What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2023-06-26 compared with 2022-06-27 · 100 added, 82 removed, 229 unchanged (44% of the section changed)

43 unchanged sentences

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

1983 to 2022, Mexco Energy Corporation made approximately 80 acquisitions of producing oil and gas properties including royalties, overriding

royalties, minerals and working interests plus the following most significant and recent acquisitions:

1983 to 2023, Mexco Energy Corporation made numerous acquisitions of royalties, overriding royalties, minerals and working interests

in producing oil and gas properties including the following most significant acquisitions:

interests, aggregate purchase price of approximately $501,000 covering multiple wells in the Gomez (Ellenberger) Field of Pecos County,

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

2 unchanged sentences

consisting of various mineral, royalty and overriding royalty interests.

Energy Corporation, purchase price of $1,591,000 consisting primarily of 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.

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

interests, purchase price of $200,000 covering 43 wells in 12 counties of 8 states, primarily in Texas.

Energy Corporation, purchase price of $1,591,000 consisting primarily of working interests

in approximately 634 wells located in 12 states.

interests, purchase price $304,000 covering 37 producing wells in the Cotton Valley formation

in Limestone County, Texas and the Lower Cotton Valley formation in Jackson Parish, Louisiana.

This acreage contains 13 permitted or drilling wells and approximately 100 potential undrilled

interests, purchase price $500,000 covering 4 producing gas units in Freestone County, Texas containing 33 producing wells and 17 potential

undeveloped locations in the Cotton Valley formation.

interests, purchase price $550,000 covering 75 producing wells, 9 permitted and/or drilling

wells, and 83 potential undeveloped locations in the Cotton Valley formation of Freestone

and Limestone Counties, Texas.

2007 Non-operated

working interests, purchase price $425,000 covering 2 properties in Lea County, New Mexico.

(mineral) acreage, purchase price $1,850,000 covering 122 mineral acres in the Newark East (Barnett Shale) Field of Tarrant County, Texas

amounting to approximately 21.45% royalty interest.

(mineral) acreage, purchase price $429,000 covering 522 mineral acres in the Newark East

(Barnett Shale) Field of Tarrant County, Texas containing 6 producing natural gas wells,

5 proven undeveloped well locations, and 6 potential drill sites on this acreage.

2009, purchased additional interests, $49,000.

2010 Southwest

Texas Disposal Corporation, purchase price $478,000 consisting of royalty interests in over

300 wells located in 60 counties and parishes of 6 states.

royalty interests, purchase price $1,650,000 covering 5,120 gross acres over 8 sections in the Haynesville trend area of DeSoto Parish,

Louisiana containing 6 horizontal producing wells, 2 wells drilling wells, and 57 additional potential drill sites.

The Company paid

$1.46 million in cash and the remainder was paid as 26,833 shares of its common stock issued from treasury shares.

2011 Non-operating

working interests, purchase price $670,000 covering 160 gross acres in the Fuhrman-Mascho

Field of Andrews County, Texas containing 5 producing wells in the Grayburg and San Andres

formations and additional 11 potential drill sites.

In March 2012, purchased additional working

interests, $275,000.

Oil and Gas, LLC, purchase price of $1,150,000 consisting of working interests in approximately

280 wells located in 16 counties of 3 states.

interests, purchase price $200,000 covering 43 wells in 12 counties of 8 states, primarily

interests, purchase price $580,000 covering 580 wells in 87 counties of 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 8 wells

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

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

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 which has

been completely funded.

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

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

minerals located in the state of Ohio.

As of March 31, 2022 there are 356 gross wells (2.43 net wells to the limited liability company)

of which the Company owns .38%, consisting of 346 Utica gas wells and 10 Marcellus oil wells either producing, drilling or in process.

In January 2022, the Company expended $25,000 to exercise its option to participate in the first of two optional cash calls increasing

the capitalized investment.

Subsequently, in May 2022, the Company expended $25,000 for the second optional cash call for a total

investment of $300,000.

royalty interests, purchase price of $567,000 covering 53 producing wells and several additional potential locations for development

in Atascosa and Karnes Counties, Texas.

working interests, purchase price $200,000 covering 80 wells located in Hockley and Pecos Counties, Texas.

working interests, purchase price $450,000 covering 43 wells in Webster Parish, Louisiana;

Eddy County, New Mexico;

and, Nolan and Smith

Counties, Texas.

interest investment, $300,000 for a less than 1% investment commitment in a limited liability

company, capitalized at approximately $50 million to purchase royalty interests consisting

of minerals located in the Marcellus and Utica areas of Ohio.

This LLC has returned $226,725 and 76% of the total investment since inception in fiscal 2020.

2022-2023 Overriding

royalty interests, purchase price of $567,000 covering 53 producing wells and several additional

potential locations for development in Atascosa and Karnes Counties, Texas.

interests, purchase price of $939,000 covering 22 producing wells and several additional potential locations for development in the Eagleford

area of Dimmit County, Texas.

interest investment, $2,000,000 for an approximate 2% investment commitment in a limited liability company, capitalized at approximately

$100 million to purchase royalty interests consisting of minerals located in the Marcellus and Utica areas of Ohio.

As of the date of

this report, $400,000 of the commitment has been expended.

Royalty interests, purchase price of $117,200 covering 28 producing wells in 6 counties in the Haynesville trend

area of Louisiana and 5 counties in Texas.

Environment and Outlook

1 unchanged sentence

the demand for oil throughout the world, and created significant volatility, uncertainty and turmoil in the oil and gas industry.

decrease in demand for oil, combined with pressures on the global supply-demand balance for oil and related products, resulted in oil

prices declining significantly in late February 2020.

Since mid-2020, oil prices have improved, with demand steadily increasing despite

the uncertainties surrounding the COVID-19 variants, which have continued to inhibit a full global demand recovery.

In addition, worldwide

oil inventories are, from a historical perspective, very low and supply increases from Organization of Petroleum Exporting Countries

(“OPEC”), Russia and other oil producing nations are not expected to be sufficient to meet forecasted oil demand growth in

2022 and 2023, with many OPEC countries not able to produce at their OPEC agreed upon quota levels due to their lack of capital investments

over the past few years in developing incremental oil supplies.

Global oil price levels will ultimately depend on various factors and

consequences beyond the Company’s control, such as the effectiveness of responses to combat the virus and their impact on domestic

and worldwide demand;

the ability of OPEC, Russia and other oil producing nations to manage the global oil supply;

the timing and supply

impact of any Iranian sanction relief on Iran’s ability to export oil;

additional actions by businesses and governments in response

to the pandemic;

the global supply chain constraints associated with manufacturing delays;

and, political stability of oil consuming

Also, the Russian invasion of Ukraine has caused a number of boycotts of Russian crude oil and natural gas production.

decrease in demand for oil, combined with excess supply of oil and related products, resulted in oil prices declining significantly in

late February 2020.

Since mid-2020, oil prices have improved, with demand steadily increasing despite the uncertainties surrounding the

COVID-19 variants, which have continued to inhibit a full global demand recovery.

In addition, worldwide oil inventories, from a historical

perspective, remain low and concerns exist with the ability of Organization of Petroleum Exporting Countries (“OPEC”) and

other oil producing nations to meet forecasted future oil demand growth in 2023 and 2024, with many OPEC countries not able to produce

at their OPEC agreed upon quota levels due to their limited capital investments, and increases in cost over the last few years directed towards developing incremental

oil supplies.

Part II, Item 7.

10 unchanged sentences

80% of our discounted future net cash flows from proved reserves and 79% of our gross revenues.

The Permian Basin is one of the oldest and most prolific producing basins in North America which has been a significant source of oil

production since the 1920s.

Permian Basin is one of the oldest and most prolific producing basins in North America which has been a significant source of oil production

since the 1920s.

The Permian Basin is known to have a number of zones of oil and natural gas bearing rock throughout.

1 unchanged sentence

58% of our discounted future net cash flows from proved reserves as of March 31, 2023.

For fiscal 2022, these properties accounted for 73% of our net revenues.

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

19% are attributable to proven undeveloped reserves which would be developed through new drilling.

For fiscal 2023, these properties accounted for

62% of our net revenues.

Of these discounted future net cash flows from proved reserves, approximately 15% are attributable to proven

undeveloped reserves which would be developed through new drilling.

Midland Basin properties, encompassing 97,584 gross acres, 256 net acres, 1,016 gross producing wells and 2 net wells account for approximately

18% of our discounted future net cash flows from proved reserves as of March 31, 2023.

For fiscal 2022, these properties accounted for 11% of our net revenues.

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

6% are attributable to proven undeveloped reserves which would 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 11% of our discounted future net cash flows from proved reserves as of March 31, 2022.

For fiscal 2022, these properties

accounted for 2% 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 8% are attributable to proven undeveloped reserves which would be developed through

new drilling in the horizontal Wolfcamp.

For fiscal 2023, these properties accounted for

14% of our net revenues.

Of these discounted future net cash flows from proved reserves, approximately 8% are attributable to proven

undeveloped reserves which would be developed through new drilling.

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

34 unchanged sentences

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

national and international

pandemics like the COVID-19;

domestic and foreign political conditions;

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

domestic and foreign political

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

the price of imports of oil and gas;

weather conditions;

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.

11 unchanged sentences

agencies, including the Texas Railroad Commission, the Bureau of Land Management (the “BLM”), an agency of the U.S Department

of the Interior (“DOI”), the U.S.

Environmental Protection Agency (the “EPA”) and the U.S.

Occupational Safety

and Health Administration (“OSHA”), have legal and regulatory authority and oversight over the operations on the properties

in which the Company owns an interest.

of the Interior (“DOI”), the Federal Energy Regulatory Commission (“FERC”), the U.S.

Environmental Protection

Agency (the “EPA”), the Department of Transportation (“DOT”) and the U.S.

Occupational Safety and Health Administration

(“OSHA”), have legal and regulatory authority and oversight over the operations on the properties in which the Company owns

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

63 unchanged sentences

Chief Financial Officer, Treasurer, and Assistant Secretary

and Assistant Treasurer

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

18 unchanged sentences

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

of March 31, 2022, 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.

Hardin joined the Company in 2006 and was elected Corporate Secretary of the Company in September 2021.

She has also served the Company

as Assistant Treasurer of the Company since 2010 and from 2006 to 2021 was Assistant Secretary.

Prior thereto, Ms.

Hardin served as Assistant

of March 31, 2023, we had three 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.

21 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 1. Business