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, 2001

                          Commission file number 0-6994


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


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



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


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


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



                      APPLICABLE ONLY TO CORPORATE ISSUERS:

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

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


<PAGE>

                            MEXCO ENERGY CORPORATION

                                Table of Contents


    PART I.  FINANCIAL INFORMATION

    Consolidated Balance Sheets as of September 30, 2001
    (Unaudited) and March 31, 2001                                       3

    Consolidated Statements of Operations (Unaudited) for the
    three and six month periods ended September 30, 2001 and
    September 30, 2000                                                   4

    Consolidated Statements of Cash Flows (Unaudited) for
    the six month periods ended September 30, 2000 and
    September 30, 2001                                                   5

    Notes to Unaudited Consolidated Financial Statements                 6

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

    Quantitative and Qualitative Disclosures About Market Risk           9


PART II.  OTHER INFORMATION                                             10


SIGNATURES                                                              12

                                        2
<PAGE>

                     MEXCO ENERGY CORPORATION AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS

                                        September 30,               March 31,
                                           2001                       2001
                                        -------------              ------------
                                        (Unaudited)
ASSETS
Current assets:
   Cash and cash equivalents               $   35,740              $   378,816
   Accounts receivable:
     Oil and gas sales                        253,681                  489,217
     Trade                                     28,404                    1,074
     Related parties                            4,813                    8,059
   Prepaid expenses                            41,660                   74,342
                                         ------------              ------------
       Total current assets                   364,298                  951,508

   Property and equipment, at cost:
   Oil and gas properties and equipment,
     using full cost method, pledged       13,057,694               11,557,980
   Office and computer equipment
     and software                              25,300                   23,600
                                         ------------              ------------
                                           13,082,994               11,581,580
   Less accumulated depreciation,
     depletion and amortization             7,777,558                7,571,728
                                         ------------              ------------
       Property and equipment, net          5,305,436                4,009,852
                                         ------------              ------------
   Total assets                           $ 5,669,734              $ 4,961,360
                                         ============             =============


   LIABILITIES AND STOCKHOLDERS' EQUITY
   Current liabilities:
   Accounts payable and accrued expenses  $    156,378             $    77,776
   Income taxes payable                           -                     51,637
                                         -------------             ------------
       Total current liabilities               156,378                 129,413

   Long-term debt                            1,000,000                 600,000

   Deferred income tax liability               269,329                 185,495

   Stockholders' equity:
   Preferred stock, par value $1 per share;
     10,000,000 shares authorized;
       none issued                                -                       -
   Common stock, par value $0.50 per share;
     40,000,000 shares authorized; 1,621,387
     shares issued                             810,693                 810,693
   Additional paid in capital                2,924,831               2,900,097
   Retained earnings                           580,095                 407,254
   Treasury stock, at cost                     (71,592)                (71,592)
                                         -------------             ------------
       Total stockholders' equity            4,244,027               4,046,452
                                         -------------             ------------
   Total liabilities and stockholders'
     equity                                $ 5,669,734             $ 4,961,360
                                         =============             ============

                    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 and Six Months ended September 30, 2001 and 2000
                                   (Unaudited)


                                    Three Months Ended      Six Months Ended
                                       September 30           September 30
                                   --------------------  ----------------------
                                      2001       2000        2001       2000
                                   ---------  ---------  ---------- -----------
Operating revenue:
   Oil and gas sales                $434,798  $ 712,243  $1,029,549  $1,305,050
   Other                               2,723      3,069       4,431       4,539
                                    --------  ---------  ----------  ----------
      Total operating revenue        437,521    715,312   1,033,980   1,309,589

Operating costs and expenses:
   Oil and gas production            213,702    149,841     371,105    241,134
   Depreciation, depletion
    and amortization                 114,634    103,677     205,830     215,677
   General and administrative         76,137     78,561     190,304     163,603
                                    --------  ---------  ----------  ----------
      Total operating costs
       and expenses                  404,473    332,079     767,239     620,414
                                    --------  ---------  ----------  ----------
                                      33,048    383,233     266,741     689,175
Other income and (expenses):
   Interest income                     1,413      1,540       1,670       1,856
   Interest expense                  (12,185)   (27,472)    (22,713)    (55,294)
                                    --------  ---------  ----------  ----------
      Net other income and expenses  (10,772)   (25,932)    (21,043)    (53,438)
                                    --------  ---------  ----------  ----------
Income before income taxes            22,276    357,301     245,698     635,737

Income tax expense                    48,288       -         72,857        -
                                    --------  ---------  ----------  ----------
Net income (loss)                  ($ 26,012) $ 357,301  $  172,841  $ 635,737
                                    ========  =========  ==========  ==========

Net income (loss) per share:
   Basic                           ($0.02)   $     0.22     $   0.11  $   0.39
   Diluted                         ($0.02)   $     0.22     $   0.11  $   0.39


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

                   The accompanying note is an integral part
                   of the consolidated financial statements.
                                       4
<PAGE>


                     MEXCO ENERGY CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
              For the Six Months ended September 30, 2001 and 2000
                                   (Unaudited)

                                                  2001                 2000
                                              -----------           ---------
Cash flows from operating activities:
   Net income                                 $   172,841           $ 635,737
   Adjustments to reconcile net income
       to net cash provided by operating
       activities:
       Increase in deferred income taxes           83,834                -
       Stock-based compensation                    24,736               6,142
       Depreciation, depletion and
           amortization                           205,830             215,677
       (Increase) decrease in
           accounts receivable                    211,452            (151,604)
       Increase (decrease) in accounts
           payable and accrued expenses           167,120              14,505
       Decrease (increase) in prepaid expenses     32,682              (9,295)
       Decrease in income taxes payable           (51,637)                -
                                               ----------           ---------
       Net cash provided by operating
           activities                             846,858             711,162

Cash flows from investing activities:
   Additions to property and equipment         (1,589,934)           (533,393)
                                               ----------           ---------
       Net cash used in investing
           activities                          (1,589,934)           (533,393)

Cash flows from financing activities:
   Principal (payments) borrowings on
       long-term debt                             400,000            (100,000)
                                               ----------           ---------
       Net cash used in financing activities      400,000            (100,000)
                                               ----------           ---------
Net increase (decrease) in cash                  (343,076)             77,769

Cash, beginning of the period                     378,816              97,712
                                               ----------           ---------
Cash, end of period                            $   35,740           $ 175,481
                                               ==========           =========

Interest paid                                  $   22,654           $ 55,114
Income taxes paid                              $   66,668           $   -


                   The accompanying note is an integral part
                   of the consolidated financial statements.
                                       5
<PAGE>

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


Note A.    Organization and Significant Accounting Policies

      Organization and Basis of Presentation

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

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

Principles of Consolidation

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

Income Taxes

     During the quarter  ended  September  30, 2000 the Company had no provision
for income  taxes due to a reduction  in  valuation  allowance  for deferred tax
assets.  For the quarter  ended  September 30, 2001 income tax expense is higher
than statutory rates due to a correction of a prior quarter estimate.
                                       6
<PAGE>


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


Forward-Looking Statements

Managements  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 by acquiring  and  developing  primarily gas
properties with potential for long-lived production.

For the first six months of fiscal 2002,  cash flow from operations was $846,860
compared to $711,162 for the first six months of fiscal 2001.  This included the
effects  of an  increase  in  deferred  income  taxes,  a decrease  in  accounts
receivable and an increase in accounts payable.  Cash of $1,589,934 was used for
additions to property and equipment.  Accordingly,  net cash flow was a negative
$343,074.

As of September 1, 2000,  the Company  acquired  three  producing  properties in
Pecos  County,  Texas for  $198,000  cash,  adjusted  for  revenues and expenses
through  September  28,  2000,  the date of closing.  The Company  owns  working
interests ranging from 97% to 99%. Net operating cash flow from these properties
was approximately  $86,000 for the twelve months ended September 30, 2001. Since
January  2001,  workovers  were  performed  on four of  these  producing  wells,
increasing production at a total cost to the Company of approximately $161,000.

Effective September 1, 2000, the Company leased 159 gross non-producing acres in
Pecos County,  Texas, in which it retained a 96% working interest,  at a cost of
approximately  $153,000. The Company re-entered a plugged well and commenced gas
production in August 2001.

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

In May 2001, the Company  acquired a 12.5% working  interest (9.375% net revenue
interest) in 8,934 acres in Edwards County, Texas for $125,400. The initial test
well was  drilled  on this  acreage  and  completed  and fraced at a cost to the
Company of approximately  $119,000. The well is shut-in and currently waiting on
construction  of a pipeline  at an  estimated  cost of  $25,000 to the  Companys
interest. The Company plans to participate in the drilling of an additional well
in Edwards County in the next 60 to 90 days.
                                       7
<PAGE>

The Company  acquired  non-operated  working  interests,  ranging from .8512% to
3.75% with net revenue  interests ranging from .6816% to 3.267%, in 21 producing
and 7 inactive wells in Limestone and Freestone Counties,  Texas for $200,000 as
of April 1, 2001.

The Company has acquired and also is reviewing several other projects for future
participation.  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 the bank credit facility discussed
below.

At September 30, 2001, the Company had working capital of approximately $207,920
compared  to working  capital of  approximately  $822,095 at March 31,  2001,  a
decrease of $614,175,  due primarily to acquisitions,  development of properties
and lower oil and gas
prices.

The Company's revolving credit agreement with Bank of America,  N.A.  ("Bank"),
was  amended  to  provide  for a credit  facility  of  $5,000,000,  subject to a
borrowing  base  determination.  The borrowing base was increased to $3,500,000,
with scheduled monthly reductions of the available borrowing base of $49,000 per
month beginning  September 5, 2001, and the maturity date was extended to August
15, 2003. As of September 30, 2001, the balance outstanding under this agreement
was $1,000,000.  No principal payments are anticipated to be required for fiscal
2002. A letter of credit for $50,000,  in lieu of a plugging bond with the Texas
Railroad  Commission  covering  the  properties  the Company  operates,  is also
outstanding under the facility. The borrowing base is subject to redetermination
on or about August 1, of each year.  Amounts  borrowed  under this agreement are
collateralized  by the  common  stock of Forman  and the  Companys  oil and gas
properties.  Interest  under this  agreement  is  payable  monthly at prime rate
(6.00% at September 30, 2001). This agreement  generally restricts the Companys
ability to transfer assets or control of the Company, incur debt, extend credit,
change the nature of the Company's business,  substantially  change  management
personnel or pay dividends.

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

Results of Operations - Three Months Ended September 30, 2001 and 2000

Net income  decreased  107%,  from $357,301 for the quarter ended  September 30,
2000  to  ($26,012)  for  the  quarter  ended  September  30,  2001.  Individual
categories of income and expense are discussed below.

Oil and gas sales  decreased from $712,243 for the second quarter of fiscal 2001
to  $434,798  for the same  period of fiscal  2002.  This  decrease  of $277,445
resulted  primarily from lower oil and gas prices.  Average gas prices decreased
from  $4.42 per mcf for the second  quarter of fiscal  2001 to $2.76 per mcf for
fiscal 2002,  while average oil prices  decreased from $30.55 per bbl for fiscal
2001 to $24.80 for fiscal 2002.  Oil and gas  production  quantities  were 4,357
barrels ("bbls")and 131,098 thousand cubic feet ("mcf") for the second quarter
of fiscal 2001 and 5,074 bbls and 111,840  mcf for fiscal  2002,  an increase of
16% and a decrease of 15%, respectively.

Production  costs  increased 43% from $149,841 for the second  quarter of fiscal
2001  to  $213,702  for  the  same  period  of  fiscal  2002,  primarily  due to
nonrecurring expenses on acquired wells in fiscal 2002.
                                       8
<PAGE>

General and  administrative  expenses  decreased  3% from $78,561 for the second
quarter of fiscal 2001 to $76,137 for the same period of fiscal 2002.

Depreciation,  depletion and amortization  based on production and other methods
increased  11%, from $103,677 for the second  quarter of fiscal 2001 to $114,634
for the same period of fiscal 2002.

Interest  expense  decreased  56% from $27,472 for the second  quarter of fiscal
2001 to $12,185  for the same  period of fiscal  2002,  due  primarily  to lower
interest rates and decreased borrowings outstanding.

There was no provision  for income tax expense for the second  quarter of fiscal
2001 due to a reduction in valuation  allowance for deferred tax assets. For the
same period of fiscal 2002 income tax expense was 48,288,  which is higher than
statutory rates, due to a correction of the first quarter estimate.

Results of Operations - Six Months Ended September 30, 2001 and 2000

Net income  decreased 73% from  $635,737 for the six months ended  September 30,
2000 to  $172,841  for the six  months  ended  September  30,  2001.  Individual
categories of income and expense are discussed below.

Oil and gas sales  decreased  21% from  $1,305,050  for the first six  months of
fiscal 2001 to $1,029,549 for the same period of fiscal 2002,  primarily because
of lower oil and gas prices and  decreased  gas  production.  Average gas prices
decreased  from $3.81 per mcf for the first six  months of fiscal  2001 to $3.55
per mcf for fiscal 2002,  and average oil prices  decreased  from $28.64 per bbl
for  fiscal  2001 to $24.77  per bbl for  fiscal  2002.  Oil and gas  production
quantities  were 9,114 bbls and  273,905  mcf for the first six months of fiscal
2001 and 9,566 bbls and  223,093  mcf for fiscal  2002,  an increase of 5% and a
decrease of 19%, respectively.

Production  costs increased 54% from $241,134 for the first six months of fiscal
2001 to $371,105 for the same period of fiscal 2002.  Non-recurring  expenses on
acquired  properties  and other  operating  expenses to increase  production  on
producing properties primarily account for this increase.

General and  administrative  expenses  increased 16% from $163,603 for the first
six months of fiscal 2001 to $190,304  for the same period of fiscal 2002 due to
increases  in  salary  costs  and  contract   services,   franchise  taxes,  and
compensation related to stock options granted to consultants.

Depreciation,  depletion and amortization, based on production and other methods
of  depreciation,  decreased 5% from $215,677 for the first six months of fiscal
2001 to $205,830 for the same period of fiscal 2002.

Interest  expense  decreased 59% from $55,294 for the first six months of fiscal
2001 to $22,713  for the same  period of fiscal  2002,  due  primarily  to lower
interest rates and decreased borrowings outstanding.

           Quantitative and Qualitative Disclosures About Market Risk

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

     Interest Rate Risk. The following table  summarizes  fiscal year maturities
for the Company's variable rate bank debt,  which is tied to prime rate. If the
interest  rate  on  the  Company's bank  debt  increases  or  decreases  by one
percentage point, the Company's annual pretax income would change by $10,000.
                                       9
<PAGE>

                                         2002         2003           2004
                                      ----------   ----------   -------------
         Variable rate bank debt      $   -       $1,000,000    $     -

Credit Risk.  Credit risk is the risk of loss as a result of  nonperformance  by
other parties of their  contractual  obligations.  The Company's  primary credit
risk is related to oil and gas  production  sold to various  purchasers  and the
receivables generally are uncollateralized. At September 30, 2001, the Company's
largest  credit risk  associated  with any single  purchaser  was  $27,719.  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
2002 had  increased  or decreased  by one cent per barrel,  the Company's pretax
income for such period  would have  changed by $96. If the average gas price for
the first six months of fiscal 2002 had  increased  or decreased by one cent per
mcf, the Company's pretax income would have changed by $2,231.


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,  2001,  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  940,688  votes for and none  against out of a total of  1,610,133
shares 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.
                                       10
<PAGE>

Item 5.  Other Information

     Immediately   subsequent   to  the   above-described   Annual   Meeting  of
Shareholders,  the  directors  increased the  authorized  number of directors to
seven and appointed Arden R. Grover of Midland, Texas to fill such vacancy.

Item 6.  Exhibits and Reports on Form 8-K

                  None.

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



Dated: November 9, 2001                     /s/Tamala L. McComic
                                            -----------------------------------
                                            Tamala L. McComic
                                            Treasurer, Controller and Assistant
                                            Secretary


                                       12