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 September 30, 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 September 30, 2000
<PAGE>

                            MEXCO ENERGY CORPORATION


                                Table of Contents

                                                                           Page

PART I.  FINANCIAL INFORMATION

   Consolidated Balance Sheets as of September 30, 2000
   (Unaudited) and March 31, 2000                                             3

   Consolidated Statements of Operations (Unaudited) for the
   three and six month periods ended September 30, 2000 and
   September 30, 1999                                                         4

   Consolidated Statements of Cash Flows (Unaudited) for
   the six month periods ended September 30, 2000 and
   September 30, 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                12


PART II.  OTHER INFORMATION                                                  14


SIGNATURES                                                                   15

                                       2
<PAGE>

                     MEXCO ENERGY CORPORATION AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS


                                                  September 30,      March 31,
                                                      2000             2000
                                                  ------------     ------------
                                                   (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents                         $    175,481     $     97,712
Accounts receivable:
  Oil and gas sales                                    419,664          255,121
  Trade                                                  1,235            2,070
  Related parties                                        6,001           18,105
  Other                                                  5,000            5,000
Prepaid expenses                                        25,084           15,789
                                                  ------------     ------------
    Total current assets                               632,465          393,797

Property and equipment, at cost:
Oil and gas properties and equipment,
  using full cost method, pledged                   11,156,806       10,630,903
Office and computer equipment
  and software                                          22,586           22,586
                                                  ------------     ------------
                                                    11,179,392       10,653,489
Less accumulated depreciation,
  depletion and amortization                         7,409,644        7,193,967
                                                  ------------     ------------
    Property and equipment, net                      3,769,748        3,459,522
                                                  ------------     ------------
Total assets                                      $  4,402,213     $  3,853,319
                                                  ============     ============


LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses             $     93,106     $     86,091
                                                  ------------     ------------
    Total current liabilities                           93,106           86,091

Long-term debt                                       1,100,000        1,200,000

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; 1,623,293
    and 1,623,289 shares issued and
    outstanding as of September 30, 2000
    and March 31, 2000, respectively                   811,646          811,644
Additional paid in capital                           2,881,539        2,875,399
Retained earnings (deficit)                           (484,078)      (1,119,815)
                                                  ------------     ------------
    Total stockholders' equity                       3,209,107        2,567,228
                                                  ------------     ------------
Total liabilities and stockholders'
  equity                                          $  4,402,213     $  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 September 30, 2000 and 1999
                                   (Unaudited)


                                                        2000            1999
                                                    -----------     -----------
Operating revenue:
  Oil and gas sales                                 $   712,243     $   403,139
  Other                                                   3,069           2,665
                                                    -----------     -----------
    Total operating revenue                             715,312         405,804

Operating costs and expenses:
  Oil and gas production                                149,841         128,342
  Depreciation, depletion and amortization              103,677          99,950
  General and administrative                             78,561          56,586
                                                    -----------     -----------
    Total operating costs and expenses                  332,079         284,878
                                                    -----------     -----------
                                                        383,233         120,926

Other income and (expenses):
  Interest income                                         1,540             246
  Interest expense                                      (27,472)        (28,653)
                                                    -----------     -----------
    Net other income and expenses                       (25,932)        (28,407)
                                                    -----------     -----------
Income before income taxes                              357,301          92,519

Income tax expense                                         --              --
                                                    -----------     -----------
Net income                                          $   357,301     $    92,519
                                                    ===========     ===========


Net income per share:
  Basic                                             $      0.22     $      0.06
  Diluted                                           $      0.22     $      0.06


Weighted average shares outstanding:
  Basic                                               1,623,293       1,623,289
  Diluted                                             1,623,293       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 Six Months ended September 30, 2000 and 1999
                                   (Unaudited)


                                                        2000            1999
                                                    -----------     -----------
Operating revenue:
  Oil and gas sales                                 $ 1,305,050     $   735,641
  Other                                                   4,539           3,816
                                                    -----------     -----------
    Total operating revenue                           1,309,589         739,457

Operating costs and expenses:
  Oil and gas production                                241,134         303,451
  Depreciation, depletion and amortization              215,677         206,248
  General and administrative                            163,603         119,496
                                                    -----------     -----------
    Total operating costs and expenses                  620,414         629,195
                                                    -----------     -----------
                                                        689,175         110,262

Other income and (expenses):
  Interest income                                         1,856             679
  Interest expense                                      (55,294)        (54,345)
                                                    -----------     -----------
    Net other income and expenses                       (53,438)        (53,666)
                                                    -----------     -----------
Income before income taxes                              635,737          56,596

Income tax expense                                         --              --
                                                    -----------     -----------
Net income                                          $   635,737     $    56,596
                                                    ===========     ===========


Net income per share:
  Basic                                             $      0.39     $      0.03
  Diluted                                           $      0.39     $      0.03


Weighted average shares outstanding:
  Basic                                               1,623,293       1,623,289
  Diluted                                             1,623,293       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 Six Months ended September 30, 2000 and 1999
                                   (Unaudited)


                                                          2000           1999
                                                       ---------      ---------
Cash flows from operating activities:
  Net income                                           $ 635,737      $  56,596
  Adjustments to reconcile net loss
    to net cash provided by operating
    activities:
    Depreciation, depletion and
      amortization                                       215,677        206,248
    Stock-based compensation                               6,142           --
    Increase in accounts receivable                     (151,604)       (51,793)
    Increase (decrease) in accounts
      payable                                             14,505         (4,260)
    Increase in prepaid expenses                          (9,295)       (18,363)
                                                       ---------      ---------
    Net cash provided by operating
      activities                                         711,162        188,428

Cash flows from investing activities:
  Additions to property and equipment                   (533,393)      (365,885)
  Sale of property and equipment                            --          655,932
                                                       ---------      ---------
    Net cash provided by (used in)
      investing activities                              (533,393)       290,047

Cash flows from financing activities:
  Long-term borrowings                                      --          248,174
  Principal payments on long-term debt                  (100,000)      (697,174)
                                                       ---------      ---------
    Net cash used in financing activities               (100,000)      (449,000)
                                                       ---------      ---------
Net increase in cash                                      77,769         29,475

Cash, beginning of the period                             97,712         96,198
                                                       ---------      ---------
Cash, end of period                                    $ 175,481      $ 125,673
                                                       =========      =========


Interest paid                                          $  55,114      $  55,976
Income taxes paid                                      $    --        $    --


Non-cash investing and financing activities:
Included in trade  accounts  payable at  September  30,  2000 are capital  costs
attributable to oil and gas properties of $17,201.

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

                                       6
<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 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
September  30, 2000,  and the results of its  operations  and cash flows for the
interim periods ended September 30, 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.

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

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
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 upon initial application
to financial  statements 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.

     The assumed  conversion  of stock  options to acquire  40,000 shares of the
Company's common stock were  anti-dilutive and were not included in the weighted
average diluted shares outstanding for all periods presented.

Income Taxes

     During the six months ended September 30, 2000 the Company had no provision
for income  taxes due to a reduction  in  valuation  allowance  for deferred tax
assets.

                                       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 six months of fiscal 2001, cash flow from operations was $711,162,
which  included the effects of an increase in accounts  receivable  and accounts
payable. Cash of $533,393 was used for additions to property and equipment. Cash
of $100,000 reduced bank debt. Net cash flow was $77,769.

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  $133,400  and $53,300 for the
fifteen  months  and six months  ended  September  30,  2000,  respectively.  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 $38,900 and $30,700 for
the eight months and six months ended  September  30,  2000,  respectively.  The
Company owns  approximate  working  interests in these wells ranging from 67% to
97%.

In July 1999, the Company  acquired  royalty  interests  totaling  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 and
$4,300  for the  fifteen  months  and  six  months  ended  September  30,  2000,
respectively.  In  October  2000 this well was  shut-in  and the  drilling  of a
replacement  well  commenced,  with  completion  expected  within  the next four
months. 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 will be drilled on this  acreage.  The first
test well commenced  drilling August 1, 2000 and has been temporarily  abandoned
pending  further  evaluation.  The  cost of  this  well  to the  Company,  as of
September 30, 2000, was approximately $54,000.  Drilling of the second test well
is scheduled to commence in November  2000.  A prepayment  of drilling  costs of
$41,650  was made in  October.  The total cost to the  Company  for this well is
estimated at $57,000. Depending on the results of these wells, a number of 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 has
assumed  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.

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 a plugged and  abandoned
well on this acreage in November 2000 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 at a cost of
$2,667.  In  addition,  a  prospect  bonus  of  $7,500  will  be  due  with  the
recompletion  of  the  abandoned  well  on  this  acreage.   The  cost  of  this
recompletion  planned in November  2000 is estimated  at $20,000.  Funds to date
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.  In January
2001,  drilling of a well on this acreage is planned.  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.

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 September 30, 2000, the Company had working capital of approximately $539,000
compared to working  capital of  approximately  $308,000 at March 31,  2000,  an
increase of $231,000. This is due primarily to higher oil and gas prices.

                                       10
<PAGE>
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 September 30, 2000, debt outstanding
under this agreement was $1,100,000  and the borrowing base was  $2,500,000.  No
required  principal payments are anticipated for fiscal 2001. 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 September  30, 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 September 30, 2000 and 1999

Net income  increased  from $92,519 for the quarter ended  September 30, 1999 to
$357,301 for the quarter  ended  September  30,  2000,  an increase of $264,782.
Individual categories of income and expense are discussed below.

Oil and gas sales  increased from $403,139 for the second quarter of fiscal 2000
to $712,243 for the same period of fiscal 2001. This increase of $309,104 or 77%
resulted primarily from higher oil and gas prices.  Average gas prices increased
from  $2.41 per mcf for the second  quarter of fiscal  2000 to $4.42 per mcf for
fiscal 2001,  while average oil prices  increased from $19.37 per bbl for fiscal
2000 to $30.55 per bbl for fiscal 2001. Oil and gas production  quantities  were
4,586 barrels  ("bbls") and 130,602  thousand  cubic feet ("mcf") for the second
quarter  of fiscal  2000 and 4,357  bbls and  131,098  mcf for  fiscal  2001,  a
decrease of 229 bbls, and an increase of 496 mcf.

Production  costs  increased from $128,342 for the second quarter of fiscal 2000
to $149,841 for the same period of fiscal  2001,  an increase of $21,499 or 17%.
This is due primarily to increased  production  taxes associated with higher oil
and gas prices.

General  and  administrative  expenses  increased  from  $56,586  for the second
quarter  of fiscal  2000 to  $78,561  for the same  period of  fiscal  2001,  an
increase of $21,975 or 39%.  Increases  in salary  costs and  contract  services
($7,300), compensation related to stock options granted to consultants ($6,100),
accounting  fees ($3,100) and increases and changes in the timing of engineering
and geological costs ($3,900) account for this.

                                       11
<PAGE>
Depreciation,  depletion and amortization, based on production and other methods
of depreciation, increased from $99,950 for the second quarter of fiscal 2000 to
$103,677 for the same period of fiscal 2001, an increase of $3,727.

Interest expense decreased from $28,653 for the second quarter of fiscal 2000 to
$27,472 for the same period of fiscal 2001, a decrease of $1,181.

Results of Operations - Six Months Ended September 30, 2000 and 1999

Net income increased from $56,596 for the six months ended September 30, 1999 to
$635,737 for the six months ended  September  30, 2000, an increase of $579,141.
Individual categories of income and expense are discussed below.

Oil and gas sales  increased  from  $735,641  for the first six months of fiscal
2000 to $1,305,050 for the same period of fiscal 2001. This increase of $569,409
or 77%  resulted  primarily  from higher oil and gas prices.  Average gas prices
increased  from $2.19 per mcf for the first six  months of fiscal  2000 to $3.81
per mcf for fiscal 2001,  while average oil prices increased from $17.76 per bbl
for  fiscal  2000 to $28.64  per bbl for  fiscal  2001.  Oil and gas  production
quantities  were 8,690 bbls and  265,345  mcf for the first six months of fiscal
2000 and 9,114 bbls and  273,905 mcf for fiscal  2001,  an increase of 424 bbls,
and an increase of 8,560 mcf.

Production costs decreased from $303,451 for the first six months of fiscal 2000
to $241,134  for the same period of fiscal  2001,  a decrease of $62,317 or 21%.
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, account for this decrease.

General and  administrative  expenses  increased from $119,496 for the first six
months of fiscal  2000 to  $163,603  for the same  period  of  fiscal  2001,  an
increase of $44,107 or 37%.  Increases  in salary  costs and  contract  services
($16,300),   compensation  related  to  stock  options  granted  to  consultants
($6,100),  accounting  fees  ($4,400) and increases and changes in the timing of
engineering and geological costs ($15,600) account for this.

Depreciation,  depletion and amortization, based on production and other methods
of depreciation, increased from $206,248 for the first six months of fiscal 2000
to $215,677 for the same period of fiscal 2001, an increase of $9,429.

Interest expense  increased from $54,345 for the first six months of fiscal 2000
to $55,294 for the same period of fiscal 2001, an increase of $949.

           Quantitative and Qualitative Disclosures About Market Risk

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

                                       12
<PAGE>
     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 $11,000.

                                           2001          2002          2003
                                        ----------    ----------    ----------
      Variable rate bank debt           $    --       $    --       $1,100,000


     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 September 30, 2000, the Company's
largest  credit risk  associated  with any single  purchaser  was  $77,435.  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 six months of fiscal
2001 had  increased or decreased by one cent per barrel,  the  Company's  pretax
income  would have  changed by $91.  If the  average gas price for the first six
months  of fiscal  2001 had  increased  or  decreased  by one cent per mcf,  the
Company's pretax income would have changed by $2,739.

                                       13
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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

          On September 27, 2000, the Annual Meeting of the  Shareholders  of the
     Company was held in Midland,  Texas, for the purpose of electing a Board of
     Directors.  Each of the six  directors  nominated by the Board of Directors
     was  elected  with  935,398  votes for and none  against  out of a total of
     1,623,293  share of common  stock of the  Company  issued and  outstanding.
     William G. Duncan, Jr., Thomas Graham,  Jr., Nicholas C. Taylor,  Thomas R.
     Craddick,  Jack D. Ladd and Donna Gail Yanko were duly  elected to serve as
     directors  until the next annual  meeting  and until the  election of their
     respective successors.

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: November 8, 2000                           /s/ Nicholas C. Taylor
                                                  ------------------------------
                                                      Nicholas C. Taylor
                                                      President



Dated: November 8, 2000                           /s/ Linda J. Crass
                                                  ------------------------------
                                                      Linda J. Crass
                                                      Treasurer, Controller, and
                                                      Assistant Secretary



                                       15
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