What changed in this filing

/stocks — the workspaceLOADING

Item 2. Properties

2022-06-27 compared with 2021-06-25 · 38 added, 37 removed, 140 unchanged (35% of the section changed)

properties consist primarily of oil and gas wells and our ownership in leasehold acreage, both developed and undeveloped.

31, 2021, we had interests in approximately 6,400 gross (20 net) oil and gas wells and owned leasehold mineral, royalty and other interests

in approximately 586,000 gross (3,169 net) acres.

31, 2022, we had interests in approximately 6,300 gross (18.5 net) producing oil and gas wells and owned leasehold mineral, royalty and

other interests in approximately 539,000 gross (2,970 net) acres.

and Natural Gas Reserves

accordance with current SEC rules, the average prices used in computing reserves at March 31, 2022 were $74.52 per bbl of oil compared

to $53.23 in 2020, a decrease of 30%, and $2.29 per mcf of natural gas compared to $1.66 in 2020, an increase of 38%, such prices are

to $37.42 in 2021, an increase of 99%, and $4.60 per mcf of natural gas compared to $2.29 in 2021, an increase of 101%, such prices are

based on the 12-month unweighted arithmetic average market prices for sales of oil and natural gas on the first calendar day of each

7 unchanged sentences

revenues attributable to our oil and gas reserves, present value of future net revenues discounted at 10% and changes therein, see Notes

to the Company’s consolidated financial statements.

reserves are estimated reserves of crude oil (including condensate and natural gas liquids) and natural gas that geological and engineering

4 unchanged sentences

a relatively major expenditure is required to establish production.

engineering report with respect to Mexco’s estimates of proved oil and gas reserves as of March 31, 2021 and 2020 is based on evaluations

engineering report with respect to Mexco’s estimates of proved oil and gas reserves as of March 31, 2022 and 2021 is based on evaluations

prepared by Russell K.

Hall and Associates, Inc.

Environmental Engineering Consultants, based in Midland, Texas (“Hall and Associates”),

a summary of which is filed as Exhibit 99.1 to this annual report.

32 unchanged sentences

ended March 31 are summarized below.

Proved developed –

Non-producing

Proved developed – Producing

Proved developed – Non-producing

Proved undeveloped

Natural gas (Mcf):

Proved developed –

Non-producing

Proved developed – Producing

Proved developed – Non-producing

Proved undeveloped

6 unchanged sentences

Oil (per Bbl)

reserve estimates do not include the Company’s interest in the LLC referred to in Item 1.

Business –

Company Profile

reserve estimates do not include the Company’s interest in the LLC referred to in Item 1.

Business – Company Profile

on page 4 hereto.

21 unchanged sentences

transactions.

fiscal 2021, we added proved reserves of 139 thousand BOE (“MBOE”) through extensions and discoveries, subtracted 23 MBOE

through sales of oil and gas properties and downward revisions of previous estimates of 324 MBOE.

Such downward revisions are primarily

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

They are primarily working interests in a unit in the Wolfcamp B

Zone in Upton and Reagan Counties, Texas which are on a lease held by production and still in place to be developed in the future.

fiscal 2022, we added proved reserves of 307 thousand BOE (“MBOE”) through extensions and discoveries, added 21 MBOE through

acquisitions, subtracted 2 MBOE through sales of oil and gas properties and downward revisions of previous estimates of 86 MBOE.

downward revisions are primarily the result of reserves written off due to the five-year limitation and the change in the timing of new

They are primarily working interests on a lease in Reagan County, Texas which are held by production and still in place

to be developed in the future and royalty interests on a lease held by production in Upton County, Texas.

the fiscal year ending March 31, 2022, we had a working or royalty interest in the development of 42 wells converting reserves of approximately

83,200 BOE from proved undeveloped to proved developed –

producing with capital cost of approximately $947,000.

88,000 BOE from proved undeveloped to proved developed – producing with capital cost of approximately $771,000.

and gas prices significantly impact the calculation of the PV-10 and the standardized measure of discounted future net cash flows.

present value of future net cash flows does not purport to be an estimate of the fair market value of the Company’s proved reserves.

An estimate of fair value would also take into account, among other things, anticipated changes in future prices and costs, the expected

4 unchanged sentences

The 10% discount factor used to calculate present value, which is required by Financial

Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 932, “Extractive Activities

Oil and Gas”, may not necessarily be the most appropriate discount rate.

Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 932, “Extractive Activities

– Oil and Gas”, may not necessarily be the most appropriate discount rate.

The present value, no matter what discount rate

6 unchanged sentences

Exploratory Wells

Nonproductive

Beginning wells in progress

Successful wells

Ending wells in progress

Development Wells

Productive - Horizontal

Productive - Vertical

Nonproductive - Vertical

Beginning wells in progress

Successful wells

Ending wells in progress

information contained in the foregoing table should not be considered indicative of future drilling performance, nor should it be assumed

1 unchanged sentence

be recovered by us.

The net numbers above represent Mexco’s working interest in the gross wells.

addition to the working interests mentioned above, other operators drilled 66 gross wells (.04 net wells) on company-owned minerals and

royalties at no expense to the Company.

We expect the production of our mineral interests will increase as operators continue to drill,

complete and develop our acreage.

We expect to capitalize on this development, which requires no capital expenditure funding from us,

and believe the anticipated aggregate royalty receipts will enable us to grow our cash flows.

A number of the horizontal wells in which

the Company participates involve longer lateral which are more efficient and have greater estimated ultimate recovery.

Wells and Acreage

2 unchanged sentences

in more than one producing zone are counted as one well.

As of March 31, 2021, we held an interest in approximately 6,400 gross (20 net)

productive wells, including approximately 5,100 wells in which we held an overriding or royalty interest and 1,100 wells in which we

held a working interest.

As of March 31, 2022, we held an interest in approximately 6,300 gross (18.5

net) productive wells, including approximately 5,200 wells in which we held an overriding or royalty interest and 1,100 wells in which

we held a working interest.

gross acre is an acre in which an interest is owned.

4 unchanged sentences

sets forth the approximate developed acreage in which we held a leasehold mineral or other interest as of March 31, 2022:

Developed Acres

Production, Unit Prices and Costs

following table summarizes our net oil and natural gas production, the average sales price per barrel (“bbl”) of oil and

per thousand cubic feet (“mcf”) of natural gas produced and the average production (lifting) cost per unit of production

following table summarizes our net oil and natural gas production, the average sales price per barrel (“bbl”) of oil and

per thousand cubic feet (“mcf”) of natural gas produced and the average production (lifting) cost per unit of production

for the years ended March 31:

19 unchanged sentences

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 2. Properties