Mexco Energy Corporation Announces Royalty Purchase
MIDLAND, Texas, Jan. 14 /PRNewswire-FirstCall/ -- Mexco Energy Corporation
(AMEX:MXC) announced today that the Company purchased for $550,000 partially
developed royalty interests. The majority of the wells are located in
Freestone and Limestone Counties, Texas and operated by Anadarko Petroleum,
XTO, and Devon Energy. These properties contain 71 producing wells and an
additional nine (9) permitted and/or drilling wells in the Cotton Valley
formation. This acreage contains approximately 83 potential undeveloped
locations, which are principally Cotton Valley infill wells. This purchase
furthers the primary goal of the Company acquiring natural gas reserves. Previous acquisitions of partially developed royalty interests generally have
provided high yield and high quality reserves at favorable fixed costs to the
Company. As of March 31, 2004, approximately 17% of the Company's revenues
were from royalty interests. DATASOURCE: Mexco Energy Corporation CONTACT: Tammy L. McComic, Vice President of Finance of Mexco Energy Corporation, +1-432-682-1119
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