock based compensation			$ 30,648		30,648
Balance at Sep. 30, 2015	$ 1,052,133	$ (346,001)	$ 7,146,928	$ 4,324,907	12,177,967
Balance, shares at Sep. 30, 2015	2,104,266	(67,000)
Net loss				$ (2,445,536)	(2,445,536)
Stock based compensation			$ 23,873		23,873
Balance at Dec. 31, 2015	$ 1,052,133	$ (346,001)	$ 7,170,801	$ 1,879,371	$ 9,756,304
Balance, shares at Dec. 31, 2015	2,104,266	(67,000)
Common stock shares, outstanding at Dec. 31, 2015	2,037,266				2,037,266

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net loss	$ (3,546,209)	$ (70,011)
Adjustments to reconcile net loss to net cash provided by operating activities:
Deferred income tax benefit	(660,870)	(21,759)
Stock-based compensation	95,770	109,928
Depreciation, depletion and amortization	1,244,617	976,669
Accretion of asset retirement obligations	$ 26,394	17,663
Gain on derivative instruments		$ (97,871)
Impairment of oil and gas properties	$ 2,984,410
Changes in assets and liabilities:
Decrease in accounts receivable	162,467	$ 97,154
Decrease (increase) in prepaid expenses	$ 30,745	(47,547)
Decrease in income taxes payable		(6,500)
Increase (decrease) in accounts payable and accrued expenses	$ 27,855	(10,729)
Net cash provided by operating activities	365,179	946,997
Cash flows from investing activities:
Additions to oil and gas properties	(1,083,698)	(4,289,799)
Additions to other property and equipment	(693)	(5,047)
Settlement of asset retirement obligations	$ (23,812)	(38,476)
Settlement of derivatives		(4,959)
Proceeds from sale of oil and gas properties and equipment	$ 782,363	15,335
Net cash used in investing activities	(325,840)	(4,322,946)
Cash flows from financing activities:
Reduction of long-term debt	(500,000)	(150,000)
Proceeds from long-term debt	400,000	3,475,000
Net cash (used in) provided by financing activities	(100,000)	3,325,000
Net decrease in cash and cash equivalents	(60,661)	(50,949)
Cash and cash equivalents at beginning of period	96,084	156,082
Cash and cash equivalents at end of period	35,423	105,133
Supplemental disclosure of cash flow information:
Cash paid for interest	126,555	53,144
Non-cash investing and financing activities:
Asset retirement obligations	$ 5,097	$ 270,924

Nature of Operations

Nature of Operations	9 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations	1. Nature of Operations Mexco Energy Corporation (a Colorado corporation) and its wholly owned subsidiaries, Forman Energy Corporation (a New York corporation), Southwest Texas Disposal Corporation (a Texas corporation) and TBO Oil & Gas, LLC (a Texas limited liability company) (collectively, the “Company”) are engaged in the exploration, development and production of natural gas, crude oil, condensate and natural gas liquids (“NGLs”). Most of the Company’s oil and gas interests are centered in the Permian Basin of West Texas; however, the Company owns producing properties and undeveloped acreage in thirteen states. Although most of the Company’s oil and gas interests are operated by others, the Company operates several properties in which it owns an interest.

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	9 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	2. Basis of Presentation and Significant Accounting Policies Principles of Consolidation Estimates and Assumptions Interim Financial Statements. Recent Accounting Pronouncements. In February 2015, the FASB issued ASU No. 2015-02, Topic 810: Consolidation which amends the current consolidation guidance. ASU No. 2015-02 is effective for Mexco as of April 1, 2016. Management is assessing the standard update and does not believe there will be a significant impact on our consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, Subtopic 205-40: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern which provides guidance on determining when and how reporting entities must disclose going-concern uncertainties in their financial statements. ASU No. 2014-15 is effective for Mexco for the fiscal year ending March 31, 2017 and interim periods thereafter and early adoption is permitted. Management does not expect the adoption of this ASU to have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Topic 606: Revenue from Contracts with Customers. This ASU provides guidance concerning the recognition and measurement of revenue from contracts with customers. The effective date for ASU 2014-09 was delayed through the issuance of ASU 2015-14, Revenue from Contracts with Customers – Deferral of the Effective Date, to annual and interim periods beginning in 2018 and is required to be adopted using either the retrospective or cumulative effect transition method, with early adoption permitted in 2017. Management is evaluating the effect, if any this pronouncement will have on our consolidated financial statements.

Asset Retirement Obligations

Asset Retirement Obligations	9 Months Ended
	Dec. 31, 2015
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations	3. Asset Retirement Obligations The Company’s asset retirement obligations (“ARO”) relate to the plugging of wells, the removal of facilities and equipment, and site restoration on oil and gas properties. The fair value of a liability for an ARO is recorded in the period in which it is incurred, discounted to its present value using the credit adjusted risk-free interest rate, and a corresponding amount capitalized by increasing the carrying amount of the related long-lived asset. The liability is accreted each period, and the capitalized cost is depreciated over the useful life of the related asset. The ARO is included in the Consolidated Balance Sheets with the current portion being included in the accounts payable and other accrued expenses. The following table provides a rollforward of the AROs for the first nine months of fiscal 2016: Carrying amount of asset retirement obligations as of April 1, 2015 $ 1,240,216 Liabilities incurred 5,097 Liabilities settled (37,744 ) Accretion expense 26,394 Carrying amount of asset retirement obligations as of December 31, 2015 1,233,963 Less: Current portion 10,000 Non-Current asset retirement obligation $ 1,223,963

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation	4. Stock-based Compensation The Company recognized stock-based compensation expense of $23,873 and $45,775 in general and administrative expense in the Consolidated Statements of Operations for the three months ended December 31, 2015 and 2014, respectively. Compensation expense recognized for the nine months ended December 31, 2015 and 2014 was $95,770 and $109,928, respectively. The total cost related to non-vested awards not yet recognized at December 31, 2015 totals $99,836 which is expected to be recognized over a weighted average of 2.17 years. Included in the following table is a summary of the grant-date fair value of stock options granted and the related assumptions used in the Binomial models for stock options granted during the nine months ended December 31, 2015 and 2014. All such amounts represent the weighted average amounts. Nine Months Ended December 31 2015 2014 Grant-date fair value - $ 5.59 Volatility factor - 76.23 % Dividend yield - - Risk-free interest rate - 2.52 % Expected term (in years) - 10 The following table is a summary of activity of stock options for the nine months ended December 31, 2015: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contract Life in Years Aggregate Intrinsic Value Outstanding at April 1, 2015 153,600 $ 6.52 7.36 $ - Granted - - Exercised - - Forfeited or Expired - - Outstanding at December 31, 2015 153,600 $ 6.52 6.61 $ - Vested at December 31, 2015 106,100 $ 6.48 5.93 $ - Exercisable at December 31, 2015 106,100 $ 6.48 5.93 $ - There were no options granted during the nine months ended December 31, 2015. During the nine months ended December 31, 2014, stock options covering 40,000 shares were granted. Outstanding options at December 31, 2015 expire between August 2020 and August 2024 and have exercise prices ranging from $5.98 to $7.00.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	5. Fair Value of Financial Instruments Fair value as defined by authoritative literature is the price that would be received to sell an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. Fair value measurements are classified and disclosed in one of the following categories: Level 1 – Quoted prices in active markets for identical assets and liabilities. Level 2 – Quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 – Significant inputs to the valuation model are unobservable. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The carrying amount reported in the accompanying consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable approximates fair value because of the immediate or short-term maturity of these financial instruments. The fair value amount reported in the accompanying consolidated balance sheets for long term debt approximates fair value because the actual interest rates do not significantly differ from current rates offered for instruments with similar characteristics and is deemed to use Level 2 inputs. See the Company’s Note 6 on Credit Facility for further discussion. The fair value of the Company’s crude oil swaps are measured internally using established commodity futures price strips for the underlying commodity provided by a reputable third party, the contracted notional volumes, and time to maturity. The valuation of the Company’s derivative instrument is deemed to use Level 2 inputs. See the Company’s Note 8 on Derivatives for further discussion.

Credit Facility

Credit Facility	9 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Credit Facility	6. Credit Facility The Company has a revolving credit agreement with Bank of America, N.A. (the “Agreement”), which provides for a credit facility of $6,300,000 with no monthly commitment reductions and a borrowing base evaluated annually, currently set at $6,300,000. Amounts borrowed under the Agreement are collateralized by the common stock of the Company’s wholly owned subsidiaries and substantially all of the Company’s oil and gas properties. The Agreement was renewed nine times with the ninth amendment on February 13, 2015, which revised the maturity date to November 30, 2020. Under the original and renewed agreements, interest on the facility accrues at an annual rate equal to the British Bankers Association London Interbank Offered Rate (“BBA LIBOR”) daily floating rate, plus 2.50 percentage points, which was 2.92% on December 31, 2015. Interest on the outstanding amount under the credit agreement is payable monthly. In addition, the Company will pay an unused commitment fee in an amount equal to ½ of 1 percent (.5%) times the daily average of the unadvanced amount of the commitment. The unused commitment fee is payable quarterly in arrears on the last day of each calendar quarter and is included in the consolidated statements of operations under the caption “General and administrative” expenses. Availability of this line of credit at December 31, 2015 was $400,000. No principal payments are anticipated to be required through November 30, 2020. The Agreement contains customary covenants for credit facilities of this type including limitations on disposition of assets, mergers and reorganizations. The Company is also obligated to meet certain financial covenants under the Agreement. The Company is in compliance with all covenants as of December 31, 2015. In addition, this Agreement prohibits the Company from paying cash dividends on our common stock. The Agreement does grant the Company permission to enter into hedge agreements; however, the Company is under no obligation to do so. The amended Agreement allows for up to $500,000 of the facility to be used for outstanding letters of credits. As of December 31, 2015, one letter of credit for $50,000, in lieu of a plugging bond with the Texas Railroad Commission (“TRRC”) covering the properties the Company operates is outstanding under the facility. This letter of credit renews annually. The Company will pay a fee in an amount equal to 1 percent (1.0%) per annum of the outstanding undrawn amount of each standby letter of credit, payable monthly in arrears, on the basis of the face amount outstanding on the day the fee is calculated and is included in the consolidated statements of operations under the caption “General and administrative” expenses. The balance outstanding on the line of credit as of December 31, 2015 was $5,850,000. The following table is a summary of activity on the Bank of America, N.A. line of credit for the nine months ended December 31, 2015: Principal Balance at April 1, 2015: $ 5,950,000 Borrowings 400,000 Repayments 500,000 Balance at December 31, 2015: $ 5,850,000 Subsequently, a payment of $50,000 was paid to the line of credit on January 29, 2016 reducing the balance on the line of credit to $5,800,000.

Income Taxes

Income Taxes	9 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income Taxes	7. Income Taxes A valuation allowance for deferred tax assets, including net operating losses, is recognized when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. To assess that likelihood, we use estimates and judgment regarding our future taxable income, and we consider the tax consequences in the jurisdiction where such taxable income is generated, to determine whether a valuation allowance is required. Such evidence can include our current financial position, our results of operations, both actual and forecasted, the reversal of deferred tax liabilities, and tax planning strategies as well as the current and forecasted business economics of our industry. Based on the material write-downs of the carrying value of our oil and natural gas properties we project being in a net deferred tax asset position at March 31, 2016. Our deferred tax asset is $655,551 as of December 31, 2015 with a valuation amount of $655,551. We believe it is more likely than not that these deferred tax assets will not be realized. Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit the use of deferred tax assets. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as future expected growth. The income tax provision consists of the following for the three and nine months ended December 31, 2015 and 2014: Three Months Ended Nine Months Ended December 31 December 31 2015 2014 2015 2014 Current income tax $ - $ - $ - $ - Deferred income tax benefit (147,539 ) (13,856 ) (660,870 ) (21,759 ) Total income tax provision: $ (147,539 ) $ (13,856 ) $ (660,870 ) $ (21,759 ) Effective tax rate (6 %) (7 %) (16 %) (24 %) The change in our effective tax rate was impacted by the application of graduated rates, permanent differences and statutory depletion for the nine months ended December 31, 2015.

Derivatives

Derivatives	9 Months Ended
	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives	8. Derivatives The Company has used price swap contracts to reduce price volatility associated with certain of its oil sales. With respect to the Company’s fixed price swap contracts, the counterparty is required to make a payment to the Company if the settlement price for any settlement period is less than the swap price, and the Company is required to make a payment to the counterparty if the settlement price for any settlement period is greater than the swap price. The Company’s derivative contracts are based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on New York Mercantile Exchange West Texas Intermediate (“NYMEX WTI”) pricing. The counterparty to the Company’s derivative contract is Merrill Lynch Commodities, Inc., which the Company believes is an acceptable credit risk. All derivative financial instruments are recorded at fair value. The Company has not designated its derivative instruments as hedges for accounting purposes and, as a result, marks its derivative instruments to fair value and recognizes the realized and unrealized changes in fair value in the consolidated statements of operations under the caption “Gain on derivative instruments.” The following summarizes the loss on derivative instruments included in the consolidated statements of operations for the three and nine months ended December 31, 2015 and 2014: Three Months Ended Nine Months Ended December 31 December 31 2015 2014 2015 2014 Unrealized gain on open non-hedge derivative instruments $ - $ 54,839 $ - $ 102,830 Gain (loss) on settlement of non-hedge derivative instruments - 25,281 - (4,959 ) Total gain on derivative instruments $ - $ 80,120 $ - $ 97,871 As of December 31, 2015 the Company does not have any open crude oil derivative positions with respect to future production.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
Related Party Transactions	9. Related Party Transactions Related party transactions for the Company relate to shared office expenditures in addition to administrative and operating expenses paid on behalf of the majority stockholder. The total billed to and reimbursed by the stockholder for the three months ended December 31, 2015 and 2014 was $31,711 and $44,869, respectively. The total billed to and reimbursed by the stockholder for the nine months ended December 31, 2015 and 2014 was $81,412 and $100,510, respectively.

Loss Per Common Share

Loss Per Common Share	9 Months Ended
	Dec. 31, 2015
Loss per common share:
Loss Per Common Share	10. Loss Per Common Share The Company’s basic net loss per share has been computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per share assumes the exercise of all stock options having exercise prices less than the average market price of the common stock during the period using the treasury stock method and is computed by dividing net loss by the weighted average number of common share and dilutive potential common shares (stock options) outstanding during the period. In periods where losses are reported, the weighted-average number of common shares outstanding excludes potential common shares, because their inclusion would be anti-dilutive. The following is a reconciliation of the number of shares used in the calculation of basic net loss per share and diluted loss per share for the three and nine month periods ended December 31, 2015 and 2014: Three Months Ended Nine Months Ended December 31 December 31 2015 2014 2015 2014 Net loss $ (2,445,536 ) $ (175,321 ) $ (3,546,209 ) $ (70,011 ) Shares outstanding: Weighted avg. common shares outstanding – basic 2,037,266 2,038,266 2,037,266 2,038,266 Effect of the assumed exercise of dilutive stock options - - - - Weighted avg. common shares outstanding – dilutive 2,037,266 2,038,266 2,037,266 2,038,266 Loss per common share: Basic $ (1.20 ) $ (0.09 ) $ (1.74 ) $ (0.03 ) Diluted $ (1.20 ) $ (0.09 ) $ (1.74 ) $ (0.03 ) Due to a net loss for the three and nine months ended December 31, 2015 and 2014, the weighted average number of common shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive.

Subsequent Events

Subsequent Events	9 Months Ended
	Dec. 31, 2015
Subsequent Events [Abstract]
Subsequent Events	11. Subsequent Events In January 2016, the Company sold its mineral interests of 18.75 net acres in Howard County, Texas for $145,000, effective February 1, 2016.

Basis of Presentation and Sig18

Basis of Presentation and Significant Accounting Policies (Policies)	9 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation
Estimates and Assumptions	Estimates and Assumptions
Interim Financial Statements	Interim Financial Statements.
Recent Accounting Pronouncements	Recent Accounting Pronouncements. In February 2015, the FASB issued ASU No. 2015-02, Topic 810: Consolidation which amends the current consolidation guidance. ASU No. 2015-02 is effective for Mexco as of April 1, 2016. Management is assessing the standard update and does not believe there will be a significant impact on our consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, Subtopic 205-40: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern which provides guidance on determining when and how reporting entities must disclose going-concern uncertainties in their financial statements. ASU No. 2014-15 is effective for Mexco for the fiscal year ending March 31, 2017 and interim periods thereafter and early adoption is permitted. Management does not expect the adoption of this ASU to have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Topic 606: Revenue from Contracts with Customers. This ASU provides guidance concerning the recognition and measurement of revenue from contracts with customers. The effective date for ASU 2014-09 was delayed through the issuance of ASU 2015-14, Revenue from Contracts with Customers – Deferral of the Effective Date, to annual and interim periods beginning in 2018 and is required to be adopted using either the retrospective or cumulative effect transition method, with early adoption permitted in 2017. Management is evaluating the effect, if any this pronouncement will have on our consolidated financial statements.

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	9 Months Ended
	Dec. 31, 2015
Asset Retirement Obligation Disclosure [Abstract]
Schedule of Rollforward of Asset Retirement Obligations	The following table provides a rollforward of the AROs for the first nine months of fiscal 2016: Carrying amount of asset retirement obligations as of April 1, 2015 $ 1,240,216 Liabilities incurred 5,097 Liabilities settled (37,744 ) Accretion expense 26,394 Carrying amount of asset retirement obligations as of December 31, 2015 1,233,963 Less: Current portion 10,000 Non-Current asset retirement obligation $ 1,223,963

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Grant-date Fair Value of Stock Options Granted Assumptions	Nine Months Ended December 31 2015 2014 Grant-date fair value - $ 5.59 Volatility factor - 76.23 % Dividend yield - - Risk-free interest rate - 2.52 % Expected term (in years) - 10
Summary of Activity of Stock Options	The following table is a summary of activity of stock options for the nine months ended December 31, 2015: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contract Life in Years Aggregate Intrinsic Value Outstanding at April 1, 2015 153,600 $ 6.52 7.36 $ - Granted - - Exercised - - Forfeited or Expired - - Outstanding at December 31, 2015 153,600 $ 6.52 6.61 $ - Vested at December 31, 2015 106,100 $ 6.48 5.93 $ - Exercisable at December 31, 2015 106,100 $ 6.48 5.93 $ -

Credit Facility (Tables)

Credit Facility (Tables)	9 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Summary of Line of Credit Activity	The following table is a summary of activity on the Bank of America, N.A. line of credit for the nine months ended December 31, 2015: Principal Balance at April 1, 2015: $ 5,950,000 Borrowings 400,000 Repayments 500,000 Balance at December 31, 2015: $ 5,850,000

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Schedule of Income Tax Provision	The income tax provision consists of the following for the three and nine months ended December 31, 2015 and 2014: Three Months Ended Nine Months Ended December 31 December 31 2015 2014 2015 2014 Current income tax $ - $ - $ - $ - Deferred income tax benefit (147,539 ) (13,856 ) (660,870 ) (21,759 ) Total income tax provision: $ (147,539 ) $ (13,856 ) $ (660,870 ) $ (21,759 ) Effective tax rate (6 %) (7 %) (16 %) (24 %)

Derivatives (Tables)

Derivatives (Tables)	9 Months Ended
	Dec. 31, 2015
Derivatives Tables
Summary of Loss on Derivative Instruments Included in Consolidated Statements of Operations	The following summarizes the loss on derivative instruments included in the consolidated statements of operations for the three and nine months ended December 31, 2015 and 2014: Three Months Ended Nine Months Ended December 31 December 31 2015 2014 2015 2014 Unrealized gain on open non-hedge derivative instruments $ - $ 54,839 $ - $ 102,830 Gain (loss) on settlement of non-hedge derivative instruments - 25,281 - (4,959 ) Total gain on derivative instruments $ - $ 80,120 $ - $ 97,871

Loss Per Common Share (Tables)

Loss Per Common Share (Tables)	9 Months Ended
	Dec. 31, 2015
Loss per common share:
Schedule of Reconciliation of Basic Net Loss Per Share and Diluted Loss Per Share	The following is a reconciliation of the number of shares used in the calculation of basic net loss per share and diluted loss per share for the three and nine month periods ended December 31, 2015 and 2014: Three Months Ended Nine Months Ended December 31 December 31 2015 2014 2015 2014 Net loss $ (2,445,536 ) $ (175,321 ) $ (3,546,209 ) $ (70,011 ) Shares outstanding: Weighted avg. common shares outstanding – basic 2,037,266 2,038,266 2,037,266 2,038,266 Effect of the assumed exercise of dilutive stock options - - - - Weighted avg. common shares outstanding – dilutive 2,037,266 2,038,266 2,037,266 2,038,266 Loss per common share: Basic $ (1.20 ) $ (0.09 ) $ (1.74 ) $ (0.03 ) Diluted $ (1.20 ) $ (0.09 ) $ (1.74 ) $ (0.03 )

Assets Retirement Obligations -

Assets Retirement Obligations - Schedule of Rollforward of Asset Retirement Obligations (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Mar. 31, 2015
Asset Retirement Obligation Disclosure [Abstract]
Carrying amount of asset retirement obligations as of April 1, 2015			$ 1,240,216
Liabilities incurred			5,097
Liabilities settled			(37,744)
Accretion expense	$ 8,797	$ 8,119	26,394	$ 17,663
Carrying amount of asset retirement obligations as of December 31, 2015	1,233,963		1,233,963
Less: Current portion	10,000		10,000
Non-Current asset retirement obligation	$ 1,223,963		$ 1,223,963		$ 1,230,216

Stock-based Compensation (Detai

Stock-based Compensation (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Recognized compensation expense	$ 23,873	$ 45,775	$ 95,770	$ 109,928
Total cost related to non-vested awards	99,836		99,836
Non vested awards not yet recognized over weighted average			2 years 2 months 1 day
Options granted number of shares				40,000
Outstanding options expiration date description			between August 2020 and August 2024
Options exercise prices range per share, minimum			$ 5.98
Options exercise prices range per share, maximum			$ 7

Stock-based Compensation - Summ

Stock-based Compensation - Summary of Grant-date Fair Value of Stock Options Granted Assumptions (Details) - $ / shares	9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Grant-date fair value		$ 5.59
Volatility factor		76.23%
Dividend yield
Risk-free interest rate		2.52%
Expected term (in years)	0 years	10 years

Stock-based Compensation - Su28

Stock-based Compensation - Summary of Activity of Stock Options (Details) - USD ($)	9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of Shares Outstanding, Beginning Balance	153,600
Number of Shares Outstanding, Granted		40,000
Number of Shares Outstanding, Exercised
Number of Shares Outstanding, Forfeited or Expired
Number of Shares Outstanding, Ending Balance	153,600
Number of Shares Outstanding, Vested	106,100
Number of Shares Outstanding, Exercisable	106,100
Weighted Average Exercise Price Per Share, Beginning Balance	$ 6.52
Weighted Average Exercise Price Per Share, Granted
Weighted Average Exercise Price Per Share, Exercised
Weighted Average Exercise Price Per Share, Forfeited or Expired
Weighted Average Exercise Price Per Share, Ending Balance	$ 6.52
Weighted Average Exercise Price Per Share, Vested	6.48
Weighted Average Exercise Price Per Share, Exercisable	$ 6.48
Weighted Aggregate Average Remaining Contract Life in Years, Beginning Balance	7 years 4 months 10 days
Weighted Aggregate Average Remaining Contract Life in Years, Ending Balance	6 years 7 months 10 days
Weighted Aggregate Average Remaining Contract Life in Years, Vested	5 years 11 months 5 days
Weighted Aggregate Average Remaining Contract Life in Years, Exercisable	5 years 11 months 5 days
Intrinsic Value, Beginning Balance
Intrinsic Value, Ending Balance
Intrinsic Value, Vested
Intrinsic Value, Exercisable

Credit Facility (Details Narrat

Credit Facility (Details Narrative) - USD ($)	Feb. 13, 2015	Dec. 31, 2015	Mar. 31, 2015
Line of credit		$ 5,850,000	$ 5,950,000
Line of credit repayment		500,000
January 29, 2016 [Member]
Line of credit repayment		50,000
Line of credit reducing balnace		$ 5,800,000
Revolving Credit Agreement [Member]
Line of credit unused commitment fee percentage		1.00%
Line of credit maximum borrowing facility		$ 500,000
Line of credit		50,000
Revolving Credit Agreement [Member] | Bank of America, N.A [Member]
Credit facility face amount		$ 6,300,000
Original and Renewed Agreements [Member]
Agreement renewed description	The Agreement was renewed nine times with the ninth amendment on February 13, 2015, which revised the maturity date to November 30, 2020.
Agreement revised maturity date	Nov. 30, 2020
Accrued interest rate description	Under the original and renewed agreements, interest on the facility accrues at an annual rate equal to the British Bankers Association London Interbank Offered Rate ("BBA LIBOR") daily floating rate, plus 2.50 percentage points, which was 2.92% on December 31, 2015.
Accrued interest rate		2.92%
Line of credit commitment fee description	the Company will pay an unused commitment fee in an amount equal to ½ of 1 percent (.5%) times the daily average of the unadvanced amount of the commitment.
Line of credit unused commitment fee percentage	1.00%
Amount available under line of credit	$ 400,000
Original and Renewed Agreements [Member] | BBA LIBOR [Member]
Accrues variable interest rate	2.50%

Credit Facility - Summary of Li

Credit Facility - Summary of Line of Credit Activity (Details)	9 Months Ended
	Dec. 31, 2015USD ($)
Debt Disclosure [Abstract]
Balance at April 1, 2015:	$ 5,950,000
Borrowings	400,000
Repayments	500,000
Balance at December 31, 2015:	$ 5,850,000

Income Taxes (Details Narrative

Income Taxes (Details Narrative)	Dec. 31, 2015USD ($)
Income Tax Disclosure [Abstract]
Deferred tax asset	$ 655,551
Valuation allovance	$ 655,551

Income Taxes - Schedule of Inco

Income Taxes - Schedule of Income Tax Provision (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Current income tax expense
Deferred income tax (benefit) expense	$ (147,539)	$ (13,856)	$ (660,870)	$ (21,759)
Total income tax provision	$ (147,539)	$ (13,856)	$ (660,870)	$ (21,759)
Effective tax rate	(6.00%)	(7.00%)	(16.00%)	(24.00%)

Derivatives - Summary of Loss o

Derivatives - Summary of Loss on Derivative Instruments Included in Consolidated Statements of Operations (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Unrealized gain on open non-hedge derivative instruments		$ 54,839		$ 102,830
Gain (loss) on settlement of non-hedge derivative instruments		25,281		(4,959)
Total gain on derivative instruments		$ 80,120		$ 97,871

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Related Party Transactions [Abstract]
Shared office expenditures in addition to administrative and operating expenses paid on behalf of the majority stockholder	$ 31,711	$ 44,869	$ 81,412	$ 100,510

Loss Per Common Share - Schedul

Loss Per Common Share - Schedule of Reconciliation of Basic Net Loss Per Share and Diluted Loss Per Share (Details) - USD ($)	3 Months Ended				9 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Loss per common share:
Net loss	$ (2,445,536)	$ (776,307)	$ (324,366)	$ (175,321)	$ (3,546,209)	$ (70,011)
Weighted avg. common shares outstanding - basic	2,037,266			2,038,266	2,037,266	2,038,266
Effect of the assumed exercise of dilutive stock options
Weighted avg. common shares outstanding - dilutive	2,037,266			2,038,266	2,037,266	2,038,266
Basic	$ (1.20)			$ (0.09)	$ (1.74)	$ (0.03)
Diluted	$ (1.20)			$ (0.09)	$ (1.74)	$ (0.03)

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - Subsequent Event [Member]	1 Months Ended
	Jan. 31, 2016USD ($)a
Area of acres net | a	18.75
Sold amount | $	$ 145,000
Effective date	Feb. 1, 2016