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Mexco Energy Corporation Announces Development Results

Posted on: Tuesday, 24 June 2008, 12:03 CDT

MIDLAND, Texas, June 24 /PRNewswire-FirstCall/ -- Mexco Energy Corporation today announced the results of further tests of a well in Reeves County, Texas.

Mexco Energy Corporation, acting as operator for an industry group, drilled a well to a depth of approximately 5,000 feet in the Bell Canyon producing zone of the Worsham Gas Field in Reeves County, Texas. The Bozeman #1 well is situated on a 320 acre drilling spacing unit in a field known for long-lived production. On June 15, 2008, the well tested at a calculated absolute open flow rate of 280,000 cubic feet of natural gas per day plus 4-5 barrels of frac water per day. It is anticipated that productivity will improve when all "load" water has been recovered. Mexco's working interest in such well is 32.5% before payout and 24.375% after payout (respectively, net revenue interests of 23.875% and 17.9063%).

Mexco Energy Corporation, a Colorado corporation, is an independent oil and gas company located in Midland, Texas engaged in the acquisition, exploration and development of oil and gas properties.

FORWARD-LOOKING STATEMENTS

Except for historical information, statements made in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and the Company's future performance are subject to a wide range of business risks and uncertainties, and there is no assurance that these goals and projections can or will be met. Actual events or results may differ materially from the forward-looking statements.

Estimates of potential typically do not take into account all the risks of drilling and completion nor do they take into account the fact that hydrocarbon volumes are never 100% recoverable. Such estimates are part of the complex process of trying to measure and evaluate risk and reward in an uncertain industry.

Any number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, production variance from expectations, volatility of oil and gas prices, the need to develop and replace reserves, the substantial capital expenditures required to fund operations, exploration risks, uncertainties about estimates of reserves, competition, government regulation, costs and results of drilling new projects, equipment availability, or other things that are associated with oil and gas production or may be beyond the control of the Company. Operations that are anticipated, planned or scheduled may be changed, delayed, take longer than expected, fail to accomplish intended results, or not take place at all. These risks and uncertainties are described in the Company's annual report on Form 10-K filed with the Securities and Exchange Commission ("SEC").

Mexco Energy Corporation

CONTACT: Tammy L. McComic, Vice President and Chief Financial Officer ofMexco Energy Corporation, +1-432-682-1119, mexco@sbcglobal.net

Source: PRNewswire-FirstCall

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