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, 1999

                          Commission file number 0-6994


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



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



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


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



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



                      APPLICABLE ONLY TO CORPORATE ISSUERS:

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

 Common Stock, $0.50 par value: 1,623,289 shares outstanding at October 29, 1999

<PAGE>

                            MEXCO ENERGY CORPORATION

                                Table of Contents

                                                                           Page

PART I.  FINANCIAL INFORMATION


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

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

Consolidated Statements of Cash Flows (Unaudited) for the six month
periods ended September 30, 1999 and September 30, 1998                       6

Note to Unaudited Consolidated Financial Statements                           7

Management's Discussion and Analysis of Financial Condition
and Results of Operations                                                     8

Quantitative and Qualitative Disclosures About Market Risk                   12


PART II.  OTHER INFORMATION                                                  13


SIGNATURES                                                                   14

                                     2
<PAGE>


                    MEXCO ENERGY CORPORATION AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS

                                                    September 30,     March 31,
                                                        1999             1999
                                                    ------------    ------------
                                                     (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents                          $    125,673    $     96,198
Accounts receivable:
  Oil and gas sales                                     227,611         179,269
  Trade                                                   4,826            --
  Related parties                                         3,905           3,780
Prepaid expenses                                         32,731          14,368
                                                   ------------    ------------
    Total current assets                                394,746         293,615

Property and equipment, at cost:
Oil and gas properties and equipment,
  using full cost method, pledged                    10,196,682      10,495,391
Office and computer equipment and software               21,874          21,874
                                                   ------------    ------------
                                                     10,218,556      10,517,265
Less accumulated depreciation, depletion
and amortization                                      6,974,113       6,767,865
    Property and equipment, net                       3,244,443       3,749,400
                                                   ------------    ------------
Total assets                                       $  3,639,189    $  4,043,015
                                                   ============    ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt                  $       --      $    516,000
Accounts payable and accrued expenses                    74,012          85,434
                                                   ------------    ------------
    Total current liabilities                            74,012         601,434

Long-term debt                                        1,335,000       1,268,000

Stockholders' equity:
Preferred stock, par value $1 per share;
  10,000,000 shares authorized; none issued                --              --
Common stock, par value $0.50 per share;
  40,000,000 shares authorized;
  1,623,289 shares issued and outstanding               811,644         811,644
Additional paid in capital                            2,875,399       2,875,399
Retained earnings (deficit)                          (1,456,866)     (1,513,462)
                                                   ------------    ------------
    Total stockholders' equity                        2,230,177       2,173,581
                                                   ------------    ------------
Total liabilities and stockholders' equity         $  3,639,189    $  4,043,015
                                                   ============    ============

                   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, 1999 and 1998
                                  (Unaudited)

                                                       1999             1998
                                                   -----------      -----------
Operating revenue:
Oil and gas sales                                  $   403,139      $   376,602
Property operator fees                                   1,723            1,044
Other                                                      942            1,268
                                                   -----------      -----------
Total operating revenue                                405,804          378,914

Operating costs and expenses:
Oil and gas production                                 128,342          192,059
Depreciation, depletion and amortization                99,950          168,464
General and administrative                              56,586           59,793
                                                   -----------      -----------
Total operating costs and expenses                     284,878          420,316

Other income and (expenses):
Interest income                                            246            1,842
Interest expense                                       (28,653)         (39,871)
                                                   -----------      -----------
Net other income and expenses                          (28,407)         (38,029)
                                                   -----------      -----------
Income (loss) before income taxes                       92,519          (79,431)

Income tax expense                                        --               --
                                                   -----------      -----------
Net income (loss)                                  $    92,519      $   (79,431)
                                                   ===========      ===========

Net income (loss) per share:
  Basic                                            $      0.06      $     (0.05)
  Diluted                                          $      0.06      $     (0.05)

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

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

                                       4
<PAGE>
                    MEXCO ENERGY CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS
              For the Six Months ended September 30, 1999 and 1998
                                  (Unaudited)

                                                       1999             1998
                                                   -----------      -----------
Operating revenue:
Oil and gas sales                                  $   735,641      $   826,097
Property operator fees                                   2,798            2,087
Other                                                    1,018            2,196
                                                   -----------      -----------
Total operating revenue                                739,457          830,380

Operating costs and expenses:
Oil and gas production                                 303,451          368,442
Depreciation, depletion and amortization               206,248          664,809
General and administrative                             119,496          126,208
                                                   -----------      -----------
Total operating costs and expenses                     629,195        1,159,459

Other income and (expenses):
Interest income                                            679            3,140
Interest expense                                       (54,345)         (79,019)
                                                   -----------      -----------
Net other income and expenses                          (53,666)         (75,879)
                                                   -----------      -----------
Income (loss) before income taxes                       56,596         (404,958)

Income tax expense                                        --               --
                                                   -----------      -----------
Net income (loss)                                  $    56,596      $  (404,958)
                                                   ===========      ===========

Net income (loss) per share:
  Basic                                            $      0.03      $     (0.25)
  Diluted                                          $      0.03      $     (0.25)

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

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

                                       5
<PAGE>
                     MEXCO ENERGY CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
              For the Six Months ended September 30, 1999 and 1998
                                  (Unaudited)

                                                            1999         1998
                                                         ---------    ---------
Cash flows from operating activities:
  Net income (loss)                                      $  56,596    $(404,958)
  Adjustments to reconcile net loss to
    net cash provided by operating activities:
    Depreciation, depletion and amortization               206,248      664,809
    (Increase) decrease in accounts receivable             (51,793)       6,969
    Increase (decrease) in accounts payable                 (4,260)      39,570
    Increase in prepaid assets                             (18,363)      (6,006)
                                                         ---------    ---------
      Net cash provided by operating activities            188,428      300,384

Cash flows from investing activities:
  Additions to property and equipment                     (365,885)    (406,528)
  Sale of property and equipment                           655,932         --
                                                         ---------    ---------
    Net cash provided by (used in) investing activities    290,047     (406,528)

Cash flows from financing activities:
  Long-term borrowings                                     248,174         --
  Principal payments on long-term debt                    (697,174)        --
                                                         ---------    ---------
    Net cash used in financing activities                 (449,000)        --
                                                         ---------    ---------
Net increase (decrease) in cash                             29,475     (106,144)

Cash, beginning of the period                               96,198      241,348
                                                         ---------    ---------
Cash, end of period                                      $ 125,673    $ 135,204
                                                         =========    =========

Interest paid                                            $  55,976    $  65,820
Income taxes paid                                        $    --      $    --

Non-cash investing and financing activities:
Included in trade  accounts  payable at  September  30,  1999 are capital  costs
attributable  to oil and gas  properties of $17,879.  Included in trade accounts
receivable  at September  30, 1999 are proceeds  from the sale of  properties of
$1,500.
                   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  (the  "Company"),  a Colorado  corporation,  was
organized in 1972 and  maintains  its principal  office in Midland,  Texas.  The
Company and Forman Energy Corporation  ("Forman"),  its wholly owned subsidiary,
are engaged in the acquisition,  exploration,  development and production of oil
and gas. While the Company owns producing  properties and undeveloped acreage in
twelve states,  the majority of its activities are centered in the Permian Basin
of West Texas.

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

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

     In the  opinion of  management,  the  accompanying  unaudited  consolidated
financial  statements  contain all  adjustments  necessary to present fairly the
financial  position  of the  Company  and  its  wholly  owned  subsidiary  as of
September  30, 1999,  and the results of its  operations  and cash flows for the
interim periods ended September 30, 1999 and 1998. The results of operations for
the  periods  presented  are not  necessarily  indicative  of the  results to be
expected for a full year.  The accounting  policies  followed by the Company are
set forth in more  detail  in Note A of the  "Notes  to  Consolidated  Financial
Statements"  in the  Company's  annual  report  on  Form  10-K  filed  with  the
Securities and Exchange Commission. Certain information and footnote disclosures
normally included in financial  statements prepared in accordance with generally
accepted accounting  principles have been condensed or omitted in this Form 10-Q
pursuant to the rules and regulations of the Securities and Exchange Commission.
However,  the disclosures herein are adequate to make the information  presented
not  misleading.  It is suggested  that these  financial  statements  be read in
conjunction with the financial statements and notes thereto included in the Form
10-K.


                                       7
<PAGE>

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

Forward-Looking Statements
--------------------------

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

Liquidity and Capital Resources
-------------------------------

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

For the first six months of fiscal 1999, cash flow from operations was $188,428,
which included the effects of an increase in accounts  receivable and a decrease
in accounts  payable.  Net cash flow was $29,475.  Cash of $365,885 was used for
additions  to property  and  equipment.  Sales of the Lazy JL Field  properties,
other oil and gas interests and salvaged  equipment  provided funds of $655,932.
Net cash of $449,000 reduced bank debt.

In  September  1998,  the Company,  as operator,  re-entered a gas well in Pecos
County, Texas at a cost of approximately  $111,000.  Funds for this project were
provided out of cash flow from operations and existing cash balances. A pipeline
connection  was made on  January  29,  1999.  The  Company  owns a 100%  working
interest and a 75.375% net revenue  interest in this well.  Operating  cash flow
from  this well was  approximately  $15,066  for the first six  months of fiscal
2000.

In March 1999, the Company,  as operator,  re-entered a second gas well in Pecos
County, Texas at a cost to the Company of approximately  $72,000. Funds for this
project  were  provided  out of cash  flow from  operations  and  existing  cash
balances.  A pipeline  connection was made on April 20, 1999. The Company owns a
97% working interest and a 70.325% net revenue interest in this well.  Operating
cash flow from this well was  approximately  $9,325  for the first six months of
fiscal 2000. The Company  installed a plunger lift system in July 1999 at a cost
of approximately $7,000.

As part of the Company's focus on increasing profit margins and concentrating on
gas reserves with low cost  operations,  the Company closed the sale of its Lazy
JL oil field properties in April 1999 for  approximately  $581,000.  The Company
used the sales proceeds to reduce its debt under the credit  facility  discussed
below.

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

In June 1999,  the Company  abandoned  the Inez Fasken lease in Midland  County,
Texas. Plugging costs, net of salvage,  were approximately  $23,000. The Company
sold equipment salvaged from this lease for approximately $16,000.

                                        8
<PAGE>
In July 1999, the Company acquired royalty  interests in a producing gas well in
Winkler County, Texas at a cost to the Company of approximately  $94,000.  Funds
for this  acquisition  were  provided by its credit  facility  discussed  below.
Operating  cash flow from this well was  approximately  $3,170  for the  quarter
ended September 30, 1999.

In July 1999, the Company acquired working  interests in and assumed  operations
of two producing gas wells in Schleicher County,  Texas at a cost to the Company
of  approximately  $138,000.  Funds for this  acquisition  were  provided by its
credit  facility   discussed  below.  The  Company  owns  working  interests  of
approximately 95% and 67.444% and net revenue interests of approximately 70.015%
and 54.682%,  respectively,  in these wells.  For the months of July and August,
the Company's  average daily production from these wells was approximately 7 mcf
and 57 mcf, respectively. In September, the Company re-worked one of these wells
and increased its average daily production from 7 mcf to approximately  188 mcf,
which will decline as the reservoir is depleted over time.

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, 1999, the Company had working capital of approximately $321,000
compared  to negative  working  capital of  approximately  $308,000 at March 31,
1999, an increase of $629,000. This is due primarily to the reduction in current
maturities of bank debt of $516,000 and higher oil and gas prices.

The Company has a revolving  credit  agreement with  NationsBank of Texas,  N.A.
("Bank")  which  provides  for a credit  facility  of  $3,000,000,  subject to a
borrowing base determination. The credit facility was amended on August 15, 1999
to increase the borrowing base to $2,200,000,  with scheduled monthly reductions
of $28,000 per month  beginning  September 5, 1999, and extend the maturity date
to August 15, 2001. As of September 30, 1999, the balance outstanding under this
agreement was $1,335,000 and no required  principal payments are anticipated for
fiscal 2000 or 2001.  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
(8.25% at September 30, 1999). This agreement  generally restricts the Company's
ability to transfer assets or control of the Company, incur debt, extend credit,
change the nature of the Company's  business,  substantially  change  management
personnel or pay dividends.

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

Year 2000 Issue
---------------

The Year 2000 problem is the result of computer systems and other equipment with
embedded logic control  devices that were designed to use two digits rather than
four  digits to define a year.  As a result  these  systems  and  devices may be
unable to distinguish between the year 1900 and the year 2000. If not corrected,
such misinterpretations could result in systems failures or erroneous results.

                                       9
<PAGE>
The Company's desktop computer system is compliant,  and its accounting software
vendor has  modified its software to  accurately  handle the new century,  at no
additional  cost to the Company.  The Company  maintains  very few  computerized
production and metering facilities and anticipates no interruption of production
or significant expenditures associated with its own systems and devises.

The failure to correct,  on a timely  basis,  a material Year 2000 problem could
result in an  interruption in the Company's  operations or business  activities.
Such interruptions  could have a material adverse affect on Company's results of
operations,  liquidity and financial condition.  To mitigate or prevent the risk
related to the Company's  customers and suppliers,  formal  communications  have
been initiated  with key third parties in an attempt to ascertain  their ability
to continue to meet their obligations to the Company.  While some of these third
parties are more prepared than others, the Company has no reason to believe that
its key customers and suppliers  will not be able to meet their  obligations  to
the Company.  This readiness  assessment will continue through 1999. The Company
cannot guarantee that all third parties of business  importance will be prepared
for the Year 2000.  Should  circumstances  warrant it, the  Company  will pursue
alternative  sources  of supply and  markets.  Due to the  inherent  uncertainty
associated  with the Year 2000 issue,  particularly as it relates to third party
Year 2000 readiness,  the Company cannot  ascertain  whether the consequences of
Year 2000 failures will have a material impact on the Company's future financial
results, liquidity, condition or reporting.

The foregoing disclosure is based on the Company's current  expectations,  which
could ultimately prove to be inaccurate.  Factors, many of which are outside the
control  of  the  Company,   include  the  failure  of   customers,   suppliers,
governmental  entities  and others to achieve  compliance  and the  inability or
failure  to  identify  all  critical  Year 2000  issues or  develop  appropriate
contingency plans for all Year 2000 issues that ultimately may arise.

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

The net loss for the quarter ended  September  30, 1998 was $79,431.  Net income
for the quarter ended September 30, 1999 was $92,519.  Individual  categories of
income and expense are discussed below.

Oil and gas sales  increased from $376,602 for the second quarter of fiscal 1999
to $403,139 for the same period of fiscal 2000.  This  increase of $26,537 or 7%
resulted  primarily from higher oil and gas prices and increased gas production,
offset  in part by  decreased  oil  production.  The sale of Lazy JL  properties
accounts  for a decrease  for the second  quarter of fiscal  2000 as compared to
fiscal  1999 of $82,351 in oil and gas sales,  6,373 bbls and 1,211 mcf.  Normal
production  declines,  down time due to remedial work and the abandonment of the
Inez Fasken lease are other factors that account for declines in production. Oil
and gas  production  quantities  were 4,586 bbls and  130,602 mcf for the second
quarter of fiscal  2000 and 12,204  bbls and  117,438  mcf for  fiscal  1999,  a
decrease of 7,618 bbls,  or 62%,  and an increase of 13,164 mcf, or 11%. The two
gas  re-entries  and  property  acquisitions  discussed  previously  account for
increases in gas production of 16,320 mcf for the second quarter of fiscal 2000.
Average gas prices increased from $1.94 per mcf for the second quarter of fiscal
1999 to $2.41 per mcf for fiscal 2000,  while average oil prices  increased from
$12.20 per bbl for fiscal 1999 to $19.37 per bbl for fiscal 2000.

Production  costs  decreased from $192,059 for the second quarter of fiscal 1999
to $128,342  for the same period of fiscal  2000,  a decrease of $63,717 or 33%.
The sale of Lazy JL properties  reduced  production costs for the second quarter
of 2000 as compared to fiscal 1999 by $64,006.

General  and  administrative  expenses  decreased  from  $59,793  for the second
quarter of fiscal 1999 to $56,586 for the same period of fiscal 2000, a decrease
of $3,207 or 5%.
                                       10
<PAGE>
Depreciation,  depletion and amortization  based on production and other methods
decreased from $168,464 for the second quarter of fiscal 1999 to $99,950 for the
same period of fiscal  2000,  a decrease of $68,514 or 41%.  This  decrease  was
primarily due to the sale of Lazy JL properties  and the  acquisition of oil and
gas properties discussed above.

Interest expense decreased from $39,871 for the second quarter of fiscal 1999 to
$28,653 for the same period of fiscal 2000, a decrease of $11,218 or 28%, due to
lower interest rates and reduced borrowings.

Results of Operations - Six Months Ended September 30, 1999 and 1998
--------------------------------------------------------------------

The net loss for the six months ended  September  30, 1998 was  $404,958,  which
included a full cost  ceiling  write-down  of  $288,393.  Net income for the six
months ended September 30, 1999 was $56,596. Individual categories of income and
expense are discussed below.

Oil and gas sales  decreased  from  $826,097  for the first six months of fiscal
1999 to $735,641 for the same period of fiscal 2000. This decrease of $90,456 or
11%  resulted  primarily  from  decreased  oil  production,  offset  in  part by
increased  gas  production  and higher oil and gas  prices.  The sale of Lazy JL
properties  accounts  for a decrease  for the first six months of fiscal 2000 as
compared to fiscal 1999 of $182,328 in oil and gas sales,  13,728 bbls and 3,181
mcf.  Normal  production  declines,  down  time  due to  remedial  work  and the
abandonment of the Inez Fasken lease are other factors that account for declines
in production. Oil and gas production quantities were 8,690 bbls and 265,345 mcf
for the first six months of fiscal  2000 and  26,404  bbls and  243,823  mcf for
fiscal 1999,  a decrease of 17,714 bbls,  or 67%, and an increase of 21,522 mcf,
or 9%. The two gas re-entries  and property  acquisitions  discussed  previously
account for  increases in gas  production of 32,364 mcf for the first six months
of fiscal 2000.  Average gas prices  increased  from $2.03 per mcf for the first
six months of fiscal 1999 to $2.19 per mcf for fiscal  2000,  while  average oil
prices  increased  from  $12.59  per bbl for  fiscal  1999 to $17.76 per bbl for
fiscal 2000.

Production costs decreased from $368,442 for the first six months of fiscal 1999
to $303,451  for the same period of fiscal  2000,  a decrease of $64,991 or 18%.
The sale of Lazy JL properties reduced production costs for the first six months
of 2000 as compared to fiscal 1999 by $148,022,  while major  remedial  repairs,
plugging costs and costs associated with new wells increased production costs.

General and  administrative  expenses  decreased from $126,208 for the first six
months of fiscal 1999 to $119,496 for the same period of fiscal 2000, a decrease
of $6,712 or 5%.

Depreciation,  depletion and amortization  based on production and other methods
decreased  from $664,809 for the first six months of fiscal 1999 to $206,248 for
the same period of fiscal 2000, a decrease of $458,561 or 69%. This decrease was
primarily due a full cost ceiling write down of $288,393 in the first quarter of
fiscal 1999,  the sale of Lazy JL properties in the first quarter of fiscal 2000
and the acquisition of oil and gas properties discussed above.

Interest expense  decreased from $79,019 for the first six months of fiscal 1999
to $54,345 for the same period of fiscal 2000, a decrease of $24,674 or 31%, due
to lower interest rates and reduced borrowings.

                                       11
<PAGE>
                    MEXCO ENERGY CORPORATION AND SUBSIDIARY
           Quantitative and Qualitative Disclosures About Market Risk

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

     Interest Rate Risk. The following table  summarizes  fiscal year maturities
for the Company's  variable rate bank debt,  which is tied to prime rate. If the
interest  rate  on  the  Company's  bank  debt  increases  or  decreases  by one
percentage  point, the Company's annual pretax income would decrease or increase
by $13,350.

                                     2000          2001            2002

      Variable rate bank debt    $     -       $     -      $    1,335,000

     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, 1999, the Company's
largest  credit risk  associated  with any single  purchaser  was  $46,271.  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 2000
had  increased or decreased by one cent,  the  Company's  pretax loss would have
decreased or increased by $87. If the average gas price for the first six months
of fiscal 2000 had increased or decreased by one cent, the Company's pretax loss
would have decreased or increased by $2,653.

                                       12
<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

On September 15, 1999, 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
1,202,682 votes for and none against out of a total of 1,623,289 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.

                                       13
<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 10, 1999              /s/Nicholas C. Taylor
                                      ------------------------------------------
                                      Nicholas C. Taylor
                                      President



Dated: November 10, 1999              /s/Linda J. Crass
                                      ------------------------------------------
                                      Linda J. Crass
                                      Treasurer, Controller, Assistant Secretary




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