UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1999
Commission file number 0-6994
MEXCO ENERGY CORPORATION
(Exact name of registrant as specified in its charter)
Colorado 84-0627918
(State or other jurisdiction (IRS Employer
of incorporation) Identification Number)
214 West Texas Avenue, Suite 1101, Midland, Texas 79701
(Address of principal executive offices)
(915) 682-1119
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. YES X NO
APPLICABLE ONLY TO CORPORATE ISSUERS:
State the number of shares outstanding of each of the issuer's classes of common
stock as of the latest practicable date.
Common Stock, $0.50 par value: 1,623,289 shares outstanding at October 29, 1999
MEXCO ENERGY CORPORATION
Table of Contents
Page
PART I. FINANCIAL INFORMATION
Consolidated Balance Sheets as of September 30, 1999 (Unaudited)
and March 31, 1999 3
Consolidated Statements of Operations (Unaudited) for the three and
six month periods ended September 30, 1999 and September 30, 1998 4
Consolidated Statements of Cash Flows (Unaudited) for the six month
periods ended September 30, 1999 and September 30, 1998 6
Note to Unaudited Consolidated Financial Statements 7
Management's Discussion and Analysis of Financial Condition
and Results of Operations 8
Quantitative and Qualitative Disclosures About Market Risk 12
PART II. OTHER INFORMATION 13
SIGNATURES 14
2
MEXCO ENERGY CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
September 30, March 31,
1999 1999
------------ ------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 125,673 $ 96,198
Accounts receivable:
Oil and gas sales 227,611 179,269
Trade 4,826 --
Related parties 3,905 3,780
Prepaid expenses 32,731 14,368
------------ ------------
Total current assets 394,746 293,615
Property and equipment, at cost:
Oil and gas properties and equipment,
using full cost method, pledged 10,196,682 10,495,391
Office and computer equipment and software 21,874 21,874
------------ ------------
10,218,556 10,517,265
Less accumulated depreciation, depletion
and amortization 6,974,113 6,767,865
Property and equipment, net 3,244,443 3,749,400
------------ ------------
Total assets $ 3,639,189 $ 4,043,015
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ -- $ 516,000
Accounts payable and accrued expenses 74,012 85,434
------------ ------------
Total current liabilities 74,012 601,434
Long-term debt 1,335,000 1,268,000
Stockholders' equity:
Preferred stock, par value $1 per share;
10,000,000 shares authorized; none issued -- --
Common stock, par value $0.50 per share;
40,000,000 shares authorized;
1,623,289 shares issued and outstanding 811,644 811,644
Additional paid in capital 2,875,399 2,875,399
Retained earnings (deficit) (1,456,866) (1,513,462)
------------ ------------
Total stockholders' equity 2,230,177 2,173,581
------------ ------------
Total liabilities and stockholders' equity $ 3,639,189 $ 4,043,015
============ ============
The accompanying note is an integral part
of the consolidated financial statements.
3
MEXCO ENERGY CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months ended September 30, 1999 and 1998
(Unaudited)
1999 1998
----------- -----------
Operating revenue:
Oil and gas sales $ 403,139 $ 376,602
Property operator fees 1,723 1,044
Other 942 1,268
----------- -----------
Total operating revenue 405,804 378,914
Operating costs and expenses:
Oil and gas production 128,342 192,059
Depreciation, depletion and amortization 99,950 168,464
General and administrative 56,586 59,793
----------- -----------
Total operating costs and expenses 284,878 420,316
Other income and (expenses):
Interest income 246 1,842
Interest expense (28,653) (39,871)
----------- -----------
Net other income and expenses (28,407) (38,029)
----------- -----------
Income (loss) before income taxes 92,519 (79,431)
Income tax expense -- --
----------- -----------
Net income (loss) $ 92,519 $ (79,431)
=========== ===========
Net income (loss) per share:
Basic $ 0.06 $ (0.05)
Diluted $ 0.06 $ (0.05)
Weighted average shares outstanding:
Basic 1,623,289 1,623,289
Diluted 1,623,289 1,623,289
The accompanying note is an integral part
of the consolidated financial statements.
4
MEXCO ENERGY CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Six Months ended September 30, 1999 and 1998
(Unaudited)
1999 1998
----------- -----------
Operating revenue:
Oil and gas sales $ 735,641 $ 826,097
Property operator fees 2,798 2,087
Other 1,018 2,196
----------- -----------
Total operating revenue 739,457 830,380
Operating costs and expenses:
Oil and gas production 303,451 368,442
Depreciation, depletion and amortization 206,248 664,809
General and administrative 119,496 126,208
----------- -----------
Total operating costs and expenses 629,195 1,159,459
Other income and (expenses):
Interest income 679 3,140
Interest expense (54,345) (79,019)
----------- -----------
Net other income and expenses (53,666) (75,879)
----------- -----------
Income (loss) before income taxes 56,596 (404,958)
Income tax expense -- --
----------- -----------
Net income (loss) $ 56,596 $ (404,958)
=========== ===========
Net income (loss) per share:
Basic $ 0.03 $ (0.25)
Diluted $ 0.03 $ (0.25)
Weighted average shares outstanding:
Basic 1,623,289 1,623,289
Diluted 1,623,289 1,623,289
The accompanying note is an integral part
of the consolidated financial statements.
5
MEXCO ENERGY CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months ended September 30, 1999 and 1998
(Unaudited)
1999 1998
--------- ---------
Cash flows from operating activities:
Net income (loss) $ 56,596 $(404,958)
Adjustments to reconcile net loss to
net cash provided by operating activities:
Depreciation, depletion and amortization 206,248 664,809
(Increase) decrease in accounts receivable (51,793) 6,969
Increase (decrease) in accounts payable (4,260) 39,570
Increase in prepaid assets (18,363) (6,006)
--------- ---------
Net cash provided by operating activities 188,428 300,384
Cash flows from investing activities:
Additions to property and equipment (365,885) (406,528)
Sale of property and equipment 655,932 --
--------- ---------
Net cash provided by (used in) investing activities 290,047 (406,528)
Cash flows from financing activities:
Long-term borrowings 248,174 --
Principal payments on long-term debt (697,174) --
--------- ---------
Net cash used in financing activities (449,000) --
--------- ---------
Net increase (decrease) in cash 29,475 (106,144)
Cash, beginning of the period 96,198 241,348
--------- ---------
Cash, end of period $ 125,673 $ 135,204
========= =========
Interest paid $ 55,976 $ 65,820
Income taxes paid $ -- $ --
Non-cash investing and financing activities:
Included in trade accounts payable at September 30, 1999 are capital costs
attributable to oil and gas properties of $17,879. Included in trade accounts
receivable at September 30, 1999 are proceeds from the sale of properties of
$1,500.
The accompanying note is an integral part
of the consolidated financial statements.
6
MEXCO ENERGY CORPORATION AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note A. Organization and Significant Accounting Policies
- --------------------------------------------------------
Organization and Basis of Presentation
- --------------------------------------
Mexco Energy Corporation (the "Company"), a Colorado corporation, was
organized in 1972 and maintains its principal office in Midland, Texas. The
Company and Forman Energy Corporation ("Forman"), its wholly owned subsidiary,
are engaged in the acquisition, exploration, development and production of oil
and gas. While the Company owns producing properties and undeveloped acreage in
twelve states, the majority of its activities are centered in the Permian Basin
of West Texas.
Principles of Consolidation
- ---------------------------
The accompanying consolidated balance sheets include the accounts of the
Company and its wholly owned subsidiary. All significant inter-company accounts
and transactions have been eliminated in consolidation.
In the opinion of management, the accompanying unaudited consolidated
financial statements contain all adjustments necessary to present fairly the
financial position of the Company and its wholly owned subsidiary as of
September 30, 1999, and the results of its operations and cash flows for the
interim periods ended September 30, 1999 and 1998. The results of operations for
the periods presented are not necessarily indicative of the results to be
expected for a full year. The accounting policies followed by the Company are
set forth in more detail in Note A of the "Notes to Consolidated Financial
Statements" in the Company's annual report on Form 10-K filed with the
Securities and Exchange Commission. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted in this Form 10-Q
pursuant to the rules and regulations of the Securities and Exchange Commission.
However, the disclosures herein are adequate to make the information presented
not misleading. It is suggested that these financial statements be read in
conjunction with the financial statements and notes thereto included in the Form
10-K.
7
MEXCO ENERGY CORPORATION AND SUBSIDIARY
Management's Discussion and Analysis of Financial Condition
and Results of Operations
Forward-Looking Statements
- --------------------------
Management's Discussion and Analysis of Financial Condition and Results of
Operations ("MDA") contains "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended (the "Securities Act"),
and Section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). All statements, other than statements of historical fact
included in MD&A, including statements regarding the Company's operating
strategy, plans, objectives and beliefs of management for future operations,
planned capital expenditures and acquisitions are forward-looking statements.
Although the Company believes that the assumptions upon which such
forward-looking statements are based are reasonable, it can give no assurance
that such assumptions will prove to be correct.
Liquidity and Capital Resources
- -------------------------------
Historically, the Company's sources of funding have been from operating
activities, bank financing and the issuance of common stock.
For the first six months of fiscal 1999, cash flow from operations was $188,428,
which included the effects of an increase in accounts receivable and a decrease
in accounts payable. Net cash flow was $29,475. Cash of $365,885 was used for
additions to property and equipment. Sales of the Lazy JL Field properties,
other oil and gas interests and salvaged equipment provided funds of $655,932.
Net cash of $449,000 reduced bank debt.
In September 1998, the Company, as operator, re-entered a gas well in Pecos
County, Texas at a cost of approximately $111,000. Funds for this project were
provided out of cash flow from operations and existing cash balances. A pipeline
connection was made on January 29, 1999. The Company owns a 100% working
interest and a 75.375% net revenue interest in this well. Operating cash flow
from this well was approximately $15,066 for the first six months of fiscal
2000.
In March 1999, the Company, as operator, re-entered a second gas well in Pecos
County, Texas at a cost to the Company of approximately $72,000. Funds for this
project were provided out of cash flow from operations and existing cash
balances. A pipeline connection was made on April 20, 1999. The Company owns a
97% working interest and a 70.325% net revenue interest in this well. Operating
cash flow from this well was approximately $9,325 for the first six months of
fiscal 2000. The Company installed a plunger lift system in July 1999 at a cost
of approximately $7,000.
As part of the Company's focus on increasing profit margins and concentrating on
gas reserves with low cost operations, the Company closed the sale of its Lazy
JL oil field properties in April 1999 for approximately $581,000. The Company
used the sales proceeds to reduce its debt under the credit facility discussed
below.
In April 1999, the Company acquired interests in non-producing acreage in
Schleicher County, Texas at a cost of approximately $66,000. Funds were provided
out of cash flow from operations and existing cash balances. The Company is
presently reviewing several gas re-entry prospects on this acreage.
In June 1999, the Company abandoned the Inez Fasken lease in Midland County,
Texas. Plugging costs, net of salvage, were approximately $23,000. The Company
sold equipment salvaged from this lease for approximately $16,000.
8
In July 1999, the Company acquired royalty interests in a producing gas well in
Winkler County, Texas at a cost to the Company of approximately $94,000. Funds
for this acquisition were provided by its credit facility discussed below.
Operating cash flow from this well was approximately $3,170 for the quarter
ended September 30, 1999.
In July 1999, the Company acquired working interests in and assumed operations
of two producing gas wells in Schleicher County, Texas at a cost to the Company
of approximately $138,000. Funds for this acquisition were provided by its
credit facility discussed below. The Company owns working interests of
approximately 95% and 67.444% and net revenue interests of approximately 70.015%
and 54.682%, respectively, in these wells. For the months of July and August,
the Company's average daily production from these wells was approximately 7 mcf
and 57 mcf, respectively. In September, the Company re-worked one of these wells
and increased its average daily production from 7 mcf to approximately 188 mcf,
which will decline as the reservoir is depleted over time.
The Company is reviewing several other projects in which it may participate. The
cost of such projects would be funded, to the extent possible, with existing
cash balances and cash flow from operations. The remainder may be funded through
borrowings on its bank credit facility discussed below.
At September 30, 1999, the Company had working capital of approximately $321,000
compared to negative working capital of approximately $308,000 at March 31,
1999, an increase of $629,000. This is due primarily to the reduction in current
maturities of bank debt of $516,000 and higher oil and gas prices.
The Company has a revolving credit agreement with NationsBank of Texas, N.A.
("Bank") which provides for a credit facility of $3,000,000, subject to a
borrowing base determination. The credit facility was amended on August 15, 1999
to increase the borrowing base to $2,200,000, with scheduled monthly reductions
of $28,000 per month beginning September 5, 1999, and extend the maturity date
to August 15, 2001. As of September 30, 1999, the balance outstanding under this
agreement was $1,335,000 and no required principal payments are anticipated for
fiscal 2000 or 2001. The borrowing base is subject to redetermination on or
about August 1, of each year. Amounts borrowed under this agreement are
collateralized by the common stock of Forman and the Company's oil and gas
properties. Interest under this agreement is payable monthly at prime rate
(8.25% at September 30, 1999). This agreement generally restricts the Company's
ability to transfer assets or control of the Company, incur debt, extend credit,
change the nature of the Company's business, substantially change management
personnel or pay dividends.
The prices of natural gas and crude oil have fluctuated significantly in recent
years as well as in recent months. Fluctuations in price have a significant
impact on the Company's financial condition and liquidity. However, management
is of the opinion that cash flow from operations and funds available from
financing will be sufficient to provide for its working capital requirements and
capital expenditures for the foreseeable future.
Year 2000 Issue
- ---------------
The Year 2000 problem is the result of computer systems and other equipment with
embedded logic control devices that were designed to use two digits rather than
four digits to define a year. As a result these systems and devices may be
unable to distinguish between the year 1900 and the year 2000. If not corrected,
such misinterpretations could result in systems failures or erroneous results.
9
The Company's desktop computer system is compliant, and its accounting software
vendor has modified its software to accurately handle the new century, at no
additional cost to the Company. The Company maintains very few computerized
production and metering facilities and anticipates no interruption of production
or significant expenditures associated with its own systems and devises.
The failure to correct, on a timely basis, a material Year 2000 problem could
result in an interruption in the Company's operations or business activities.
Such interruptions could have a material adverse affect on Company's results of
operations, liquidity and financial condition. To mitigate or prevent the risk
related to the Company's customers and suppliers, formal communications have
been initiated with key third parties in an attempt to ascertain their ability
to continue to meet their obligations to the Company. While some of these third
parties are more prepared than others, the Company has no reason to believe that
its key customers and suppliers will not be able to meet their obligations to
the Company. This readiness assessment will continue through 1999. The Company
cannot guarantee that all third parties of business importance will be prepared
for the Year 2000. Should circumstances warrant it, the Company will pursue
alternative sources of supply and markets. Due to the inherent uncertainty
associated with the Year 2000 issue, particularly as it relates to third party
Year 2000 readiness, the Company cannot ascertain whether the consequences of
Year 2000 failures will have a material impact on the Company's future financial
results, liquidity, condition or reporting.
The foregoing disclosure is based on the Company's current expectations, which
could ultimately prove to be inaccurate. Factors, many of which are outside the
control of the Company, include the failure of customers, suppliers,
governmental entities and others to achieve compliance and the inability or
failure to identify all critical Year 2000 issues or develop appropriate
contingency plans for all Year 2000 issues that ultimately may arise.
Results of Operations - Three Months Ended September 30, 1999 and 1998
- ----------------------------------------------------------------------
The net loss for the quarter ended September 30, 1998 was $79,431. Net income
for the quarter ended September 30, 1999 was $92,519. Individual categories of
income and expense are discussed below.
Oil and gas sales increased from $376,602 for the second quarter of fiscal 1999
to $403,139 for the same period of fiscal 2000. This increase of $26,537 or 7%
resulted primarily from higher oil and gas prices and increased gas production,
offset in part by decreased oil production. The sale of Lazy JL properties
accounts for a decrease for the second quarter of fiscal 2000 as compared to
fiscal 1999 of $82,351 in oil and gas sales, 6,373 bbls and 1,211 mcf. Normal
production declines, down time due to remedial work and the abandonment of the
Inez Fasken lease are other factors that account for declines in production. Oil
and gas production quantities were 4,586 bbls and 130,602 mcf for the second
quarter of fiscal 2000 and 12,204 bbls and 117,438 mcf for fiscal 1999, a
decrease of 7,618 bbls, or 62%, and an increase of 13,164 mcf, or 11%. The two
gas re-entries and property acquisitions discussed previously account for
increases in gas production of 16,320 mcf for the second quarter of fiscal 2000.
Average gas prices increased from $1.94 per mcf for the second quarter of fiscal
1999 to $2.41 per mcf for fiscal 2000, while average oil prices increased from
$12.20 per bbl for fiscal 1999 to $19.37 per bbl for fiscal 2000.
Production costs decreased from $192,059 for the second quarter of fiscal 1999
to $128,342 for the same period of fiscal 2000, a decrease of $63,717 or 33%.
The sale of Lazy JL properties reduced production costs for the second quarter
of 2000 as compared to fiscal 1999 by $64,006.
General and administrative expenses decreased from $59,793 for the second
quarter of fiscal 1999 to $56,586 for the same period of fiscal 2000, a decrease
of $3,207 or 5%.
10
Depreciation, depletion and amortization based on production and other methods
decreased from $168,464 for the second quarter of fiscal 1999 to $99,950 for the
same period of fiscal 2000, a decrease of $68,514 or 41%. This decrease was
primarily due to the sale of Lazy JL properties and the acquisition of oil and
gas properties discussed above.
Interest expense decreased from $39,871 for the second quarter of fiscal 1999 to
$28,653 for the same period of fiscal 2000, a decrease of $11,218 or 28%, due to
lower interest rates and reduced borrowings.
Results of Operations - Six Months Ended September 30, 1999 and 1998
- --------------------------------------------------------------------
The net loss for the six months ended September 30, 1998 was $404,958, which
included a full cost ceiling write-down of $288,393. Net income for the six
months ended September 30, 1999 was $56,596. Individual categories of income and
expense are discussed below.
Oil and gas sales decreased from $826,097 for the first six months of fiscal
1999 to $735,641 for the same period of fiscal 2000. This decrease of $90,456 or
11% resulted primarily from decreased oil production, offset in part by
increased gas production and higher oil and gas prices. The sale of Lazy JL
properties accounts for a decrease for the first six months of fiscal 2000 as
compared to fiscal 1999 of $182,328 in oil and gas sales, 13,728 bbls and 3,181
mcf. Normal production declines, down time due to remedial work and the
abandonment of the Inez Fasken lease are other factors that account for declines
in production. Oil and gas production quantities were 8,690 bbls and 265,345 mcf
for the first six months of fiscal 2000 and 26,404 bbls and 243,823 mcf for
fiscal 1999, a decrease of 17,714 bbls, or 67%, and an increase of 21,522 mcf,
or 9%. The two gas re-entries and property acquisitions discussed previously
account for increases in gas production of 32,364 mcf for the first six months
of fiscal 2000. Average gas prices increased from $2.03 per mcf for the first
six months of fiscal 1999 to $2.19 per mcf for fiscal 2000, while average oil
prices increased from $12.59 per bbl for fiscal 1999 to $17.76 per bbl for
fiscal 2000.
Production costs decreased from $368,442 for the first six months of fiscal 1999
to $303,451 for the same period of fiscal 2000, a decrease of $64,991 or 18%.
The sale of Lazy JL properties reduced production costs for the first six months
of 2000 as compared to fiscal 1999 by $148,022, while major remedial repairs,
plugging costs and costs associated with new wells increased production costs.
General and administrative expenses decreased from $126,208 for the first six
months of fiscal 1999 to $119,496 for the same period of fiscal 2000, a decrease
of $6,712 or 5%.
Depreciation, depletion and amortization based on production and other methods
decreased from $664,809 for the first six months of fiscal 1999 to $206,248 for
the same period of fiscal 2000, a decrease of $458,561 or 69%. This decrease was
primarily due a full cost ceiling write down of $288,393 in the first quarter of
fiscal 1999, the sale of Lazy JL properties in the first quarter of fiscal 2000
and the acquisition of oil and gas properties discussed above.
Interest expense decreased from $79,019 for the first six months of fiscal 1999
to $54,345 for the same period of fiscal 2000, a decrease of $24,674 or 31%, due
to lower interest rates and reduced borrowings.
11
MEXCO ENERGY CORPORATION AND SUBSIDIARY
Quantitative and Qualitative Disclosures About Market Risk
All of the Company's financial instruments are for purposes other than
trading.
Interest Rate Risk. The following table summarizes fiscal year maturities
for the Company's variable rate bank debt, which is tied to prime rate. If the
interest rate on the Company's bank debt increases or decreases by one
percentage point, the Company's annual pretax income would decrease or increase
by $13,350.
2000 2001 2002
Variable rate bank debt $ - $ - $ 1,335,000
Credit Risk. Credit risk is the risk of loss as a result of nonperformance
by counterparties of their contractual obligations. The Company's primary credit
risk is related to oil and gas production sold to various purchasers and the
receivables are generally uncollateralized. At September 30, 1999, the Company's
largest credit risk associated with any single purchaser was $46,271. The
Company has not experienced any significant credit losses.
Volatility of Oil and Gas Prices. The Company's revenues, operating results
and future rate of growth are dependent upon the prices received for oil and
gas. Historically, the markets for oil and gas have been volatile and are likely
to continue to be so in the future. Various factors beyond the control of the
Company affect the price of oil and gas, including but not limited to worldwide
and domestic supplies of oil and gas, the ability of the members of the
Organization of Petroleum Exporting Countries to agree to and maintain oil price
and production controls, political instability or armed conflict in
oil-producing regions, the price and level of foreign imports, the level of
consumer demand, the price and availability of alternative fuels, the
availability of pipeline capacity, weather conditions, domestic and foreign
governmental regulation and the overall economic environment. Any significant
decline in prices would adversely affect the Company's revenues and operating
income and may require a reduction in the carrying value of the Company's oil
and gas properties. If the average oil price for the first six months of 2000
had increased or decreased by one cent, the Company's pretax loss would have
decreased or increased by $87. If the average gas price for the first six months
of fiscal 2000 had increased or decreased by one cent, the Company's pretax loss
would have decreased or increased by $2,653.
12
PART II - OTHER INFORMATION
Item 1. Legal proceedings
None.
Item 2. Changes in securities
None.
Item 3. Defaults upon senior securities
None.
Item 4. Submission of matters to a vote of security holders
On September 15, 1999, the Annual Meeting of the Shareholders of the Company was
held in Midland, Texas, for the purpose of electing a Board of Directors.
Each of the six directors nominated by the Board of Directors was elected with
1,202,682 votes for and none against out of a total of 1,623,289 share of common
stock of the Company issued and outstanding. William G. Duncan, Jr., Thomas
Graham, Jr., Nicholas C. Taylor, Thomas R. Craddick, Jack D. Ladd and Donna Gail
Yanko were duly elected to serve as directors until the next annual meeting and
until the election of their respective successors.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
None.
13
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MEXCO ENERGY CORPORATION
(Registrant)
Dated: November 10, 1999 /s/Nicholas C. Taylor
------------------------------------------
Nicholas C. Taylor
President
Dated: November 10, 1999 /s/Linda J. Crass
------------------------------------------
Linda J. Crass
Treasurer, Controller, Assistant Secretary
14