Mexco Energy Corporation reported net income of $221,114 for the quarter ending December 31, 2007, the Company's third quarter of fiscal 2008, compared to net income of $67,080 for the same quarter of fiscal 2007, an increase of 230 percent. Earnings per share for the third quarter of fiscal 2008 were $.12 per diluted share compared to $.04 per diluted share in fiscal 2007.
Nicholas C. Taylor, President and CEO of Mexco Energy Corporation, said, "In all respects our third quarter ending December 31, 2007 showed improvement in oil and gas prices and volumes resulting in a tripling of earnings over the comparable quarter last year."
Operating revenues increased $291,882 or 44% to $955,080 in the third quarter of fiscal 2008 from $663,198 for the same period of fiscal 2007. The average sales price received of $8.23 per Mcfe was up 37% from the $6.00 per Mcfe received in the third quarter of fiscal 2008. Oil production increased 7% and gas production increased 4% during the third quarter of fiscal 2008 as compared to the third quarter of fiscal 2007.
The Company continues to focus a substantial portion of its efforts on the acquisition of royalties in areas with significant development potential. For the three month period ending December 31, 2007 revenues from oil and gas royalty interests accounted for approximately 21% of the Company's revenues, compared to approximately 24% for the three month period ending December 31, 2006.
Taylor continued, "On the last day of the quarter we completed the largest acquisition of gas properties in the Company's history. This $1,850,000 purchase is producing income free of capital and operating expenses, amounting to an approximate 22% royalty in three wells in the Newark East (Barnett Shale) Field. These wells are operated by Chesapeake Energy Corporation in one of the largest gas fields in Texas."
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