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, 1999

                          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: 1,623,289 shares outstanding at July 30, 1999
<PAGE>
                            MEXCO ENERGY CORPORATION




                                Table of Contents

                                                                            Page


PART I.  FINANCIAL INFORMATION


Consolidated Balance Sheets as of June 30, 1999 (Unaudited)
and March 31, 1999                                                            3

Consolidated Statements of Operations (Unaudited) for the three
month periods ended June 30, 1999 and June 30, 1998                           4

Consolidated Statements of Cash Flows (Unaudited) for the three month
periods ended June 30, 1999 and June 30, 1998                                 5

Note 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
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                     MEXCO ENERGY CORPORATION AND SUBSIDIARY

                           CONSOLIDATED BALANCE SHEETS

                                                     June 30,        March 31,
                                                       1999            1999
                                                   ------------    ------------
                                                    (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents                          $     73,442    $     96,198
  Accounts receivable:
    Oil and gas sales                                   193,456         179,269
    Related parties                                       5,416           3,780
  Prepaid expenses                                       21,042          14,368
                                                   ------------    ------------
    Total current assets                                293,356         293,615

Property and equipment, at cost:
  Oil and gas properties and equipment,
    using full cost method, pledged                   9,969,021      10,495,391
  Office and computer equipment and software             21,874          21,874
                                                   ------------    ------------
                                                      9,990,895      10,517,265
  Less accumulated depreciation, depletion
    and amortization                                  6,874,163       6,767,865
                                                   ------------    ------------
    Property and equipment, net                       3,116,732       3,749,400
                                                   ------------    ------------
Total assets                                       $  3,410,088    $  4,043,015
                                                   ============    ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Current portion of long-term debt                $    253,893    $    516,000
  Accounts payable and accrued expenses                  31,430          85,434
                                                   ------------    ------------
    Total current liabilities                           285,323         601,434

Long-term debt                                          987,107       1,268,000

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;
    1,623,289 shares issued and outstanding             811,644         811,644
  Additional paid in capital                          2,875,399       2,875,399
  Retained earnings (deficit)                        (1,549,385)     (1,513,462)
                                                   ------------    ------------
    Total stockholders' equity                        2,137,658       2,173,581
                                                   ------------    ------------
Total liabilities and stockholders' equity         $  3,410,088    $  4,043,015
                                                   ============    ============

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

                                     Page 3
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                     MEXCO ENERGY CORPORATION AND SUBSIDIARY

                      CONSOLIDATED STATEMENTS OF OPERATIONS
               For the Three Months ended June 30, 1999 and 1998
                                  (Unaudited)

                                                        1999            1998
                                                    -----------     -----------
Operating revenue:
  Oil and gas sales                                 $   332,502     $   449,495
  Property operator fees                                  1,075           1,043
  Other                                                      76             928
                                                    -----------     -----------
    Total operating revenue                             333,653         451,466

Operating costs and expenses:
  Oil and gas production                                175,109         176,383
  Depreciation, depletion and amortization              106,298         496,345
  General and administrative                             62,910          66,415
                                                    -----------     -----------
    Total operating costs and expenses                  344,317         739,143

Other income and (expenses):
  Interest income                                           433           1,298
  Interest expense                                      (25,692)        (39,148)
                                                    -----------     -----------
    Net other income and expenses                       (25,259)        (37,850)
                                                    -----------     -----------
Income before income taxes                              (35,923)       (325,527)

Income tax expense                                         --              --
                                                    -----------     -----------
Net income                                          $   (35,923)    $  (325,527)
                                                    ===========     ===========

Net income per share:
  Basic                                             $     (0.02)    $     (0.20)
  Diluted                                           $     (0.02)    $     (0.20)

Weighted average shares outstanding:
  Basic                                               1,623,289       1,623,289
  Diluted                                             1,623,289       1,623,289

                   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, 1999 and 1998
                                  (Unaudited)

                                                            1999         1998
                                                         ---------    ---------
Cash flows from operating activities:
  Net loss                                               $ (35,923)   $(325,527)
  Adjustments to reconcile net loss to
    net cash provided by operating activities:
      Depreciation, depletion and amortization             106,298      496,345
      Increase in accounts receivable                      (15,823)      (4,412)
      Increase (decrease) in accounts payable              (31,434)       9,558
      Increase in prepaid assets                            (6,674)     (12,970)
                                                         ---------    ---------
   Net cash provided by operating activities                16,444      162,994

Cash flows from investing activities:
  Additions to property and equipment                      (93,537)    (279,400)
  Sale of property and equipment                           597,337         --
                                                         ---------    ---------
   Net cash provided by (used in) investing activities     503,800     (279,400)

Cash flows from financing activities:
  Long-term borrowings                                     100,000         --
  Principal payments on long-term debt                    (643,000)        --
                                                         ---------    ---------
   Net cash used in financing activities                  (543,000)        --
                                                         ---------    ---------
Net decrease in cash                                       (22,756)    (116,406)

Cash, beginning of the period                               96,198      241,348
                                                         ---------    ---------
Cash, end of period                                      $  73,442    $ 124,942
                                                         =========    =========

Interest paid                                            $  29,085    $  39,148
Income taxes paid                                        $    --      $    --

Non-cash investing and financing activities:
Included  in  trade  accounts  payable  at  June  30,  1999  are  capital  costs
attributable to oil and gas properties of $2,471.

                   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  (the  "Company"),  a Colorado  corporation,  was
organized in 1972 and  maintains  its principal  office in Midland,  Texas.  The
Company and Forman Energy Corporation  ("Forman"),  its wholly owned subsidiary,
are engaged in the acquisition,  exploration,  development and production of oil
and gas. While the Company owns producing  properties and undeveloped acreage in
twelve states,  the majority of its activities are centered in the Permian Basin
of West Texas.

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.

     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,
1999, and the results of its  operations and cash flows for the interim  periods
ended  June 30,  1999 and  1998.  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.

                                     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.

For the first  quarter of fiscal 1999,  cash flow from  operations  was $16,444,
which included the effects of an increase in accounts  receivable and a decrease
in accounts payable.  Net cash flow was a negative $22,756.  Cash of $93,537 was
used  for  additions  to  property  and  equipment.  Sales  of the Lazy JL Field
properties and salvaged equipment provided funds of $597,337.

In  September  1998,  the Company,  as operator,  re-entered a gas well in Pecos
County, Texas at a cost of approximately  $112,000.  Funds for this project were
provided out of cash flow from operations and existing cash balances. A pipeline
connection  was made on  January  29,  1999.  The  Company  owns a 100%  working
interest  and a 75.375% net revenue  interest in this well.  Cash flow from this
well was approximately $9,200 for the first three months of fiscal 2000.

In March 1999, the Company,  as operator,  re-entered a second gas well in Pecos
County, Texas at a cost to the Company of approximately  $72,000. Funds for this
project  were  provided  out of cash  flow from  operations  and  existing  cash
balances.  A pipeline  connection was made on April 20, 1999. The Company owns a
97% working interest and a 70.325%.  Cash flow from this well was  approximately
$2,800 for the first  three  months of fiscal  2000.  The  Company  installed  a
plunger lift system in July 1999 at a cost of approximately $6,000.

As part of the Company's focus on increasing profit margins and concentrating on
gas reserves with low cost  operations,  the Company closed the sale of its Lazy
JL oil field  properties in April 1999 for $584,365.  The Company used the sales
proceeds to reduce its debt under the credit facility discussed below.

In April 1999,  the  Company  acquired  interests  in  non-producing  acreage in
Schleicher County, Texas at a cost of approximately $66,000. Funds were provided
out of cash flow from  operations  and existing  cash  balances.  The Company is
presently reviewing several gas re-entry prospects on this acreage.

In June 1999,  the Company  abandoned  the Inez Fasken lease in Midland  County,
Texas. Plugging costs, net of salvage,  were approximately  $22,000. The Company
sold equipment salvaged from this lease for $12,972.

                                     Page 7
<PAGE>
In July 1999, the Company acquired royalty  interests in a producing gas well in
Winkler County, Texas at a cost to the Company of approximately  $94,000.  Funds
for this acquisition were provided by its credit facility discussed below.

In July 1999, the Company acquired working  interests in and assumed  operations
of two producing gas wells in Schleicher County,  Texas at a cost to the Company
of  approximately  $133,000.  Funds for this  acquisition  were  provided by its
credit facility discussed below.

The  Company  is  reviewing  several  other  re-entry  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,  1999,  the  Company  had working  capital of  approximately  $8,000
compared  to negative  working  capital of  approximately  $308,000 at March 31,
1999,  an increase of $316,000.  This is due primarily to a reduction in current
maturities of bank debt.

The Company has a revolving  credit  agreement with  NationsBank of Texas,  N.A.
("Bank")  which  provides  for a credit  facility  of  $3,000,000,  subject to a
borrowing base determination.  The credit facility was amended on April 21, 1999
to increase the borrowing base to $1,639,107,  with scheduled monthly reductions
of $43,000 per month  beginning  May 5, 1999.  The maturity date of this loan is
August 15, 2000.  The borrowing base is subject to  redetermination  on or about
August 1, of each year.  The Bank is presently  reviewing the borrowing base and
anticipates  a  determination  and a one-year  extension of the maturity date by
August 15, 1999. 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 (7.75% at June 30, 1999).  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.
As  of  June  30,  1999,  the  balance  outstanding  under  this  agreement  was
$1,241,000.

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 foreseeable future.

Year 2000 Issue

The Company is in the process of conducting an assessment of the business  risks
associated with the new century.  These risks relate to the inability of certain
software and embedded logic control devices to distinguish between the year 1900
and the year 2000. If not corrected,  the year 2000 could cause such devices and
software to fail or create erroneous results.

The Company's accounting software vendor has modified its software to accurately
handle the new century,  at no additional  cost to the Company.  Therefore,  the
Company does not expect to incur any material  expense  associated  with its own
information systems.

                                     Page 8
<PAGE>
To  mitigate  or  prevent  the  risk  related  to the  Company's  customers  and
suppliers,  formal  communications have been initiated with key third parties in
an attempt to ascertain  their ability to continue to meet their  obligations to
the Company and the potential  impact on the Company's  operations and financial
condition.  The  responses  received  are being  evaluated,  and the Company may
choose  to  use  alternative  sources  of  supply,   markets  or  develop  other
contingency  plans.  The process of evaluating  third party Year 2000  readiness
began in November 1998, is approximately 75 percent  complete,  and is scheduled
for completion by September 30, 1999.

The failure to correct,  on a timely  basis,  a material Year 2000 problem could
result in an  interruption in the Company's  operations or business  activities.
Such interruptions  could have a material adverse affect on Company's results of
operations,  liquidity and financial condition.  Due to the inherent uncertainty
associated  with the Year 2000 issue,  particularly as it relates to third party
Year 2000  readiness,  the Company  cannot  ascertain  at this time  whether the
consequences  of Year 2000 failures will have a material impact on the Company's
future financial results, liquidity, condition or reporting.

Results of Operations - Three Months Ended June 30, 1999 and 1998

The net loss for the quarter ended June 30, 1998 was $325,527,  which included a
full cost ceiling  write-down  of $288,393.  The net loss for the quarter  ended
June 30,  1999 was  $35,923.  Individual  categories  of income and  expense are
discussed below.

Oil and gas sales  decreased  from $449,495 for the first quarter of fiscal 1999
to $332,502 for the same period of fiscal 2000. This decrease of $116,993 or 26%
resulted primarily from decreased oil production. The sale of Lazy JL properties
accounts  for a decrease  for the first  quarter of fiscal  2000 as  compared to
fiscal  1999 of $99,977 in oil and gas sales,  7,355 bbls and 1,970 mcf.  Normal
production  declines,  down time due to remedial work and the abandonment of the
Inez Fasken lease are other factors that account for declines in production. Oil
and gas  production  quantities  were 4,104 bbls and  134,743  mcf for the first
quarter of fiscal  2000 and 14,206  bbls and  126,734  mcf for  fiscal  1999,  a
decrease of 10,102  bbls,  or 71%,  and an increase of 8,009 mcf, or 6%. The two
gas re-entries  discussed  previously account for increases in gas production of
16,044 mcf for the first  quarter of fiscal 2000.  Average gas prices  decreased
from  $2.10 per mcf for the first  quarter  of fiscal  1999 to $1.98 per mcf for
fiscal 2000,  while average oil prices  increased from $12.91 per bbl for fiscal
1999 to $15.97 per bbl for fiscal 2000.

Production costs decreased from $176,383 for the first quarter of fiscal 1999 to
$175,109 for the same period of fiscal  2000, a decrease of $1,274.  The sale of
Lazy JL  properties  reduced  production  costs for the first quarter of 2000 as
compared to fiscal 1999 by $84,016, while major remedial repairs, plugging costs
and costs associated with new wells increased production costs.

General and administrative expenses decreased from $66,415 for the first quarter
of fiscal  1999 to $62,910  for the same  period of fiscal  2000,  a decrease of
$3,505.  This decrease was primarily  due to reductions in  engineering  fees of
$10,079 and franchise  taxes of $5,237,  offset in part by increased  salary and
benefit costs of $11,837.

Depreciation,  depletion and amortization  based on production and other methods
decreased from $496,345 for the first quarter of fiscal 1999 to $106,298 for the
same period of fiscal  2000,  a decrease of $390,047 or 79%.  This  decrease was
primarily  due to a full cost ceiling  write-down in the first quarter of fiscal
1999 of $288,393 and the sale of Lazy JL properties.

Interest expense  decreased from $39,148 for the first quarter of fiscal 1999 to
$25,692 for the same period of fiscal 2000, a decrease of $13,456 or 34%, due to
lower interest rates and reduced borrowings.

                                     Page 9
<PAGE>
                    MEXCO ENERGY CORPORATION AND SUBSIDIARY
           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 decrease or increase
by $12,410.
                                      2000         2001        2002
                                   ---------    ---------   ---------
      Variable rate bank debt      $ 124,893    $ 516,000   $ 600,107

     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, 1999,  the Company's
largest  credit risk  associated  with any single  purchaser  was  $45,677.  The
Company has not experienced any significant credit losses.

     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  quarter of fiscal
2000 had  increased or decreased by one cent,  the  Company's  pretax loss would
have  decreased  or  increased  by $41.  If the  average gas price for the first
quarter of fiscal 2000 had  increased or decreased  by one cent,  the  Company's
pretax loss would have decreased or increased by $1,347.

                                    Page 10
<PAGE>
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

     A  report  on Form  8-K  dated  April  21,  1999 was  filed  under  Item 2.
     Disposition  of Assets.  A report on Form 8-K dated June 17, 1999 was filed
     under Item 1. Changes in Control of Registrant  and Item 2.  Acquisition or
     Disposition of Assets.

                                    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 11, 1999                             Nicholas C. Taylor
                                                   -----------------------------
                                                   Nicholas C. Taylor, President