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 December 31, 2000

                          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:
                1,623,293 shares outstanding at December 31, 2000

<PAGE>
                            MEXCO ENERGY CORPORATION


                                Table of Contents

                                                                            Page

PART I.  FINANCIAL INFORMATION

     Consolidated Balance Sheets as of December 31, 2000
     (Unaudited) and March 31, 2000                                           3

     Consolidated Statements of Operations (Unaudited) for the
     three and nine month periods ended December 31, 2000 and
     December 31, 1999                                                        4

     Consolidated Statements of Cash Flows (Unaudited) for
     the nine month periods ended December 31, 2000 and
     December 31, 1999                                                        6

     Notes to Unaudited Consolidated Financial Statements                     7

     Management's Discussion and Analysis of Financial
     Condition and Results of Operations                                      9

     Quantitative and Qualitative Disclosures About Market Risk              13


PART II.  OTHER INFORMATION                                                  14


SIGNATURES                                                                   15

                                       2
<PAGE>
                     MEXCO ENERGY CORPORATION AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS

                                                    December 31,     March 31,
                                                       2000            2000
                                                   ------------    ------------
                                                    (Unaudited)
ASSETS
Current assets:
  Cash and cash equivalents                        $    232,872    $     97,712
  Accounts receivable:
    Oil and gas sales                                   517,950         255,121
    Trade                                                 1,679           2,070
    Related parties                                       4,767          18,105
    Other                                                  --             5,000
  Prepaid expenses                                       62,740          15,789
                                                   ------------    ------------
      Total current assets                              820,008         393,797

Property and equipment, at cost:
  Oil and gas properties and equipment,
    using full cost method, pledged                  11,346,002      10,630,903
  Office and computer equipment
    and software                                         22,586          22,586
                                                   ------------    ------------
                                                     11,368,588      10,653,489
  Less accumulated depreciation,
    depletion and amortization                        7,468,331       7,193,967
                                                   ------------    ------------
      Property and equipment, net                     3,900,257       3,459,522
                                                   ------------    ------------
  Total assets                                     $  4,720,265    $  3,853,319
                                                   ============    ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable and accrued expenses            $     97,101    $     86,091
  Income taxes payable                                    3,606            --
                                                   ------------    ------------
    Total current liabilities                           100,707          86,091

Long-term debt                                          900,000       1,200,000

Deferred income tax liability                            95,794            --

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; 1,623,293
      and 1,623,289 shares issued and
      outstanding as of December 31, 2000
      and March 31, 2000, respectively                  811,646         811,644
  Additional paid in capital                          2,887,680       2,875,399
  Retained earnings (deficit)                           (75,562)     (1,119,815)
    Total stockholders' equity                        3,623,764       2,567,228
                                                   ------------    ------------
  Total liabilities and
    stockholders' equity                           $  4,720,265    $  3,853,319
                                                   ============    ============

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

                                       3
<PAGE>
                     MEXCO ENERGY CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS
              For the Three Months ended December 31, 2000 and 1999
                                   (Unaudited)

                                                        2000            1999
                                                    -----------     -----------
Operating revenue:
  Oil and gas sales                                 $   798,110     $   429,744
  Other                                                   1,562           1,723
                                                    -----------     -----------
    Total operating revenue                             799,672         431,467

Operating costs and expenses:
  Oil and gas production                                135,329         115,227
  Depreciation, depletion and amortization               58,687          98,650
  General and administrative                             73,897          45,495
                                                    -----------     -----------
    Total operating costs and expenses                  267,913         259,372
                                                    -----------     -----------
                                                        531,759         172,095

Other income and (expenses):
  Interest income                                           356             845
  Interest expense                                      (24,199)        (26,899)
                                                    -----------     -----------
    Net other income and expenses                       (23,843)        (26,054)
                                                    -----------     -----------
Income before income taxes                              507,916         146,041

Income tax expense:
  Current                                                 3,606            --
  Deferred                                               95,794            --
                                                    -----------     -----------
                                                         99,400            --
                                                    -----------     -----------
Net income                                          $   408,516     $   146,041
                                                    ===========     ===========

Net income per share:
  Basic                                             $      0.25     $      0.09
  Diluted                                           $      0.25     $      0.09

Weighted average shares outstanding:
   Basic                                              1,623,293       1,623,289
   Diluted                                            1,634,827       1,623,289

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

                                       4
<PAGE>
                     MEXCO ENERGY CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS
              For the Nine Months ended December 31, 2000 and 1999
                                   (Unaudited)

                                                        2000            1999
                                                    -----------     -----------
Operating revenue:
  Oil and gas sales                                 $ 2,103,160     $ 1,165,385
  Other                                                   6,101           5,539
                                                    -----------     -----------
    Total operating revenue                           2,109,261       1,170,924

Operating costs and expenses:
  Oil and gas production                                376,463         418,678
  Depreciation, depletion and amortization              274,364         304,898
  General and administrative                            237,500         164,991
                                                    -----------     -----------
    Total operating costs and expenses                  888,327         888,567
                                                    -----------     -----------
                                                      1,220,934         282,357

Other income and (expenses):
  Interest income                                         2,212           1,524
  Interest expense                                      (79,493)        (81,244)
                                                    -----------     -----------
    Net other income and expenses                       (77,281)        (79,720)
                                                    -----------     -----------
Income before income taxes                            1,143,653         202,637

Income tax expense:
  Current                                                 3,606            --
  Deferred                                               95,794            --
                                                    -----------     -----------
                                                         99,400            --
                                                    -----------     -----------
Net income                                          $ 1,044,253     $   202,637
                                                    ===========     ===========

Net income per share:
  Basic                                             $      0.64     $      0.12
  Diluted                                           $      0.64     $      0.12

Weighted average shares outstanding:
  Basic                                               1,623,293       1,623,289
  Diluted                                             1,627,138       1,623,289


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

                                       5
<PAGE>
                     MEXCO ENERGY CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
              For the Nine Months ended December 31, 2000 and 1999
                                   (Unaudited)

                                                       2000             1999
                                                   -----------      -----------
Cash flows from operating activities:
  Net income                                       $ 1,044,253      $   202,637
  Adjustments to reconcile net income
    to net cash provided by operating
      activities:
    Deferred income taxes                               95,794             --
    Depreciation, depletion and
      amortization                                     274,364          304,898
    Stock-based compensation                            12,283             --
    Increase in accounts receivable                   (244,100)         (58,844)
    Decrease in accounts payable                        (4,882)          (6,552)
    Increase in income taxes payable                     3,606             --
    Increase in prepaid expenses                       (46,951)          (5,502)
                                                   -----------      -----------
      Net cash provided by operating
        activities                                   1,134,367          436,637

Cash flows from investing activities:
  Additions to property and equipment                 (699,207)        (467,817)
  Sale of property and equipment                          --            653,781
                                                   -----------      -----------
    Net cash provided by (used in)
      investing activities                            (699,207)         185,964

Cash flows from financing activities:
  Long-term borrowings                                    --            248,174
  Principal payments on long-term debt                (300,000)        (832,174)
                                                   -----------      -----------
    Net cash used in financing activities             (300,000)        (584,000)
                                                   -----------      -----------
Net increase in cash                                   135,160           38,601

Cash, beginning of the period                           97,712           96,198
                                                   -----------      -----------
Cash, end of period                                $   232,872      $   134,799
                                                   ===========      ===========

Interest paid                                      $    80,315      $    83,202
Income taxes paid                                  $      --        $      --

Non-cash investing and financing activities:
Included  in trade  accounts  payable at December  31,  2000 are  capital  costs
attributable to oil and gas properties of $40,583.

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

                                       6
<PAGE>
                     MEXCO ENERGY CORPORATION AND SUBSIDIARY
                    NOTE 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 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 December
31,  2000,  and the  results of its  operations  and cash flows for the  interim
periods  ended  December 31, 2000 and 1999.  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.

Stock Options

     The Company  previously  accounted  for  employee  stock  option  grants in
accordance with Accounting  Principles Board ("APB") Opinion No. 25, "Accounting
for Stock Issued to Employees," whereby  compensation costs were recognized only
in situations where stock compensatory plans award intrinsic value to recipients
at the date of grant.  On March 31, 2000,  the  Financial  Accounting  Standards
Board  ("FASB")  issued  FASB  Interpretation  No. 44,  "Accounting  for Certain
Transactions  involving Stock Compensation" an interpretation of APB Opinion No.
25, which requires the Company to recognize  compensation costs related to stock
options granted to independent consultants in accordance with FASB Statement No.
123,  "Accounting  for  Stock-Based   Compensation".   The  provisions  of  this

                                       7
<PAGE>
                     MEXCO ENERGY CORPORATION AND SUBSIDIARY
                    NOTE TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

Interpretation were effective July 1, 2000 and apply to new awards granted after
December 15, 1998.  The effects of applying this  Interpretation  are recognized
only  on  a  prospective   basis  for  those  previous   awards  to  independent
consultants,  and accordingly,  no adjustments were made to financial statements
upon initial  application for periods prior to July 1, 2000.  Compensation costs
measured  upon  application  of this  Interpretation  that are  attributable  to
periods subsequent to July 1, 2000, are recognized.

Earnings per Share

     Basic earnings per share is computed by dividing net income by the weighted
average number of common shares outstanding during the period.  Diluted earnings
per share is computed by dividing net income by the weighted  average  number of
common shares and dilutive  potential common shares (stock options)  outstanding
during the period.  The  following is a  reconciliation  of the number of shares
used in the  calculation  of basic  earnings per share and diluted  earnings per
share for the periods ended December 31, 2000.

                                                         December 31, 2000
                                                   -----------------------------
                                                      Three             Nine
                                                   Months Ended     Months Ended
                                                   ------------     ------------
Weighted average number of
  common shares outstanding                           1,623,293        1,623,293
Incremental shares from the
  assumed exercise of dilutive
    stock options                                        11,534            3,845
                                                   ------------     ------------
Dilutive potential common shares                      1,634,827        1,627,138
                                                   ============     ============

     Options to purchase  90,000  shares  outstanding  at December  31, 2000 and
December 31, 1999 were not included in the computation of diluted net income per
share  because the  exercise  price of the options was greater  than the average
market  price  of  the  common  shares  and,  therefore,  the  effect  would  be
antidilutive.

Income Taxes

     The income tax provision in the  statements of operations for the three and
nine month periods ended  December 31, 2000 is less than the expected  statutory
rate primarily due to a decrease in valuation allowance.

                                       8
<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 ("MD&A") 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  nine  months  of fiscal  2001,  cash  flow  from  operations  was
$1,134,000, which included the effects of an increase in accounts receivable and
a decrease  in accounts  payable.  Cash of $699,207  was used for  additions  to
property and  equipment.  Cash of $300,000  reduced bank debt. Net cash flow was
$135,160.

In April 1999 and July 1999, the Company acquired interests in non-producing and
producing  acreage in  Schleicher  County,  Texas and assumed  operations of two
producing  gas  wells  at  a  cost  of   approximately   $66,000  and  $138,000,
respectively.  Funds for these acquisitions were provided by the credit facility
discussed below, cash flow from operations and existing cash balances. Operating
cash flow from  these two wells  was  approximately  $163,000  for the  eighteen
months ended  December 31, 2000.  In February  2000,  the Company,  as operator,
completed the re-entry of a gas well on this non-producing  acreage at a cost to
the Company of approximately  $189,000.  Funds were provided from cash flow from
operations  and existing cash  balances.  Operating cash flow from this re-entry
was  approximately  $53,000 for the eleven months ended  December 31, 2000.  The
Company owns  approximate  working  interests in these wells ranging from 67% to
97%.

In July 1999, the Company acquired royalty interests of approximately 2.55% 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. Cash flow from this well was approximately $14,000 for
the eighteen  months ended  December 31, 2000.  In October  2000,  drilling of a
replacement well commenced,  with completion expected in March 2001. The Company
retains its royalty  interests in this replacement well at no additional cost to
the Company.
                                       9
<PAGE>
The Company has 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  as of
September 30, 2000. Two test wells were drilled on this acreage.  The first test
well has been temporarily  abandoned pending further evaluation.  As of December
31, 2000, the cost to the Company for this well totaled  approximately  $55,000.
The second test well has been  drilled,  plugged and  abandoned at a cost to the
Company of approximately $43,000.  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.  Funds to date for this
project have been provided by cash flow from operations.

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. Funds for this acquisition were
provided by cash flows from  operations.  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.  Cash flow from these properties was approximately $15,000 for
the two months  ended  December  31,  2000.  In  January  2001,  workovers  were
performed on two of these producing wells, increasing production at a total cost
to the Company of approximately $30,000.

Effective September 1, 2000, the Company leased 159 gross non-producing acres in
Pecos County,  Texas, in which it retained a 98% working interest,  at a cost of
approximately  $24,600.  The Company plans to re-enter an abandoned well on this
acreage in February  2001 at an  estimated  cost of $55,000.  Funds to date have
been provided by cash flow from operations.

On  September  5,  2000,  the  Company   acquired  a  50%  working  interest  in
approximately  107  gross  non-producing   acres  in  Coke  County,   Texas  for
approximately $10,000. 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  $20,000.  Funds have been  provided by
cash flow from operations.

On October 31, 2000, the Company  acquired a 12.5% working interest in 400 gross
non-producing acres in Nolan County,  Texas at a cost of $11,750.  Drilling of a
well on this  acreage is  scheduled  to commence in January  2001.  Drilling and
completion  costs to the Company are  estimated  at $73,000.  Drilling  costs of
$43,167 were prepaid in December 2000. An additional well may be drilled on this
acreage pending the results of the first well.  Funds to date have been provided
by cash flow from operations.

Effective  December 1, 2000, the Company  acquired a 1.345% royalty  interest in
producing acreage in Limestone County,  Texas for cash of $33,000.  The drilling
of a second  well,  at no cost to the  Company,  is  presently  underway on this
acreage. Funds were provided by cash flow from operations.

                                       10
<PAGE>
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 December 31, 2000, the Company had working capital of approximately  $719,000
compared to working  capital of  approximately  $308,000 at March 31,  2000,  an
increase of $411,000. This is due primarily to higher oil and gas prices.

The  Company  has a  revolving  credit  agreement  with  Bank of  America,  N.A.
("Bank"),  which  provides  for a credit  facility of  $3,000,000,  subject to a
borrowing base  determination.  Effective September 15, 2000, the borrowing base
was increased to $2,500,000,  with scheduled monthly reductions of the available
borrowing base of $32,000 per month beginning  October 5, 2000, and the maturity
date was extended to August 15, 2002. As of December 31, 2000, debt  outstanding
under this  agreement was $900,000 and the  borrowing  base was  $2,404,000.  No
required principal payments are anticipated for the next twelve months. 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 (9.5% at  December  31,
2000).  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 next twelve months.

Results of Operations - Three Months Ended December 31, 2000 and 1999
---------------------------------------------------------------------
Net income  increased  from $146,041 for the quarter ended  December 31, 1999 to
$408,516  for the quarter  ended  December  31,  2000,  an increase of $262,475.
Individual categories of income and expense are discussed below.

Oil and gas sales  increased  from $429,744 for the third quarter of fiscal 2000
to $798,110 for the same period of fiscal 2001. This increase of $368,366 or 86%
resulted from higher oil and gas prices. Average gas prices increased from $2.48
per mcf for the third  quarter of fiscal 2000 to $5.83 per mcf for fiscal  2001,
while average oil prices increased from $23.33 per bbl for fiscal 2000 to $31.45
per bbl for fiscal 2001.  Oil and gas production  quantities  were 4,633 barrels
("bbls") and 129,637 thousand cubic feet ("mcf") for the third quarter of fiscal
2000 and 4,391 bbls and 113,240 mcf for fiscal  2001,  a decrease of 242 bbls or
5%, and a decrease of 16,397 mcf or 13%.

                                       11
<PAGE>
Production costs increased from $115,227 for the third quarter of fiscal 2000 to
$135,329 for the same period of fiscal 2001, an increase of $20,102 or 17%. This
is due primarily to increased  production  taxes  associated with higher oil and
gas prices and the property acquisitions discussed above.

General and administrative expenses increased from $45,495 for the third quarter
of fiscal  2000 to $73,897 for the same  period of fiscal  2001,  an increase of
$28,402 or 62%. Increases in salary costs and contract services ($14,900), legal
fee  ($2,200),  compensation  related to stock  options  granted to  consultants
($6,100) and a bad debt ($5,000) account for this.

Depreciation,  depletion and amortization, based on production and other methods
of depreciation,  decreased from $98,650 for the third quarter of fiscal 2000 to
$58,687  for the same  period of fiscal  2001,  a decrease of $39,963 or 41% due
primarily to property acquisitions.

Interest expense  decreased from $26,899 for the third quarter of fiscal 2000 to
$24,199 for the same period of fiscal  2001, a decrease of $2,700 or 10%, due to
decreasing amounts outstanding under the Company's credit facility.

Results of Operations - Nine Months Ended December 31, 2000 and 1999
--------------------------------------------------------------------
Net income  increased  from $202,637 for the nine months ended December 31, 1999
to  $1,044,253  for the nine months  ended  December  31,  2000,  an increase of
$841,616. Individual categories of income and expense are discussed below.

Oil and gas sales  increased from $1,165,385 for the first nine months of fiscal
2000 to $2,103,160 for the same period of fiscal 2001. This increase of $937,775
or 80%  resulted  primarily  from higher oil and gas prices.  Average gas prices
increased  from $2.29 per mcf for the first nine  months of fiscal 2000 to $4.40
per mcf for fiscal 2001,  while average oil prices increased from $19.70 per bbl
for  fiscal  2000 to $29.56  per bbl for  fiscal  2001.  Oil and gas  production
quantities  were 13,323 bbls and 394,982 mcf for the first nine months of fiscal
2000 and 13,505 bbls and 387,145  mcf for fiscal  2001,  an increase of 182 bbls
and a decrease of 7,837 mcf.

Production  costs  decreased  from  $418,678 for the first nine months of fiscal
2000 to $376,463  for the same period of fiscal  2001,  a decrease of $42,215 or
10%.  Nonrecurring remedial repairs and plugging costs in fiscal 2000, offset in
part by increased  production taxes associated with higher oil and gas prices in
fiscal 2001 and  operating  costs  associated  with newly  acquired  properties,
account for this decrease.

General and  administrative  expenses increased from $164,991 for the first nine
months of fiscal  2000 to  $237,500  for the same  period  of  fiscal  2001,  an
increase of $72,509 or 44%.  Increases  in salary  costs and  contract  services
($31,200),   compensation  related  to  stock  options  granted  to  consultants
($12,300), legal fees ($2,900),  accounting fees ($2,000), increases and changes
in the timing of  engineering  and  geological  costs  ($16,600)  and a bad debt
($5,000) account for this.

Depreciation,  depletion and amortization, based on production and other methods
of  depreciation,  decreased  from  $304,898 for the first nine months of fiscal
2000 to $274,364  for the same period of fiscal  2001,  a decrease of $30,534 or
10% due primarily to property acquisitions.

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<PAGE>
Interest expense decreased from $81,244 for the first nine months of fiscal 2000
to $79,493 for the same period of fiscal 2001, a decrease of $1,751.

           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 $9,000.

                                              2001          2002          2003
                                            --------      --------      --------
Variable rate bank debt                     $  --         $  --         $900,000


     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 December 31, 2000, the Company's
largest  credit risk  associated  with any single  purchaser  was  $56,150.  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 nine months of fiscal
2001 had  increased or decreased by one cent per barrel,  the  Company's  pretax
income would have  changed by $135.  If the average gas price for the first nine
months  of fiscal  2001 had  increased  or  decreased  by one cent per mcf,  the
Company's pretax income would have changed by $3,871.

                                       13
<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

                  None.

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                                   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: February 9, 2001                           /s/ Nicholas C. Taylor
                                                  ------------------------------
                                                      Nicholas C. Taylor
                                                      President



Dated: February 9, 2001                           /s/ Linda J. Crass
                                                  ------------------------------
                                                      Linda J. Crass
                                                      Treasurer, Controller, and
                                                      Assistant Secretary


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