(By Balachander) Mexco Energy Corp. (NYSEAMEX: MXC) said it has acquired ownership interests of a limited liability company which owns non-operated working interests in over 200 wells producing primarily oil.
The Midland, Texas-based oil and gas company said the consideration of $1.15 million was funded from its $4.9 million bank credit facility.
The properties are located in 16 counties of Texas, New Mexico and North Dakota.
"This primarily established production is located in the Permian Basin of West Texas and Southeastern New Mexico as well as North Dakota," said Mexco CFO Tammy McComic. "We also see opportunities for further horizontal drilling and development on certain of these properties in the Bakken of North Dakota, and Wolfcamp, Avalon and Bone Springs of Texas and New Mexico."
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The company is engaged in acquiring and developing oil and gas properties and the exploration for and production of oil and gas. Mexco focuses primarily on the exploration for and development primarily of natural gas reserves and secondarily oil reserves.
All of Mexco's oil and gas assets are located in the United States and all of its revenue are derived from sales to customers within the United States, primarily in the Permian Basin of West Texas.
The stock, which has been trading in the 52-week range of $4.50 to $11.48, traded 7.39 percent higher at $5.74 on Friday.