MIDLAND, Texas, Aug. 13, 2013 /PRNewswire/ -- Mexco Energy Corporation (AMEX:MXC) today announced developments regarding certain oil and gas properties in Texas and Oklahoma.
Mexco received $625,995 in cash from Pioneer Natural Resources Company for the assignment of a three year term leasehold interest in 417.33 net acres (837.33 gross acres) at $1,500 per acre in Upton County, Texas. Mexco retained a 1% royalty. This interest has potential for oil production from the horizontal Wolfcamp trend of the Permian Basin in West Texas.
Mexco also announced participation as a working interest co-owner with EOG Resources, Inc. as Operator in drilling three horizontal wells in the Wolfcamp formation of the Lin Field of Reagan County, Texas. Based on a report from the operator, these new oil wells are potentialed at an average rate per well of 373 barrels of 42 gravity oil and .43 million cubic feet of natural gas per day. Mexco's working interest in these wells is .809% (net revenue interest of .606%).
Mexco also announced it participated as a working interest co-owner with Mewbourne Oil Company as operator in drilling the second and third horizontal wells in a 640 acre unit in the Cottage Grove formation of Ellis County, Oklahoma. Based on a report from the operator, these new wells potentialed at a average rate per well of 583 barrels of oil and 1.75 million cubic feet of natural gas per day. The initial well potentialed at the rate of 1,178 barrels of oil and 3.997 million cubic feet of gas per day. Mexco's working interest in these wells is 1.2% (net revenue interest of .8901%).The rates at which these will be produced and sold may be substantially different, based on regulatory and engineering considerations as well as performance of the wells over longer periods of time.