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Dutton Associates Featured Company: Mexico Energy Corp. (MXC)

Mexico Energy Corporation is an independent oil and gas company, which together with its subsidiaries, engages in the acquisition, exploration, development, and production of oil and gas properties in the United States. Most of its business is located in west Texas. The company was incorporated in April 1972 under the name Miller Oil Company, and changed its name to Mexico Energy Corporation effective April 30, 1980.

The company’s long-term strategy is to increase shareholder value by increasing oil and natural gas reserves, production and revenues. In addition to exploration, the company also engages in acquiring proven reserves that fit well within existing operations or in areas where the company is establishing new operations. Preferred properties with proven reserves have most of their value in producing wells, or high quality proven undeveloped locations, and understandably, competition for these proven reserves is intense. Sellers often utilize a bid process to sell properties, which intensifies the competition and makes it extremely difficult to acquire reserves in a low risk manner.

The majority of the company’s activities are located in West Texas, though it owns properties in many states. It acquires interests in producing and non-producing oil and gas leases from landowners and leaseholders in areas that are considered favorable for oil and gas exploration, development and production. In addition, the company acquires oil and gas interests by joining in oil and gas drilling prospects generated by third parties. The company also employs any combination of these methods to obtain oil and gas producing properties. In recent years, the company has emphasized the analysis of the oil and gas producing properties, including both operating and royalty interests, that might meaningfully affect its reserves.

Let us hear your thoughts: Mexico Energy Corp. Message Board

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