Company Profile: Mexco Energy Corporation (MEXC)

Mexco Energy Corporation is an independent oil and gas company engaged in the acquisition, exploration and development of oil and gas properties located in the United States. Its objective is to acquire and develop primarily gas properties with potential for long-lived production. It has set standards at a very high level with the emphasis on quality rather than quantity.

While the Company owns oil and gas properties in other states, the majority of its activities are centered in West Texas. The Company acquires interests in producing and non-producing oil and gas leases form landowners and leaseholders in areas considered favorable for oil and gas explorations, development and production. In addition, the Company may acquire oil and gas interests by joining in oil and gas drilling prospects generated by third parties. The Company may employ a combination of the above methods of obtaining producing acreage and prospects. In recent years, the Company has placed primary emphasis on the evaluation and purchase of producing oil and gas properties and re-entry prospects.

As of March 31, 2001, gas reserves constituted approximately 82% of the Company's total proved reserves and approximately 83% of the Company's revenues for fiscal 2001. Revenues for oil and gas royalty interests accounted for approximately 16% of the Company's revenues for fiscal 2001.

The following table indicates the Company's oil and gas production and proved reserves in each of the last five years, all of which is located within the United States:

	Oil (Bbls)		Gas (Mcf)
Year	Production	Reserves	Production	Reserves
2001	18,545	235,000	503,773	6,345,000
2000	19.334	139,000	540,793	4,755,000
1999	49,573	194,000	482,948	4,194,000
1998	63,800	246,000	432,343	3,197,000
1997	39,363	436,000	236,034	2,956,000

Mexco has experienced a stable growth in both gas production and gas reserves over the last five years, excluding the gas production from 2000 - 2001, which declined by 7%, mainly as a result of overproducing in a field in 2000 to realize additional cash due to higher than normal gas prices.

The Company seeks to maintain a favorable debt to equity ratio. The Company incurred debt in 1997 to purchase all of the outstanding common stock of Forman Energy Corporation. During the years 1998 and 1999 the Company participated in the drilling of several new wells and became more aggressive in both acquisition and development. The Company has a revolving $5 million credit agreement with Bank of America, N.A., and as of September 30, 2001, the balance outstanding under this agreement was $1 million.

The Company has assembled an experienced team of geologists, engineers, landmen, and accountants to evaluate any prospect or acquisition the Company may be considering. It is the goal of the Company to increase production and reserves at a cost that produces the greatest returns on investment and with potential for long-lived production. The Company's average profit percentage on revenues as of March 31, 2001 was 50%. In addition, Mexco has maintained a favorable return on average stockholders equity. As of March 31, 2001 it had a 47% return on average stockholders equity.