Mexco Energy updates on drilling, acquisition

Mexco Energy Corp.

Mexco Energy Corp. (NYSE MKT:MXC) has reported the drilling of certain properties in the Permian Basin of West Texas and the acquisition of producing properties in four states.

Mexco is participating as a working-interest owner in a joint venture that is drilling four vertical development wells to a depth of 11,000 feet on 160-acre spacing in the Dean, Wolfcamp, Cline and Atoka formations on 640 acres in Reagan County, Texas. Initial per day production rates from two of these wells respectively are 128 barrels of oil and 110,000 cubic feet of natural gas and 94 barrels of oil and 179,000 cubic feet of natural gas. Mexco's working interest in this joint venture is .3% (.24% net revenue interest).

The Wolfcamp formation in this area is a 1,700-foot-thick section consisting of interbedded organic shales and carbonates, and it includes two reservoir units, the "A" and "B" benches, which have both been developed with horizontal wells. These four vertical wells in Reagan County are in addition to two horizontal wells in which Mexco is participating in the same county.

For $450,000, Mexco has acquired a package of non-operated producing properties consisting of 10 oil wells and 1 gas well located in Webster Parish, Louisiana; Eddy County, New Mexico; Billings County, North Dakota; and Nolan and Smith counties, Texas. The purchase price was funded from Mexco's $4.9 million bank credit facility. 




Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...