UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549

                                    FORM 10-Q

              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 2001

                          Commission file number 0-6994


                            MEXCO ENERGY CORPORATION
             (Exact name of registrant as specified in its charter)



             Colorado                                  84-0627918
       (State or other jurisdiction                  (IRS Employer
           of incorporation)                      Identification Number)


             214 West Texas Avenue, Suite 1101, Midland, Texas 79701
                    (Address of principal executive offices)


                                 (915) 682-1119
              (Registrant's telephone number, including area code)


     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. YES X NO


                      APPLICABLE ONLY TO CORPORATE ISSUERS:

     State the number of shares  outstanding of each of the issuer's  classes of
common stock as of the latest practicable date.

                         Common Stock, $0.50 par value:
                  1,610,133 shares outstanding at June 30, 2001



<PAGE>


                            MEXCO ENERGY CORPORATION


                                Table of Contents
                                -----------------
                                                                      Page
                                                                      ----

PART I.  FINANCIAL INFORMATION
-------------------------------
      Consolidated Balance Sheets as of June 30, 2001 (Unaudited)
      and March 31, 2001                                                3

      Consolidated Statements of Operations (Unaudited) for the
      three months ended June 30, 2001 and June 30, 2000                4

      Consolidated Statements of Cash Flows (Unaudited) for the
      three months ended June 30, 2001 and June 30, 2000                5

      Notes to Unaudited Consolidated Financial Statements              6

      Management's Discussion and Analysis of Financial Condition
      and Results of Operations                                         7

      Quantitative and Qualitative Disclosures About Market Risk       10


PART II.  OTHER INFORMATION                                            11
---------------------------

SIGNATURES                                                             12
----------


                                     Page 2
<PAGE>


                     MEXCO ENERGY CORPORATION AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS


                                                June 30,              March 31,
                                                 2001                    2001
                                           -------------          -------------
                                            (Unaudited)
ASSETS
------
Current assets:
   Cash and cash equivalents               $      77,919          $     378,816
   Accounts receivable:
     Oil and gas sales                           313,735                489,217
     Trade                                         6,481                  1,074
     Related parties                               2,689                  8,059
   Prepaid expenses                              108,947                 74,342
                                           -------------          --------------
       Total current assets                      509,771                951,508

   Property and equipment, at cost:
   Oil and gas properties and equipment,
     using full cost method, pledged          12,393,675             11,557,980
   Office and computer equipment
     and software                                 23,600                 23,600
                                           -------------          --------------
                                              12,417,275             11,581,580
   Less accumulated depreciation,
     depletion and amortization                7,662,923              7,571,728
                                           -------------          --------------
       Property and equipment, net             4,754,352              4,009,852
                                           -------------          --------------
   Total assets                            $   5,264,123          $   4,961,360
                                           =============          ==============


   LIABILITIES AND STOCKHOLDERS' EQUITY
   Current liabilities:
   Accounts payable and accrued expenses   $     197,422          $      77,776
   Income taxes payable                             -                    51,637
                                           -------------          --------------
       Total current liabilities                 197,422                129,413

   Long-term debt                                600,000                600,000

   Deferred income tax liability                 209,030                185,495

   Stockholders' equity:
   Preferred stock, par value $1 per share;
     10,000,000 shares authorized;
       none issued                                  -                      -
   Common stock, par value $0.50 per share;
     40,000,000 shares authorized; 1,621,387
     shares issued                               810,693                810,693
   Additional paid in capital                  2,912,464              2,900,097
   Retained earnings                             606,106                407,254
   Treasury stock, at cost                       (71,592)               (71,592)
                                           -------------          --------------
       Total stockholders  equity              4,257,671              4,046,452
                                           -------------          --------------
   Total liabilities and stockholders
     equity                                $   5,264,123          $   4,961,360
                                           =============          ==============



                    The accompanying note is an integral part
                    of the consolidated financial statements.

                                   Page 3
<PAGE>

                     MEXCO ENERGY CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                For the Three Months ended June 30, 2001 and 2000
                                   (Unaudited)



                                                 2001                    2000
                                           -------------          --------------

Operating revenue:
   Oil and gas sales                       $     594,751          $     592,807
   Other                                           1,708                  1,470
                                           -------------          --------------
      Total operating revenue                    596,459                594,277

Operating costs and expenses:
   Oil and gas production                        157,403                 91,293
   Depreciation, depletion and amortization       91,196                112,000
   General and administrative                    114,167                 85,042
                                           -------------          --------------
      Total operating costs and expenses         362,766                288,335
                                           -------------          --------------
                                                 233,693                305,942
Other income and (expenses):
   Interest income                                   257                    316
   Interest expense                              (10,529)               (27,822)
                                           -------------          --------------
      Net other income and expenses              (10,272)               (27,506)
                                           -------------          --------------
Income (loss) before income taxes                223,421                278,436

Income tax expense                                24,569                   -
                                           -------------          --------------
Net income (loss)                          $     198,852          $     278,436
                                           =============          ==============

Net income (loss) per share:
   Basic                                   $        0.12          $        0.17
   Diluted                                 $        0.12          $        0.17

Weighted average shares outstanding:
   Basic                                       1,610,133              1,623,293
   Diluted                                     1,610,133              1,623,293



                    The accompanying note is an integral part
                    of the consolidated financial statements.

                                     Page 4
<PAGE>
                     MEXCO ENERGY CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                For the Three Months ended June 30, 2001 and 2000
                                   (Unaudited)


                                                 2001                    2000
                                           -------------          --------------
Cash flows from operating activities:
   Net income                              $     198,852          $     278,436
   Adjustments to reconcile net income
     to net cash provided by operating
     activities:
     Deferred income taxes                        23,535                   -
     Stock-based compensation                     12,367                   -
     Depreciation, depletion and
         amortization                             91,196                112,000
     (Increase) decrease in
         accounts receivable                     175,445                (90,382)
     Increase (decrease) in
         accounts payable                         13,222                (14,908)
     Increase in prepaid assets                  (34,605)                (9,095)
     Decrease in income taxes payable            (51,637)                  -
                                           -------------          --------------
     Net cash provided by operating
           activities                            428,375                276,051

Cash flows from investing activities:
   Additions to property and equipment          (729,272)              (208,150)
      Net cash used in investing           -------------          --------------
           activities                           (729,272)              (208,150)

Cash flows from financing activities:
   Principal payments on long-term debt             -                   (50,000)
                                           -------------          --------------
     Net cash used in financing activities          -                   (50,000)
                                           -------------          --------------

Net increase (decrease) in cash                 (300,897)                17,901

Cash, beginning of the period                    378,816                 97,712
                                           -------------          --------------
Cash, end of period                        $      77,919          $     115,613
                                           =============          ==============

Interest paid                              $      11,688          $      27,775
Income taxes paid                          $      53,664          $        -


                   The accompanying note is an integral part
                    of the consolidated financial statements.

                                     Page 5
<PAGE>


                     MEXCO ENERGY CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)


Note A.    Organization and Significant Accounting Policies
-------    ------------------------------------------------

      Organization and Basis of Presentation
      --------------------------------------

     Mexco Energy Corporation, a Colorado corporation, was organized in 1972 and
maintains its  principal  office in Midland,  Texas.  The Company and its wholly
owned subsidiary,  Forman Energy  Corporation,  (collectively the "Company") are
engaged in the acquisition,  exploration,  development and production of oil and
gas. While the Company owns  producing  properties  and  undeveloped  acreage in
eleven states,  the majority of its activities are centered in the Permian Basin
of West Texas. Although most of the Company's oil and gas interests are operated
by others, the Company operates several properties in which it owns an interest.

     In the  opinion of  management,  the  accompanying  unaudited  consolidated
financial  statements  contain all  adjustments  necessary to present fairly the
financial position of the Company and its wholly owned subsidiary as of June 30,
2001, and the results of its  operations and cash flows for the interim  periods
ended  June 30,  2001 and  2000.  The  results  of  operations  for the  periods
presented  are not  necessarily  indicative  of the results to be expected for a
full year. The accounting policies followed by the Company are set forth in more
detail in Note A of the  "Notes to  Consolidated  Financial  Statements"  in the
Company's  annual  report on Form 10-K filed with the  Securities  and  Exchange
Commission.  Certain information and footnote  disclosures  normally included in
financial  statements  prepared in accordance with generally accepted accounting
principles  have been  condensed  or omitted in this Form 10-Q  pursuant  to the
rules and regulations of the Securities and Exchange  Commission.  However,  the
disclosures   herein  are  adequate  to  make  the  information   presented  not
misleading.  It  is  suggested  that  these  financial  statements  be  read  in
conjunction with the financial statements and notes thereto included in the Form
10-K.

Principles of Consolidation
---------------------------

     The  accompanying  consolidated  balance sheets include the accounts of the
Company and its wholly owned subsidiary.  All significant inter-company accounts
and transactions have been eliminated in consolidation.

Income Taxes
------------

     During the quarter ended June 30, 2001 the Company's tax provision was less
than  expected at statutory  rates  because of statutory  depletion in excess of
cost basis and the effect of graduated rates.  During the quarter ended June 30,
2000 the  Company  had no  provision  for  income  taxes due to a  reduction  in
valuation allowance for deferred tax assets.

                                     Page 6

<PAGE>


                     MEXCO ENERGY CORPORATION AND SUBSIDIARY
         Management's Discussion and Analysis of Financial Condition and
                             Results of Operations


Forward-Looking Statements
--------------------------
Management's  Discussion  and  Analysis of  Financial  Condition  and Results of
Operations ("MDA") contains  "forward-looking  statements" within the meaning of
Section 27A of the  Securities Act of 1933, as amended (the  "Securities  Act"),
and  Section  21E of the  Securities  Exchange  Act of  1934,  as  amended  (the
"Exchange  Act").  All  statements,  other than  statements of  historical  fact
included  in  MD&A,  including  statements  regarding  the  Company's  operating
strategy,  plans,  objectives and beliefs of management  for future  operations,
planned capital  expenditures and acquisitions are  forward-looking  statements.
Although   the  Company   believes   that  the   assumptions   upon  which  such
forward-looking  statements are based are  reasonable,  it can give no assurance
that such assumptions will prove to be correct.

Liquidity and Capital Resources
-------------------------------
Historically,  the  Company's  sources  of  funding  have  been  from  operating
activities, bank financing and the issuance of common stock.

The Company's focus is on increasing  profit margins while  concentrating on gas
reserves with low cost operations.

For the first  three  months  of fiscal  2002,  cash  flow from  operations  was
$428,375, which included the effects of a decrease in accounts receivable and an
increase in accounts  payable.  Net cash flow was a negative  $300,897.  Cash of
$729,272 was used for additions to property and equipment.

In fiscal 2001,  the board of directors  authorized the purchase of up to 25,000
shares of the Company's common stock, and the Company repurchased 13,160 shares,
at an aggregate  cost of $84,934.  For fiscal 2002,  the board of directors  has
authorized  the use of up to  $250,000  to  repurchase  shares of the  Company's
common stock.

During fiscal 2000, the Company entered into an exploration  agreement  relating
to non-producing acreage in Pecos County, Texas. Approximately 3,795 gross acres
and 432 net acres have been leased and a 3-D seismic  survey  covering 23 square
miles has been completed at a cost to the Company of approximately $155,000. Two
test  wells  were  drilled  on this  acreage.  The  first  test  well  has  been
temporarily  abandoned at a cost to the Company of  approximately  $85,000.  The
second  test  well has been  drilled,  plugged  and  abandoned  at a cost to the
Company of approximately $44,000.  Pending further evaluation of the information
gathered from these wells,  additional  wells may be drilled on these prospects.
The Company owns approximate  working  interests in these prospects ranging from
10.41% to 15.51% and a third party conducts operations.

                                     Page 7
<PAGE>
Effective September 1, 2000, the Company acquired three producing  properties in
Pecos  County,  Texas for  $198,000  cash,  adjusted  for  revenues and expenses
through  September  28,  2000,  the date of closing.  The Company  owns  working
interests ranging from 97% to 99% and, as operator of the six producing wells on
these  properties,  is  evaluating  the  workover,   recompletion  and  re-entry
potential of these  properties.  Operating  cash flow from these  properties was
approximately  $91,000 for the nine months ended June 30,  2001.  In January and
again in May and June 2001, workovers were performed on three of these producing
wells,  increasing  production  at a total cost to the Company of  approximately
$66,000.

Effective September 1, 2000, the Company leased 159 gross non-producing acres in
Pecos County,  Texas, in which it retained a 96% working interest,  at a cost of
approximately $27,500. In June 2001, the Company re-entered an abandoned well on
this acreage  which will be  completed  in August 2001 at an  estimated  cost of
$115,000.  The  performance of this well will be determined  after hookup of the
well to a gas gathering facility which is pending.

On September 5, 2000, the Company  acquired a 50% working interest and operating
rights in approximately 107 gross non-producing acres in Coke County,  Texas for
approximately $11,400. The recompletion of the well on this acreage, which began
on January 31, 2001, was unsuccessful and the well has been abandoned, at a cost
to the Company to date of approximately $23,000.

On October 31, 2000, the Company  acquired a 12.5% working interest in 400 gross
non-producing  acres in Nolan County,  Texas for $11,750. A third party operator
completed  an oil well was on this  acreage in May 2001 at a cost to the Company
of approximately $55,000.

Effective  December 1, 2000, the Company  acquired a 1.345% royalty  interest in
proven  acreage in Limestone  County,  Texas for cash of $33,000.  A replacement
well was successfully completed on this acreage in February 2001.

Effective  January 1, 2001,  the Company  acquired  royalty  interests  totaling
0.209%  in  producing  acreage  in Ward  County,  Texas for  $65,700.  There are
presently two producing gas wells on this acreage.

On April 30,  2001,  the  Company  acquired  a  0.0164%  royalty  interest  in a
producing  gas unit  containing  9,538  acres in Reagan and Upton  Counties  for
$12,500.

In April 2001,  the Company  acquired  additional  joint  venture  interests  in
properties  located in various  counties and states for  $174,000,  adjusted for
revenues and expenses from January 1, 2001,  the effective  date,  through April
29, 2001, date of closing.

In May 2001,  the  Company  acquired  a 12.5%  working  interest  and 9.375% net
revenue  interest  in 8,934 acres in Edwards  County,  Texas for  $125,400.  The
initial test well was drilled on this acreage by a third party operator. In July
2001, this well was completed, fraced, and is currently being evaluated.

                                     Page 8

<PAGE>
In June 2001, the Company assumed  operations and acquired an approximate 88.35%
working  interest and 62.7285% net revenue  interest in a producing  gas well in
Hutchinson  County,  Texas for $36,860,  adjusted for revenues and expenses from
April 1, 2001,  the  effective  date.  The Company  also  acquired  non-operated
working  interests,  ranging  from  .8512% to 3.75% with net  revenue  interests
ranging from .6816% to 3.267%, in 21 producing and 7 inactive wells in Limestone
and Freestone Counties,  Texas for $200,000,  adjusted for revenues and expenses
from April 1, 2001, the effective date.

The Company is reviewing several other projects in which it may participate. The
cost of such projects  would be funded,  to the extent  possible,  with existing
cash balances and cash flow from operations. The remainder may be funded through
borrowings on its bank credit facility discussed below.

At June 30,  2001,  the Company had working  capital of  approximately  $312,000
compared  to working  capital of  approximately  $822,000 at March 31,  2001,  a
decrease of $510,000,  due  primarily to lower oil and gas prices and  increased
expenditures.

The Company's  revolving credit agreement with Bank of America,  N.A.  ("Bank"),
was  amended  to  provide  for a credit  facility  of  $5,000,000,  subject to a
borrowing  base  determination.  The borrowing base was increased to $3,500,000,
with scheduled monthly reductions of the available borrowing base of $49,000 per
month beginning  September 5, 2001, and the maturity date was extended to August
15, 2003. As of June 30, 2001, the balance  outstanding under this agreement was
$600,000.  No required  principal  payments are  anticipated  for fiscal 2002. A
letter of credit for $50,000, in lieu of a plugging bond with the Texas Railroad
Commission  covering the properties the Company  operates,  is also  outstanding
under the facility. The borrowing base is subject to redetermination on or about
August 1, of each year. Amounts borrowed under this agreement are collateralized
by the common stock of Forman and the Company's oil and gas properties. Interest
under this agreement is payable  monthly at prime rate (6.75% at June 30, 2001).
This agreement  generally  restricts the Company's ability to transfer assets or
control of the  Company,  incur debt,  extend  credit,  change the nature of the
Company's business, substantially change management personnel or pay dividends.

The prices of natural gas and crude oil have fluctuated  significantly in recent
years as well as in recent  months.  Fluctuations  in price  have a  significant
impact on the Company's financial condition and liquidity.  However,  management
is of the  opinion  that cash  flow from  operations  and funds  available  from
financing will be sufficient to provide for its working capital requirements and
capital expenditures for the current fiscal year.

Results of Operations - Three Months Ended June 30, 2001 and 2000
-----------------------------------------------------------------
Net income  decreased  from  $278,436  for the  quarter  ended June 30,  2000 to
$198,852  for the  quarter  ended June 30,  2001,  a decrease of $79,584 or 29%.
Individual categories of income and expense are discussed below.

                                     Page 9

<PAGE>
Oil and gas sales  increased  from $592,807 for the first quarter of fiscal 2001
to $594,751 for the same period of fiscal 2002. This increase of $1,944 resulted
primarily  from  higher  gas  prices  and  increased  production  from  property
acquisitions discussed above, offset in part by declines in production and lower
oil prices.  Oil and gas production  quantities were 4,757 barrels  ("bbls") and
142,807  thousand  cubic feet  ("mcf") for the first  quarter of fiscal 2001 and
4,492 bbls and 111,253 mcf for fiscal 2002, a decrease of 265 bbls, or 6%, and a
decrease of 31,554 mcf, or 22%.  Average gas prices increased from $3.25 per mcf
for the first  quarter of fiscal  2001 to $4.35 per mcf for fiscal  2002,  while
average oil prices  decreased  from $26.90 per bbl for fiscal 2001 to $24.69 per
bbl for fiscal 2002.

Production  costs increased from $91,293 for the first quarter of fiscal 2001 to
$157,403 for the same period of fiscal 2002, an increase of $66,110 or 72%. This
increase is primarily due to nonrecurring remedial repairs in fiscal 2002.

General and administrative expenses increased from $85,042 for the first quarter
of fiscal 2001 to $114,167  for the same period of fiscal  2002,  an increase of
$29,125 or 34%.  Increases  in  consulting,  engineering  and  geological  costs
($5,437), salary costs and contract services ($5,095), franchise taxes ($2,865),
and legal fees ($2,854),  and  compensation  related to stock options granted to
consultants ($12,367) account for this.

Depreciation,  depletion and amortization  based on production and other methods
decreased  from $112,000 for the first quarter of fiscal 2001 to $91,196 for the
same  period of fiscal  2002,  a decrease  of $20,804  or 19% due  primarily  to
increased reserve amounts resulting from higher gas prices.

Interest expense  decreased from $27,822 for the first quarter of fiscal 2001 to
$10,529 for the same period of fiscal  2002,  a decrease of $17,293 or 62%,  due
primarily to lower interest rates and decreased borrowings outstanding.

           Quantitative and Qualitative Disclosures About Market Risk

     All of the  Company's  financial  instruments  are for purposes  other than
trading.

     Interest Rate Risk. The following table  summarizes  fiscal year maturities
for the Company's  variable rate bank debt,  which is tied to prime rate. If the
interest  rate  on  the  Company's  bank  debt  increases  or  decreases  by one
percentage  point,  the  Company's  annual pretax income would change by $6,000.

                                           2002          2003          2004
                                        ---------     ---------     ---------

         Variable rate bank debt        $     -       $ 600,000    $      -

     Credit Risk.  Credit risk is the risk of loss as a result of nonperformance
by counterparties of their contractual obligations. The Company's primary credit
risk is related to oil and gas  production  sold to various  purchasers  and the
receivables  are  generally  uncollateralized.  At June 30, 2001,  the Company's
largest  credit risk  associated  with any single  purchaser  was  $43,043.  The
Company has not experienced any significant credit losses.

                                     Page 10
<PAGE>
     Volatility of Oil and Gas Prices. The Company's revenues, operating results
and future rate of growth are  dependent  upon the prices  received  for oil and
gas. Historically, the markets for oil and gas have been volatile and are likely
to continue to be so in the future.  Various  factors  beyond the control of the
Company affect the price of oil and gas,  including but not limited to worldwide
and  domestic  supplies  of oil and  gas,  the  ability  of the  members  of the
Organization of Petroleum Exporting Countries to agree to and maintain oil price
and   production   controls,   political   instability   or  armed  conflict  in
oil-producing  regions,  the price and level of  foreign  imports,  the level of
consumer  demand,   the  price  and  availability  of  alternative   fuels,  the
availability  of pipeline  capacity,  weather  conditions,  domestic and foreign
governmental  regulation and the overall economic  environment.  Any significant
decline in prices would  adversely  affect the Company's  revenues and operating
income and may require a reduction in the carrying  value of the  Company's  oil
and gas  properties.  If the  average  oil price for the first  three  months of
fiscal 2002 had  increased or decreased  by one cent per barrel,  the  Company's
pretax  income would have changed by $45. If the average gas price for the first
three months of fiscal 2002 had  increased or decreased by one cent per mcf, the
Company's pretax income would have changed by $1,113.


PART II - OTHER INFORMATION

Item 1.  Legal proceedings
         -----------------
                  None.

Item 2.  Changes in securities
         ----------------------
                  None.

Item 3.  Defaults upon senior securities
         -------------------------------
                  None.

Item 4.  Submission of matters to a vote of security holders
         ---------------------------------------------------
                  None.

Item 5.  Other Information
         -----------------
                  None.

Item 6.  Exhibits and Reports on Form 8-K
         --------------------------------
                  None.



                                     Page 11


<PAGE>


                                   SIGNATURES

     Pursuant to the  requirements  of the  Securities and Exchange Act of 1934,
the  Registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.
                                              MEXCO ENERGY CORPORATION
                                              (Registrant)



Dated: August 13, 2001                        /s/Nicholas C. Taylor
                                              ----------------------------------
                                               Nicholas C. Taylor
                                               President



Dated: August 13, 2001                        /s/Tamala L. McComic
                                              ----------------------------------
                                              Tamala L. McComic
                                              Controller and Assistant Secretary





                                    Page 12