Mexco Energy Corp. issued an operational update on the company’s oil and gas operations in the United States, where it is active in developing various formations in the Permian Basin.
Mexco Energy closed on the sale of a partial interest in leasehold in West Texas to Energen Corporation. The company received cash consideration of $450,000 in exchange for a five year lease on 200 acres.
Mexco Energy said that the company retained an 8.33% royalty interest in the lease, which is located in Loving County, Texas. The company believes that the lease is prospective for a number of oil and gas bearing formations including the Avalon and Bone Springs.
Mexco Energy also announced that the company will be involved in future infill drilling at the Grayburg San Andres Jackson Field located in Eddy County, New Mexico. The drilling be conducted at the Dodd-Federal Unit and will target the Yeso and Paddock formations.
Concho Resources is the operator of the Dodd-Federal Unit and plans to drill 59 wells here over the next twelve months. Mexco Energy will have a 0.1848% working interest in the wells.
For more information on the company, go to www.mexcoenergy.com