MIDLAND, Texas, March 22, 2012 /PRNewswire/ -- Mexco Energy Corporation (AMEX: MXC) (the "Company") announced an increased drilling program of 91 infill wells in the Dodd-Federal Unit in the Grayburg San Andres Jackson Field of Eddy County, New Mexico. Of these wells, 37 have been drilled, 42 vertical and 2 horizontal will be drilled in the Paddock formation, 1 vertical in the San Andres and 9 horizontal in the Blinebry. The unit, operated by Concho Resources, Inc., currently contains approximately 117 producing wells. The Company's working interest in this unit is .1848% (.14% net revenue interest).
The Company also announced the purchase of an additional 5% for a total of approximately 16% working interest (11.4% net revenue interest) in 160 gross acres in the Fuhrman-Mascho Field of
Andrews County, Texas. The approximate purchase price of
$275,000 was funded primarily from its
$4.9 million credit facility and the balance from working capital.
This acreage now contains seven oil wells - four producing oil from the San Andres formation and three producing oil from the Grayburg and San Andres formations at an approximate depth of 5,000 feet. All of these wells are operated by Cone and Petree Oil & Gas Exploration, Inc.
This property contains an additional 9 potential drill sites in the Grayburg and San Andres formations. The Fuhrman-Mascho Field of
Andrews County, Texas was discovered in 1930. This field currently contains approximately 2400 producing wells. Cumulative production from the field to date is approximately 122 million barrels of oil and 122 billion cubic feet of gas.
"These properties are significant additions to our program for development of oil reserves," said Nicholas C. Taylor, Chairman and CEO of Mexco.