MEXCO ENERGY CORP

Our properties consist primarily of oil and gas wells and ownership interests in leasehold acreage, both developed and undeveloped. As of March 31, 2026, we had interests in approximately 8,100 gross (26.1 net) producing oil and gas wells and owned leasehold mineral, royalty and other interests in approximately 705,000 gross (2,697 net) acres.

Oil and Natural Gas Reserves

In accordance with current SEC rules, the average prices used in computing reserves at March 31, 2026 were $62.76 per bbl of oil compared to $73.79 in 2025, a decrease of 15%, and $2.24 per mcf of natural gas compared to $2.14 in 2025, an increase of 5%. These prices are based on the 12-month unweighted arithmetic average of the first-day-of-the-month market prices for oil and natural gas sales during fiscal 2026. The benchmark price of $59.79 per bbl of oil at March 31, 2026 versus $71.00 at March 31, 2025, was adjusted by lease for gravity, transportation fees and market differentials and did not give effect to derivative transactions. The benchmark price of $3.72 per mcf of natural gas at March 31, 2026 versus $2.44 at March 31, 2025, was adjusted by lease for BTU content, transportation fees and market differentials.

For information concerning our costs incurred for oil and gas operations, net revenues from oil and gas production, estimated future net revenues attributable to our oil and gas reserves, the present value of future net revenues discounted at 10%, and related changes, see the Notes to the Company’s consolidated financial statements.

Proved oil and natural gas reserves are those quantities of oil and gas that, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible under existing economic and operating conditions. Proved developed reserves are those expected to be recovered from existing wells, equipment, and operating methods. Proved undeveloped reserves are those expected to be recovered from new wells on undrilled acreage or from existing wells requiring significant additional investment to establish production.

Mexco’s proved reserves as of March 31, 2026 and 2025 were prepared by Russell K. Hall and Associates, Inc., Environmental Engineering Consultants (“Hall and Associates”), an independent petroleum engineering firm located in Midland, Texas. A summary of their report is filed as Exhibit 99.1 to this Annual Report.

Management is responsible for providing accurate technical and operating data to Hall and Associates and for maintaining internal controls over the reserve estimation process to provide reasonable assurance that proved reserve estimates are calculated in accordance with SEC rules. Our Chief Financial Officer reviews the final reserves estimate and consults with Alan Neal, the representative at Hall and Associates responsible for evaluating the proved reserves covered by this report. Our Chairman and Chief Executive Officer also reviews the final reserves report.

Estimates of proved reserves are inherently imprecise and subject to change as additional data becomes available. These estimates are based on engineering and geological interpretation and require assumptions regarding production rates, future development costs, operating expenses, and commodity prices. Actual results will vary from these estimates, and such variances could be material and may adversely affect future cash flows, results of operations, and capital resources.

In accordance with SEC rules, reserve estimates and related present value calculations use the 12-month unweighted arithmetic average of the first-day-of-the-month prices for oil and natural gas. Prices are held constant over the economic life of the properties. Actual future prices and costs may differ materially from those used in these estimates. Unless replaced through acquisitions, successful exploration, or development activities, proved reserves will decline as production occurs.

Our estimated proved oil and gas reserves and present value of estimated future net revenues from proved oil and gas reserves in the periods ended March 31 are summarized below.

PROVED RESERVES

During fiscal 2026, we added proved reserves of 247 thousand BOE (“MBOE”) through extensions and discoveries, added 39 MBOE through acquisitions, and added 53 MBOE for upward revisions of previous estimates. Such upward revisions are primarily attributable to improved well performance, revisions to estimated future recoveries based on additional production history, and changes in the timing of future development activities. The reduction in proved undeveloped reserves was primarily attributable to properties in Lea County, New Mexico, due to changes in the timing of future development in wells in which we own a working interest. These interests are held by production and remain in place for future development.

During the fiscal year ending March 31, 2026, we had a working or royalty interest in the development of 25 wells, converting reserves of approximately 48,000 BOE from proved undeveloped to proved developed – producing with a capital cost of approximately $119,000.

Oil and natural gas prices significantly impact the calculation of PV-10 and the standardized measure of discounted future net cash flows. These measures do not represent an estimate of the fair value of the Company’s proved reserves. Any estimate of fair value would also consider, among other factors, expected changes in future prices and costs, recovery of reserves beyond proved reserves, and a discount rate more reflective of the time value of money and associated risks.

Future prices and costs may differ materially from those used in these estimates. The 10% discount rate required by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 932,Extractive Activities—Oil and Gas, may not be the most appropriate rate for all purposes. In addition, the present value calculations are highly sensitive to assumptions regarding the timing of future production, which may prove inaccurate.

We have not filed any other oil or gas reserve estimates or included any such estimates in reports to other federal or foreign governmental authorities or agencies during the year ended March 31, 2026, and no major discovery is believed to have caused a significant change in our estimates of proved reserves since that date.

Drilling Activities

The following table sets forth our drilling activity in wells in which we own a working interest for the years ended March 31:

The information contained in the foregoing table should not be considered indicative of future drilling performance, nor should it be assumed that there is any necessary correlation between the number of productive wells drilled and the amount of oil and gas that may ultimately be recovered by us.

In addition to the working interests mentioned above, other operators drilled 177 gross wells (.07 net wells) on Company-owned minerals and royalties at no expense to the Company. We expect production from our mineral interests to 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 laterals that are more efficient and have greater estimated ultimate recovery.

Productive Wells and Acreage

Productive wells consist of producing wells and wells capable of production, including gas wells awaiting pipeline connections. Wells that are completed in more than one producing zone are counted as one well. As of March 31, 2026, we held an interest in approximately 8,100 gross (26.1 net) productive wells, including approximately 7,000 wells in which we held an overriding or royalty interest and 1,100 wells in which we held a working interest.

A gross acre is an acre in which an interest is owned. A net acre is deemed to exist when the sum of fractional ownership interests in gross acres equals one. The number of net acres is the sum of the fractional interests owned in gross acres. The following table sets forth the approximate developed acreage in which we held a leasehold mineral or other interest as of March 31, 2026:

Net Production, Unit Prices and Costs

The 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: