Mexco Energy Corporation Announces Purchase of Oil and Gas Properties; Appoints Christopher M. Schroeder to Board of Directors, Membership on the Audit, Compensation and Nominating Committees, Effective November 1, 2014
October 30, 2014 at 05:08 pm EDT
Share
Mexco Energy Corporation announced the purchase of various royalty interests at a price of $1,000,000 covering approximately 1,800 wells in 27 counties of Texas. Of these oil and gas reserves, approximately 77% is natural gas and 23% oil. The company believes that there is potential for further development of a number of these royalties especially through horizontal and vertical drilling and fracturing. These royalty interests are free of expenses to the company for drilling and operations. Also the company announced the purchase for $525,000; 12.5% (approximately 10% net revenue interest) long lived non-operated working interests. Six wells are producing oil from the Lower Tubb formation in Pecos County, Texas. These wells are on 20-acre spacing with four additional proven undeveloped locations at approximately 3,600 foot depth on the 190 acres. The operator has agreed to pay for the drilling and completion costs of one additional well and fracture treatment of one of the existing wells, as well as pay all operating expenses of all wells on these leases. In addition, the company will receive 100% of the gross disposal fees from one disposal well located on these properties paid by an adjacent operator. The company would be responsible for payment of the cost of drilling and completion on the balance of any development wells.
Also, the company reported the Board of Directors appointed Christopher M. Schroeder to the company's Board of Directors as well as to membership on the Audit, Compensation and Nominating Committees effective November 1, 2014. Mr. Schroeder is expected to stand for election at the 2015 Annual Meeting of Shareholders on September 15, 2015 for a term of one year. Currently, Mr. Schroeder is an adviser to Silicon Valley venture capital firms. He serves on several academic and global boards including The American University of Cairo School of Business, The American University School of International Service, and The American Council on Germany, among others.
Mexco Energy Corporation, through its subsidiaries, are engaged in the acquisition, exploration, development and production of crude oil, natural gas, condensate and natural gas liquids (NGLs). The Company owns producing properties and undeveloped acreage in approximately 14 states. It acquires interests in producing and non-producing oil and gas leases from landowners and leaseholders in areas considered favorable for oil and gas exploration, development, and production. There are two primary areas in which the Company is focused, namely the Delaware Basin located in the Western portion of the Permian Basin including Lea and Eddy Counties, New Mexico and Reeves and Loving Counties, Texas and the Midland Basin located in the Eastern portion of the Permian Basin, including Reagan, Upton, Midland, Martin, Howard and Glasscock Counties, Texas. The Company's subsidiaries include Forman Energy Corporation, Southwest Texas Disposal Corporation, and TBO Oil & Gas, LLC.
Mexco Energy Corporation Announces Purchase of Oil and Gas Properties; Appoints Christopher M. Schroeder to Board of Directors, Membership on the Audit, Compensation and Nominating Committees, Effective November 1, 2014