What changed in this filing

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Item 1. Business

2021-06-25 compared with 2020-06-26 · 238 added, 236 removed, 61 unchanged (89% of the section changed)

Energy Corporation, a Colorado corporation, is an independent oil and gas company engaged in the exploration, development and

production of crude oil and natural gas properties located in the United States.

Energy Corporation, a Colorado corporation, is an independent oil and gas company engaged in the acquisition, exploration, development

and production of crude oil and natural gas properties located in the United States.

Incorporated in April 1972 under the name Miller

Oil Company, the Company changed its name to Mexco Energy Corporation effective April 30, 1980.

At that time, the shareholders

of the Company also approved amendments to the Articles of Incorporation resulting in a one-for-fifty reverse stock split of the

Company’s common stock.

total estimated proved reserves at March 31, 2020 were approximately 1.816 million barrels of oil equivalent (“MMBOE”)

of which 55% was oil and natural gas liquids and 45% was natural gas, and our estimated present value of proved reserves was approximately

$22 million based on estimated future net revenues excluding taxes discounted at 10% per annum, pricing and other assumptions

set forth in “Item 2 –

At that time, the shareholders of the

Company also approved amendments to the Articles of Incorporation resulting in a one-for-fifty reverse stock split of the Company’s

common stock.

total estimated proved reserves at March 31, 2021 were approximately 1.504 million barrels of oil equivalent (“MMBOE”) of

which 49% was oil and natural gas liquids and 51% was natural gas, and our estimated present value of proved reserves was approximately

$14 million based on estimated future net revenues excluding taxes discounted at 10% per annum, pricing and other assumptions set forth

in “Item 2 –

Properties”

During fiscal 2020, we added proved reserves of 119 thousand BOE (“MBOE”)

through extensions and discoveries and subtracted 136 MBOE through downward revisions of previous estimates.

Such downward revisions

are primarily the result of reserves written off due to the five-year limitation.

They are primarily royalty interests in the

Barnett Shale in Tarrant County, Texas and the Goldsmith field in Ector County, Texas, both of which are on a lease held by production

and still in place to be developed in the future.

There were also reserves written off for a working interest in the Fuhrman Mascho

Field in Andrews County, Texas due to market conditions.

These properties are also on a lease held by production and still in

place to be developed in the future.

Taylor beneficially owns approximately 46% of the outstanding shares of our common stock.

Taylor is also our Chairman of

the Board and Chief Executive Officer.

Taylor is also our Chairman of the Board

and Chief Executive Officer.

As a result, Mr.

Taylor has significant influence in matters voted on by our shareholders,

including the election of our Board members.

Taylor participates in all facets of our business and has a significant impact

on both our business strategy and daily operations.

our inception, we have been engaged in acquiring and developing oil and gas properties and the exploration for and production

of natural gas, crude oil, condensate and natural gas liquids (“NGLs”) within the United States.

We especially seek

to acquire proved reserves that fit well with existing operations or in areas where Mexco has established production.

preferably will contain most of their value in producing wells, behind pipe reserves and high quality proved undeveloped locations.

Competition for the purchase of proved reserves is intense.

Taylor has significant influence in matters voted on by our shareholders, including the

election of our Board members.

Taylor participates in all facets of our business and has a significant impact on both our business

strategy and daily operations.

our inception, we have been engaged in acquiring and developing oil and gas properties and the exploration for and production of natural

gas, crude oil, condensate and natural gas liquids (“NGLs”) within the United States.

We especially seek to acquire proved

reserves that fit well with existing operations or in areas where Mexco has established production.

Acquisitions preferably will contain

most of their value in producing wells, behind pipe reserves and high quality proved undeveloped locations.

Competition for the purchase

of proved reserves is intense.

Sellers often utilize a bid process to sell properties.

usually intensifies the competition and makes it extremely difficult to acquire reserves without assuming significant price and

production risks.

We actively search for opportunities to acquire proved oil and gas properties.

However, because the competition

is intense, we cannot give any assurance that we will be successful in our efforts during fiscal 2021.

we own oil and gas properties in other states, the majority of our activities are centered in West Texas and Southeastern New

This process usually intensifies the competition

and makes it extremely difficult to acquire reserves without assuming significant price and production risks.

We actively search for

opportunities to acquire proved oil and gas properties.

However, because the competition is intense, we cannot give any assurance that

we will be successful in our efforts during fiscal 2022.

we own oil and gas properties in other states, the majority of our activities are centered in West Texas and Southeastern New Mexico.

The Company also owns producing properties and undeveloped acreage in fourteen states.

We acquire interests in producing

and non-producing oil and gas leases from landowners and leaseholders in areas considered favorable for oil and gas exploration,

development and production.

In addition, we may acquire oil and gas interests by joining in oil and gas drilling prospects generated

by third parties.

We may also employ a combination of the above methods of obtaining producing acreage and prospects.

years, we have placed primary emphasis on the evaluation and purchase of producing oil and gas properties, including working,

royalty and mineral interests, and prospects that could have a potentially meaningful impact on our reserves.

All of the Company’s

oil and gas interests are operated by others.

1983 to 2020, Mexco Energy Corporation made approximately 80 acquisitions of producing oil and gas properties including royalties,

overriding royalties, minerals and working interests both operated and non-operated plus the following most significant and recent

acquisitions:

We acquire interests in producing and non-producing

oil and gas leases from landowners and leaseholders in areas considered favorable for oil and gas exploration, development and production.

In addition, we may acquire oil and gas interests by joining in oil and gas drilling prospects generated by third parties.

employ a combination of the above methods of obtaining producing acreage and prospects.

In recent years, we have placed primary emphasis

on the evaluation and purchase of producing oil and gas properties, including working, royalty and mineral interests, and prospects that

could have a potentially meaningful impact on our reserves.

All of the Company’s oil and gas interests are operated by others.

1983 to 2021, Mexco Energy Corporation made approximately 80 acquisitions of producing oil and gas properties including royalties, overriding

royalties, minerals and working interests both operated and non-operated plus the following most significant and recent acquisitions:

Bay Oil Company and Thompson Brothers Lumber Company, respectively dissolved in 1957 and 1947.

Purchase covering thousands

of acres located respectively in 19 counties of Texas, 3 parishes of Louisiana and one county in Arkansas and 8 counties of

Texas, respectively consisting of various mineral, royalty and overriding royalty interests.

Energy Corporation, purchase price of $1,591,000 consisting of primarily working interests in approximately 634 wells located

in 12 states.

Texas Disposal Corporation, purchase price $478,000 consisting of royalty interests in over 300 wells located in 60 counties

and parishes of 6 states.

Purchase covering thousands of acres

located respectively in 19 counties of Texas, 3 parishes of Louisiana and one county in Arkansas and 8 counties of Texas, respectively

consisting of various mineral, royalty and overriding royalty interests.

Energy Corporation, purchase price of $1,591,000 consisting of primarily working interests in approximately 634 wells located in

Texas Disposal Corporation, purchase price $478,000 consisting of royalty interests in over 300 wells located in 60 counties and

parishes of 6 states.

Oil and Gas, LLC, purchase price of $1,150,000 consisting of working interests in approximately 280 wells located in 16 counties

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interests, purchase price $580,000 covering 580 wells in 87 counties of eight states.

Approximately 90% of the net revenue from

these royalties is produced by 157 wells located in the Barnett Shale of the Fort Worth Basin of Texas.

Also included are interests

in 423 wells in 8 states.

Approximately 90% of the net revenue from these

royalties is produced by 157 wells located in the Barnett Shale of the Fort Worth Basin of Texas.

Also included are interests in 423

wells in 8 states.

working interests, purchase price $525,000 for 12.5% (approximately 10% net revenue interest).

The purchase included eight wells

producing oil on 20-acre spacing at approximately 3,600 foot depth on 190 acres in Pecos County, TX.

The purchase included eight wells producing

oil on 20-acre spacing at approximately 3,600 foot depth on 190 acres in Pecos County, TX.

and mineral interests, purchase price $1,000,000 covering approximately 1,800 wells in 27 counties of Texas.

Of these oil and

gas reserves, approximately 80% is natural gas and 20% oil.

Of these oil and gas reserves,

approximately 80% is natural gas and 20% oil.

working interests, purchase price $840,000 in 70 Natural gas producing wells located in 5 counties of Oklahoma.

April 2019, the Company made a less than 1% investment commitment in a limited liability company amounting to $250,000 of which $200,000

has been funded through March 31, 2021.

This amount is classified as an investment at cost on the Company’s consolidated balance

The limited liability company is capitalized at approximately $50 million to purchase royalty interests consisting of minerals

located in the state of Ohio.

As of March 31, 2021 there are 225 gross wells (.85 net wells) of which 215 are Utica gas wells and

10 are Marcellus oil wells either producing, drilling or in process.

Environment and Outlook

challenging commodity price environment continued in fiscal 2020 and in March 2020, commodity prices experienced extreme volatility

resulting in historic lows.

In light of these challenges facing our industry and in response to the continued challenging environment,

our primary business strategies for fiscal 2021 will continue to include:

(1) optimizing cash flows through operating efficiencies

and cost reductions, (2) divesting of non-core assets, and (3) working to balance capital spending with cash flows to minimize

borrowings, reduce debt and maintain ample liquidity.

outbreak of the novel coronavirus (“COVID-19”) in the first calendar quarter of 2020 and its continued spread across the

globe in the second, third and fourth calendar quarters of 2020 has resulted, and is likely to continue to result in, significant economic

disruption and has, and is likely to continue to, adversely affect the operations of the Company’s business, as the significantly

reduced global and national economic activity has resulted in reduced demand for oil and natural gas.

Federal, state and local governments

mobilized to implement containment mechanisms to minimize impacts to their populations and economies.

Various containment measures, which

include the quarantining of cities, regions and countries, while aiding in the prevention of further outbreak, have resulted in a severe

drop in general economic activity and a resulting decrease in energy demand.

In addition, the global economy has experienced a significant

disruption to global supply chains.

The direct impact to the Company’s operations began to take effect at the close of the fiscal

year ended March 31, 2020, and continued through the close of the Company’s third quarter of this fiscal year.

challenging commodity price environment continued in fiscal 2021 and in May 2020, commodity prices experienced extreme volatility resulting

in historic lows.

In light of these challenges facing our industry and in response to the continued challenging environment, our primary

business strategies for fiscal 2022 will continue to include:

(1) optimizing cash flows through operating efficiencies and cost reductions,

(2) divesting of non-core assets, and (3) working to balance capital spending with cash flows to minimize borrowings, reduce debt and

maintain ample liquidity.

the Company’s fourth quarter of fiscal 2021 and continuing through the first quarter of fiscal 2022, oil and natural gas prices

recovered to pre-pandemic levels, due in part to the accessibility of vaccines, reopening of states after the lockdown and optimism about

the economic recovery.

However, the continued spread of the virus, including vaccine-resistant strains, could once again reduce the demand

for oil and gas and deteriorate the oil and natural prices.

Part II, Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations for discussion of

our fiscal 2020 operating results and potential impact on fiscal 2021 operating results due to commodity price changes.

Management’s Discussion and Analysis of Financial Condition and Results of Operations for discussion of our fiscal

2021 operating results and potential impact on fiscal 2022 operating results due to commodity price changes.

and Gas Operations

of March 31, 2020, oil constituted approximately 55% of our total proved reserves and approximately 84% of our revenues for fiscal

Revenues from oil and gas royalty interests accounted for approximately 27% of our revenues for fiscal 2020.

are two primary areas in which the Company is focused, 1) the Delaware Basin located in the Western portion of the Permian Basin

including Lea and Eddy Counties, New Mexico and Loving County, Texas and 2) the Midland Basin located in the Eastern portion of

the Permian Basin including Reagan, Upton, Midland, Martin, Howard and Glasscock Counties, Texas.

The Permian Basin in total accounts

for 92% of our discounted future net cash flows from proved reserves and 78% of our gross revenues.

Delaware Basin properties, encompassing 31,165 gross acres, 213 net acres, 513 gross producing wells and 5 net wells account for

approximately 40% of our discounted future net cash flows from proved reserves as of March 31, 2020.

of March 31, 2021, oil constituted approximately 73% of our oil and gas revenues and approximately 49% of our total proved reserves for

Revenues from oil and gas royalty interests accounted for approximately 22% of our oil and gas revenues for fiscal 2021.

are two primary areas in which the Company is focused, 1) the Delaware Basin located in the Western portion of the Permian Basin including

Lea and Eddy Counties, New Mexico and Loving County, Texas and 2) the Midland Basin located in the Eastern portion of the Permian Basin

including Reagan, Upton, Midland, Martin, Howard and Glasscock Counties, Texas.

The Permian Basin in total accounts for 80% of our discounted

future net cash flows from proved reserves and 86% of our gross revenues.

Delaware Basin properties, encompassing 31,224 gross acres, 210 net acres, 526 gross producing wells and 3 net wells account for approximately

52% of our discounted future net cash flows from proved reserves as of March 31, 2021.

For fiscal 2021, these properties accounted for

66% of our gross revenues and 76% of our net revenues.

Of these discounted future net cash flows from proved reserves, approximately

11% are attributable to proven undeveloped reserves which will be developed through new drilling.

Midland Basin properties, encompassing 97,640 gross acres, 263 net acres, 981 gross producing wells and 3 net wells account for approximately

14% of our discounted future net cash flows from proved reserves as of March 31, 2021.

For fiscal 2021, these properties accounted for

14% of our gross revenues and 13% of our net revenues.

Of these discounted future net cash flows from proved reserves, approximately

9% are attributable to proven undeveloped reserves which will be developed through new drilling.

Gas Field properties, encompassing 13,058 gross acres, 72 net acres, 27 gross wells and .13 net wells in Pecos County, Texas, account

for approximately 13% of our discounted future net cash flows from proved reserves as of March 31, 2021.

For fiscal 2021, these properties

accounted for 3% of our gross revenues and 2% of our net revenues.

Of these discounted future net cash flows from proved reserves,

approximately 13% are attributable to proven undeveloped reserves which will be developed through new drilling.

March 31, 2020, the Company has 13 drilled but uncompleted wells in the Delaware Basin at an approximate aggregate drilling cost

The Company anticipates aggregate completion costs of approximately $300,000 for these wells.

Such completions will

be made as economic conditions are appropriate.

Midland Basin properties, encompassing 97,777 gross acres, 298 net acres, 1,031 gross producing wells and 3 net wells account

for approximately 41% of our discounted future net cash flows from proved reserves as of March 31, 2020.

For fiscal 2020, these

properties accounted for 22% of our gross revenues and 22% of our net revenues.

Of these discounted future net cash flows from

proved reserves, approximately 35% are attributable to proven undeveloped reserves which will be developed through new drilling.

Gas Field properties, encompassing 13,058 gross acres, 72 net acres, 27 gross wells and .13 net wells in Pecos County, Texas,

account for approximately 10% of our discounted future net cash flows from proved reserves as of March 31, 2020.

For fiscal 2020,

these properties accounted for 1% of our gross revenues and 1% of our net revenues.

All of these properties, except for one, are

royalty interests.

Of these discounted future net cash flows from proved reserves, approximately 9% are attributable to proven

undeveloped reserves which will be developed through new drilling in the horizontal Wolfcamp.

believes its most important properties for future development by horizontal drilling and hydraulic fracturing area are located

in Lea and Eddy Counties, New Mexico of the Delaware Basin and the Midland Basin in Midland, Reagan and Upton Counties, Texas.

All of these properties, except for one, are royalty interests.

these discounted future net cash flows from proved reserves, approximately 10% are attributable to proven undeveloped reserves which

will be developed through new drilling in the horizontal Wolfcamp.

believes its most important properties for future development by horizontal drilling and hydraulic fracturing area are located in Lea

and Eddy Counties, New Mexico of the Delaware Basin and the Midland Basin in Midland, Reagan and Upton Counties, Texas.

more on these and other operations in this area see “Item 7.

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Liquidity and Capital Resources Commitments”.

own partial interests in approximately 6,300 producing wells all of which are located within the United States in the states of

Texas, New Mexico, Oklahoma, Louisiana, Alabama, Mississippi, Arkansas, Wyoming, Kansas, Colorado, Montana, Virginia, North Dakota,

own partial interests in approximately 6,400 producing wells all of which are located within the United States in the states of Texas,

New Mexico, Oklahoma, Louisiana, Alabama, Mississippi, Arkansas, Wyoming, Kansas, Colorado, Montana, Virginia, North Dakota, and Ohio.

Additional information concerning these properties and our oil and gas reserves is provided below.

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Competition for oil and gas reserve acquisitions is significant.

compete with major oil and gas companies, other independent oil and gas companies and individual producers and operators, some

of which have financial and personnel resources substantially in excess of those available to us.

As a result, we may be placed

at a competitive disadvantage.

Competitive factors include price, contract terms and types and quality of service, including pipeline

distribution.

The price for oil and gas is widely followed and is generally subject to worldwide market factors.

Our ability to

acquire and develop additional properties in the future will depend upon our ability to conduct operations, to evaluate and select

suitable properties and to consummate transactions in this highly competitive environment in a timely manner.

addition, the oil and gas industry as a whole also competes with other industries in supplying the energy and fuel requirements

of industrial, commercial and individual consumers.

The price and availability of alternative energy sources could adversely affect

factors affect the quantities of oil and natural gas production and the price we can obtain for the production from our oil and

natural gas properties.

We may compete

with major oil and gas companies, other independent oil and gas companies and individual producers and operators, some of which have

financial and personnel resources substantially in excess of those available to us.

As a result, we may be placed at a competitive disadvantage.

Competitive factors include price, contract terms and types and quality of service, including pipeline distribution.

The price for oil

and gas is widely followed and is generally subject to worldwide market factors.

Our ability to acquire and develop additional properties

in the future will depend upon our ability to evaluate and select suitable properties and to consummate transactions in this highly competitive

environment in a timely manner.

addition, the oil and gas industry as a whole also competes with other industries in supplying the energy and fuel requirements of industrial,

commercial and individual consumers.

The price and availability of alternative energy sources could adversely affect our revenue.

factors affect the quantities of oil and natural gas production and the price we can obtain for the production from our oil and natural

gas properties.

Such factors include:

the extent of domestic production;

the level of imports of foreign oil and natural

the general level of market demand on a regional, national and worldwide basis;

domestic and foreign economic conditions

that determine levels of industrial production;

political events in foreign oil-producing regions like the crude oil price disputes

between Saudi Arabia and Russia;

and variations in governmental regulations including environmental, energy conservation and tax

laws or the imposition of new regulatory requirements upon the oil and natural gas industry.

the level of imports of foreign oil and natural gas;

level of market demand on a regional, national and worldwide basis;

domestic and foreign economic conditions that determine levels of

industrial production;

political events in foreign oil-producing regions like the crude oil price disputes between Saudi Arabia and Russia;

and variations in governmental regulations including environmental, energy conservation and tax laws or the imposition of new regulatory

requirements upon the oil and natural gas industry.

market for our oil, gas and natural gas liquids production depends on factors beyond our control including:

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domestic and foreign political conditions;

the overall level of supply of and demand for oil, gas

and natural gas liquids;

the overall level of supply of and demand for oil, gas and natural

the price of imports of oil and gas;

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the price and availability of alternative fuels;

the proximity and capacity of gas pipelines and other transportation facilities;

the proximity

and capacity of gas pipelines and other transportation facilities;

and overall economic conditions.

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credit risk does not exist.

Because a ready market exists for oil and gas production, we do not believe the loss of any individual

customer would have a material adverse effect on our financial position or results of operations.

Because a ready market exists for oil and gas production, we do not believe the loss of any individual customer

would have a material adverse effect on our financial position or results of operations.

Environmental

exploration and development of crude oil and natural gas properties are subject to existing stringent and complex federal, state

and local laws (including case law) and regulations governing health, safety, environmental quality and pollution control.

to comply with these laws, rules and regulations, however, may result in the assessment of administrative, civil or criminal penalties;

the imposition of investigatory or remedial obligations;

and the issuance of injunctions limiting or preventing some or all of

the operations on the properties in which the Company owns an interest.

certain environmental laws and regulations, the operators of the Company properties could be subject to strict, joint and several

liability for the removal or remediation of property contamination, whether at a drill site or a waste disposal facility, even

when the operators did not cause the contamination or their activities were in compliance with all applicable laws at the time

the actions were taken.

The Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), also

known as the “superfund”

law, for example, imposes liability, regardless of fault or the legality of the original

conduct, on certain classes of persons for releases into the environment of a “hazardous substance.”

Liable persons

may include the current or previous owner and operator of a site where a hazardous substance has been disposed and persons who

arranged for the disposal of a hazardous substance at a site.

Under CERCLA and similar statutes, government authorities or private

parties may take actions in response to threats to the public health or the environment or sue responsible persons for the associated

In the course of operations, the working interest owner and/or the operator of the Company properties may have generated

and may generate materials that could trigger cleanup liabilities.

In addition, the Company properties have produced oil and/or

natural gas for many years, and previous operators may have disposed or released hydrocarbons, wastes or hazardous substances

at the Company properties.

The operator of the Company properties or the working interest owners may be responsible for all or

part of the costs to clean up any such contamination.

Although the Company is not the operator of such properties, its ownership

of the properties could cause it to be responsible for all or part of such costs to the extent CERCLA or any similar statute imposes

responsibility on such parties as “owners.”

state governments and regional organizations comprising state governments already have enacted legislation and promulgated rules

restricting greenhouse gases (“GHGs”) emissions or promoting the use of renewable energy, and additional such measures

are frequently under consideration.

Although it is not possible at this time to estimate how potential future requirements addressing

GHG emissions would impact operations on the Company properties and revenue, either directly or indirectly, any future federal,

state or local laws or implementing regulations that may be adopted to address GHG emissions could require the operators of our

properties to incur new or increased costs to obtain permits, operate and maintain equipment and facilities, install new emission

controls, acquire allowances to authorize GHG emissions, pay taxes related to GHG emissions or administer a GHG emissions program.

Regulation of GHGs could also result in a reduction in demand for and production of oil and natural gas.

Additionally, to the

extent that unfavorable weather conditions are exacerbated by global climate change or otherwise, the Company properties may be

adversely affected to a greater degree than previously experienced.

exploration and development of crude oil and natural gas properties are subject to existing stringent and complex federal, state and

local laws (including case law) and regulations governing health, safety, environmental quality and pollution control.

Failure to comply

with these laws, rules and regulations, however, may result in the assessment of administrative, civil or criminal penalties;

the imposition

of investigatory or remedial obligations;

and the issuance of injunctions limiting or preventing some or all of the operations on the

properties in which the Company owns an interest.

certain environmental laws and regulations, the operators of the Company properties could be subject to strict, joint and several liability

for the removal or remediation of property contamination, whether at a drill site or a waste disposal facility, even when the operators

did not cause the contamination or their activities were in compliance with all applicable laws at the time the actions were taken.

Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), also known as the “superfund”

law, for example, imposes liability, regardless of fault or the legality of the original conduct, on certain classes of persons for releases

into the environment of a “hazardous substance.”

Liable persons may include the current or previous owner and operator of

a site where a hazardous substance has been disposed and persons who arranged for the disposal of a hazardous substance at a site.

CERCLA and similar statutes, government authorities or private parties may take actions in response to threats to the public health or

the environment or sue responsible persons for the associated costs.

In the course of operations, the working interest owner and/or the

operator of the Company properties may have generated and may generate materials that could trigger cleanup liabilities.

the Company properties have produced oil and/or natural gas for many years, and previous operators may have disposed or released hydrocarbons,

wastes or hazardous substances at the Company properties.

The operator of the Company properties or the working interest owners may be

responsible for all or part of the costs to clean up any such contamination.

Although the Company is not the operator of such properties,

its ownership of the properties could cause it to be responsible for all or part of such costs to the extent CERCLA or any similar statute

imposes responsibility on such parties as “owners.”

state governments and regional organizations comprising state governments already have enacted legislation and promulgated rules restricting

greenhouse gases (“GHGs”) emissions or promoting the use of renewable energy, and additional such measures are frequently

under consideration.

Although it is not possible at this time to estimate how potential future requirements addressing GHG emissions

would impact operations on the Company properties and revenue, either directly or indirectly, any future federal, state or local laws

or implementing regulations that may be adopted to address GHG emissions could require the operators of our properties to incur new or

increased costs to obtain permits, operate and maintain equipment and facilities, install new emission controls, acquire allowances to

authorize GHG emissions, pay taxes related to GHG emissions or administer a GHG emissions program.

Regulation of GHGs could also result

in a reduction in demand for and production of oil and natural gas.

Additionally, to the extent that unfavorable weather conditions are

exacerbated by global climate change or otherwise, the Company properties may be adversely affected to a greater degree than previously

did not incur any material capital expenditures for remediation or pollution control activities for the year ended March 31, 2021.

Additionally, as of the date of this report, we are not aware of any environmental issues or claims that will require material

capital expenditures during fiscal 2021.

Additionally,

as of the date of this report, we are not aware of any environmental issues or claims that will require material capital expenditures

during fiscal 2022.

to Properties

leasehold properties we own are subject to royalty, overriding royalty and other outstanding interests customary in the industry.

The properties may be subject to burdens such as liens incident to operating agreements and current taxes, development obligations

under oil and gas leases and other encumbrances, easements and restrictions.

We do not believe any of these burdens will materially

interfere with the use of these properties.

is customary in the oil and gas industry, only a preliminary title examination is conducted at the time properties believed to

be suitable for drilling operations are acquired by us.

Prior to the commencement of drilling operations, a thorough title examination

of the drill site tract is conducted and curative work is performed with respect to significant defects, if any, before proceeding

with operations.

A thorough title examination has been performed with respect to substantially all leasehold producing properties

currently owned by us.

We believe the title to our leasehold properties is good and defensible in accordance with standards generally

acceptable in the oil and gas industry subject to such exceptions that, in the opinion of counsel employed in the various areas

in which we have conducted exploration activities, are not so material as to detract substantially from the use of such properties.

properties may be subject to burdens such as liens incident to operating agreements and current taxes, development obligations under

oil and gas leases and other encumbrances, easements and restrictions.

We do not believe any of these burdens will materially interfere

with the use of these properties.

to drilling of an oil and natural gas well, it is normal practice in our industry for the person or company acting as the operator of

the well to obtain a preliminary title review to ensure there are no obvious defects in title to the well.

Frequently, as a result of

such examinations, certain curative work must be done to correct defects in the marketability of the title, and such curative work entails

Our operators’

failure to cure any title defects may delay or prevent us from utilizing the associated mineral interest.

We believe the title to our properties is good and defensible in accordance with standards generally acceptable in the oil and gas industry

subject to such exceptions that, in the opinion of counsel employed in the various areas in which we have activities, are not so material

as to detract substantially from the use of such properties.

Substantially

all of our properties are currently mortgaged under a deed of trust to secure funding through a line of credit.

operations are subject to all the risks inherent in the exploration for and development and production of oil and gas including

blowouts, fires and other casualties.

We maintain insurance coverage customary for operations of a similar nature, but losses

could arise from uninsured risks or in amounts in excess of existing insurance coverage.

all of our properties are currently mortgaged under a deed of trust to secure funding through a credit facility.

operations are subject to all the risks inherent in the exploration for and development and production of oil and gas including blowouts,

fires and other casualties.

We maintain insurance coverage customary for operations of a similar nature, but losses could arise from

uninsured risks or in amounts in excess of existing insurance coverage.

following table sets forth certain information concerning the executive officers of the Company as of March 31, 2021.

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President and Secretary

forth below is a description of the principal occupations during at least the past five years of each executive officer of the

Taylor was elected Chairman of the Board and Chief Executive Officer of the Company in September 2011 and continues to serve

in such capacity on a part time basis, as required.

He served as Chief Executive Officer, President and Director of the Company

from 1983 to 2011.

forth below is a description of the principal occupations during at least the past five years of each executive officer of the Company.

Taylor was elected Chairman of the Board and Chief Executive Officer of the Company in September 2011 and continues to serve in such

capacity on a part time basis, as required.

He served as Chief Executive Officer, President and Director of the Company from 1983 to

From July 1993 to the present, Mr.

Taylor has been involved in the independent practice of law and other business

In November 2005 he was appointed by the Speaker of the House to the Texas Ethics Commission and served until February

McComic, a Certified Public Accountant, became Controller for the Company in July 2001 and was elected President and Chief

Financial Officer in September 2011.

She served the Company as Executive Vice President and Chief Financial Officer from 2009

to 2011 and Vice President and Chief Financial Officer from 2003 to 2009.

Taylor has been involved in the independent practice of law and other business activities.

November 2005 he was appointed by the Speaker of the House to the Texas Ethics Commission and served until February 2010.

McComic, a Certified Public Accountant and Chartered Global Management Accountant, became Controller for the Company in July 2001

and was elected President and Chief Financial Officer in September 2011.

She served the Company as Executive Vice President and Chief

Financial Officer from 2009 to 2011 and Vice President and Chief Financial Officer from 2003 to 2009.

Prior thereto, Ms.

McComic served as Treasurer and Assistant

Secretary of the Company.

McComic served

as Treasurer and Assistant Secretary of the Company.

Gail Yanko was appointed to the position of Vice President of the Company in 1990.

She has also served as Corporate Secretary

since 1992 and from 1986 to 1992 was Assistant Secretary.

From 1986 to 2015, on a part-time basis, she assisted the Chairman of

the Board of the Company in his personal business activities.

She has also served as Corporate Secretary since 1992

and from 1986 to 1992 was Assistant Secretary.

From 1986 to 2015, on a part-time basis, she assisted the Chairman of the Board of the

Company in his personal business activities.

Yanko also served as a director of the Company from 1990 to 2008.

of March 31, 2020, we had two full-time and four part-time employees.

We believe that relations with these employees are generally

satisfactory.

From time to time, we utilize the services of independent geological, land and engineering consultants on a limited

basis and expect to continue to do so in the future.

We also utilize the services of independent contractors to perform well drilling

and production operations, including pumping, maintenance, inspection and testing.

of March 31, 2021, we had two full-time and three part-time employees.

We believe that relations with these employees are generally satisfactory.

From time to time, we utilize the services of independent geological, land and engineering consultants on a limited basis and expect

to continue to do so in the future.

principal offices are located at 415 W.

3 unchanged sentences

Energy Corporation files annual, quarterly and current reports, proxy statements and other information with the SEC.

the SEC at 1-800-SEC-0330 for information on the public reference room.

The SEC maintains an internet website (www.sec.gov) that

contains annual, quarterly and current reports, proxy statements and other information that issuers, including Mexco, file electronically

with the SEC.

The SEC maintains

an internet website (www.sec.gov) that contains annual, quarterly and current reports, proxy statements and other information that issuers,

including Mexco, file electronically with the SEC.

also maintain an internet website at www.mexcoenergy.com.

In the Investor Relations section, our website contains our Annual Reports

on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other reports and amendments to those reports as

soon as reasonably practicable after such material is electronically filed with the SEC.

Information on our website is not incorporated

by reference into this Form 10-K and should not be considered part of this report or any other filing that we make with the SEC.

Additionally, our Code of Business Conduct and Ethics and the charters of our Audit Committee, Compensation Committee and Nominating

Committee are posted on our website.

Any of these corporate documents as well as any of the SEC filed reports are available in

print free of charge to any stockholder who requests them.

Requests should be directed to our corporate Assistant Secretary by

Box 10502, Midland, Texas 79702 or by email to mexco@sbcglobal.net.

on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other reports and amendments to those reports as soon

as reasonably practicable after such material is electronically filed with the SEC.

Information on our website is not incorporated by

reference into this Form 10-K and should not be considered part of this report or any other filing that we make with the SEC.

Additionally,

our Code of Business Conduct and Ethics and the charters of our Audit Committee, Compensation Committee and Nominating Committee are

posted on our website.

Any of these corporate documents as well as any of the SEC filed reports are available in print free of charge

to any stockholder who requests them.

Requests should be directed to our corporate Secretary by mail to P.O.

Box 10502, Midland, Texas

79702 or by email to mexco@sbcglobal.net.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business