| Colorado                                 | 84-0627918             |
|------------------------------------------|------------------------|
| (State or other jurisdiction of          | (IRS Employer          |
| incorporation or organization)           | Identification Number) |
|                                     |                   |
| 214 West Texas Avenue, Suite 1101        |                   |
| Midland, Texas                           | 79701                  |
| (Address of principal executive offices) | (Zip code)             |

|   | Large Accelerated Filer [  ] | Accelerated Filer [  ]    |
|--------|----------------------------------------|-------------------------------------|
|   |                                   |                                |
|   | Non-Accelerated Filer [  ]   | Smaller reporting company [√] |

----

|                                     |     | Table of Contents                                                                                                                     |   |
|------------------------------------------|----------|---------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                     |     |                                                                                                                                  | Page   |
| PART I.  FINANCIAL INFORMATION |     |
|                                     |     |
|                                     | Item 1.  | Consolidated Balance Sheets as of September 30, 2010 (Unaudited) and March 31, 2010                                                   | 3      |
|                                     |     |                                                                                                                                  |   |
|                                     |     | Consolidated Statements of Operations (Unaudited) for the three months and six months ended September 30, 2010 and September 30, 2009 | 4      |
|                                     |     |                                                                                                                                  |   |
|                                     |     | Consolidated Statement of Changes in Stockholders’ Equity (Unaudited) as of September 30, 2010                                  | 5      |
|                                     |     |                                                                                                                                  |   |
|                                     |     | Consolidated Statements of Cash Flows (Unaudited) for the six months ended September 30, 2010 and September 30, 2009                  | 6      |
|                                     |     |                                                                                                                                  |   |
|                                     |     | Notes to Consolidated Financial Statements (Unaudited)                                                                                | 7      |
|                                     |     |                                                                                                                                  |   |
|                                     | Item 2.  | Management's Discussion and Analysis of Financial Condition and Results of Operations                                                 | 12     |
|                                     |     |                                                                                                                                  |   |
|                                     | Item 3.  | Quantitative and Qualitative Disclosures About Market Risk                                                                            | 15     |
|                                     |     |                                                                                                                                  |   |
|                                     | Item 4.  | Controls and Procedures                                                                                                               | 16     |
|                                     |     |                                                                                                                                  |   |
| PART II.  OTHER INFORMATION    |     |
|                                     |     |
|                                     | Item 1.  | Legal Proceedings                                                                                                                     | 16     |
|                                     |     |                                                                                                                                  |   |
|                                     | Item 1A. | Risk Factors                                                                                                                          | 16     |
|                                     |     |                                                                                                                                  |   |
|                                     | Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds                                                                           | 16     |
|                                     |     |                                                                                                                                  |   |
|                                     | Item 3.  | Defaults upon Senior Securities                                                                                                       | 16     |
|                                     |     |                                                                                                                                  |   |
|                                     | Item 4.  | Removed and Reserved                                                                                                                  | 16     |
|                                     |     |                                                                                                                                  |   |
|                                     | Item 5.  | Other Information                                                                                                                     | 16     |
|                                     |     |                                                                                                                                  |   |
|                                     | Item 6.  | Exhibits                                                                                                                              | 16     |
|                                     |     |                                                                                                                                  |   |
| SIGNATURES                               | 17       |
|                                     |     |
| CERTIFICATIONS                           |     |

----

| Mexco Energy Corporation and Subsidiaries                                                                                                 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED BALANCE SHEETS                                                                                                               |   |
|                                                                                                                                      |   |   |   |   |   |   |
|                                                                                                                                      |   | September 30, |   |   | March 31, |   |
|                                                                                                                                      |   | 2010 |   |   | 2010 |   |
|                                                                                                                                      |   | (Unaudited) |   |   |   |   |
| ASSETS                                                                                                                                    |   |   |   |   |   |   |
| Current assets                                                                                                                            |   |   |   |   |   |   |
| Cash and cash equivalents                                                                                                                 |   | $ | 142,760 |   |   | $ | 160,439 |   |
| Accounts receivable:                                                                                                                      |   |   |   |   |   |   |   |   |
| Oil and gas sales                                                                                                                         |   |   | 402,436 |   |   |   | 538,444 |   |
| Trade                                                                                                                                     |   |   | 31,855 |   |   |   | 63,455 |   |
| Related parties                                                                                                                           |   |   | - |   |   |   | 55 |   |
| Prepaid costs and expenses                                                                                                                |   |   | 111,471 |   |   |   | 17,161 |   |
| Total current assets                                                                                                                      |   |   | 688,522 |   |   |   | 779,554 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| Property and equipment, at cost                                                                                                           |   |   |   |   |   |   |   |   |
| Oil and gas properties, using the full cost method                                                                                        |   |   | 29,604,335 |   |   |   | 27,353,016 |   |
| Other                                                                                                                                     |   |   | 78,520 |   |   |   | 76,161 |   |
|                                                                                                                                      |   |   | 29,682,855 |   |   |   | 27,429,177 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| Less accumulated depreciation, depletion and amortization                                                                                 |   |   | 14,698,342 |   |   |   | 14,179,156 |   |
| Property and equipment, net                                                                                                               |   |   | 14,984,513 |   |   |   | 13,250,021 |   |
|                                                                                                                                      |   | $ | 15,673,035 |   |   | $ | 14,029,575 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                      |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| Current liabilities                                                                                                                       |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                                                                                                     |   | $ | 266,875 |   |   | $ | 301,160 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| Long-term debt                                                                                                                            |   |   | 2,150,000 |   |   |   | 700,000 |   |
| Asset retirement obligation                                                                                                               |   |   | 511,343 |   |   |   | 486,305 |   |
| Deferred income tax liabilities                                                                                                           |   |   | 802,597 |   |   |   | 902,757 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| Commitments and contingencies                                                                                                             |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| Stockholders' equity                                                                                                                      |   |   |   |   |   |   |   |   |
| Preferred stock - $1.00 par value;                                                                                                        |   |   |   |   |   |   |   |   |
| 10,000,000 shares authorized; none outstanding                                                                                            |   |   | - |   |   |   | - |   |
| Common stock - $0.50 par value; 40,000,000 shares authorized;                                                                             |   |   |   |   |   |   |   |   |
| 2,006,366 and 2,003,866 shares issued;1,949,199 and 1,919,866 shares outstanding as ofSeptember 30, 2010 and March 31, 2010, respectively |   |   | 1,003,183 |   |   |   | 1,001,933 |   |
| Additional paid-in capital                                                                                                                |   |   | 5,997,423 |   |   |   | 5,907,899 |   |
| Retained earnings                                                                                                                         |   |   | 5,231,954 |   |   |   | 5,156,138 |   |
| Treasury stock, at cost (57,167 and 84,000 shares as ofSeptember 30, 2010 and March 31, 2010, respectively)                               |   |   | (290,340 | ) |   |   | (426,617 | ) |
| Total stockholders' equity                                                                                                                |   |   | 11,942,220 |   |   |   | 11,639,353 |   |
|                                                                                                                                      |   | $ | 15,673,035 |   |   | $ | 14,029,575 |   |

----

| Mexco Energy Corporation and Subsidiaries         |   |
|---------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF OPERATIONS             |   |
| (Unaudited)                                       |   |
|                                              |   |
|                                              |   | Three Months Ended |   |   | Six Months Ended |   |
|                                              |   | September 30 |   |   | September 30 |   |
|                                              |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Operating revenue:                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Oil and gas                                       |   | $ | 783,990 |   |   | $ | 737,944 |   |   | $ | 1,616,000 |   |   | $ | 1,391,754 |   |
| Other                                             |   |   | 4,649 |   |   |   | 8,350 |   |   |   | 9,032 |   |   |   | 12,717 |   |
| Total operating revenues                          |   |   | 788,639 |   |   |   | 746,294 |   |   |   | 1,625,032 |   |   |   | 1,404,471 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Production                                        |   |   | 253,138 |   |   |   | 269,251 |   |   |   | 621,365 |   |   |   | 510,224 |   |
| Accretion of asset retirement obligation          |   |   | 8,544 |   |   |   | 7,879 |   |   |   | 16,974 |   |   |   | 15,607 |   |
| Depreciation, depletion, and amortization         |   |   | 267,691 |   |   |   | 275,072 |   |   |   | 519,186 |   |   |   | 538,534 |   |
| General and administrative                        |   |   | 199,544 |   |   |   | 198,229 |   |   |   | 447,683 |   |   |   | 430,414 |   |
| Total operating expenses                          |   |   | 728,917 |   |   |   | 750,431 |   |   |   | 1,605,208 |   |   |   | 1,494,779 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating profit (loss)                           |   |   | 59,722 |   |   |   | (4,137 | ) |   |   | 19,824 |   |   |   | (90,308 | ) |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expenses):                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                   |   |   | 22 |   |   |   | 61 |   |   |   | 26 |   |   |   | 227 |   |
| Interest expense                                  |   |   | (6,857 | ) |   |   | (8,737 | ) |   |   | (10,196 | ) |   |   | (18,361 | ) |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net other expense                                 |   |   | (6,835 | ) |   |   | (8,676 | ) |   |   | (10,170 | ) |   |   | (18,134 | ) |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss) before provision for income taxes |   |   | 52,887 |   |   |   | (12,813 | ) |   |   | 9,654 |   |   |   | (108,442 | ) |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income tax expense (benefit):                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                                           |   |   | 33,998 |   |   |   | - |   |   |   | 33,998 |   |   |   | - |   |
| Deferred                                          |   |   | (51,151 | ) |   |   | (171,163 | ) |   |   | (100,160 | ) |   |   | (198,789 | ) |
|                                              |   |   | (17,153 | ) |   |   | (171,163 | ) |   |   | (66,162 | ) |   |   | (198,789 | ) |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                        |   | $ | 70,040 |   |   | $ | 158,350 |   |   | $ | 75,816 |   |   | $ | 90,347 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per common share:                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                             |   | $ | 0.04 |   |   | $ | 0.08 |   |   | $ | 0.04 |   |   | $ | 0.05 |   |
| Diluted                                           |   | $ | 0.04 |   |   | $ | 0.08 |   |   | $ | 0.04 |   |   | $ | 0.05 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding:       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                             |   |   | 1,935,199 |   |   |   | 1,883,248 |   |   |   | 1,928,711 |   |   |   | 1,880,944 |   |
| Diluted                                           |   |   | 1,945,893 |   |   |   | 1,942,514 |   |   |   | 1,946,420 |   |   |   | 1,945,702 |   |

----

| Mexco Energy Corporation and Subsidiaries                 |   |
|-----------------------------------------------------------|--------|
| CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY |   |
| (Unaudited)                                               |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   | Common Stock Par Value |   |   | Treasury Stock |   |   | Additional Paid-In Capital |   |   | Retained Earnings |   |   | Total Stockholders’ Equity |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at March 31, 2010                                 |   | $ | 1,001,933 |   |   | $ | (426,617 | ) |   | $ | 5,907,899 |   |   | $ | 5,156,138 |   |   | $ | 11,639,353 |   |
| Net income                                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,776 |   |   |   | 5,776 |   |
| Issuance of stock throughoptions exercised                |   |   | 1,250 |   |   |   | - |   |   |   | 9,625 |   |   |   | - |   |   |   | 10,875 |   |
| Stock based compensation                                  |   |   | - |   |   |   | - |   |   |   | 3,668 |   |   |   | - |   |   |   | 3,668 |   |
| Balance at June 30, 2010                                  |   | $ | 1,003,183 |   |   | $ | (426,617 | ) |   | $ | 5,921,192 |   |   | $ | 5,161,914 |   |   | $ | 11,659,672 |   |
| Net Income                                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 70,040 |   |   |   | 70,040 |   |
| Issuance of stock forproperties                           |   |   | - |   |   |   | 136,277 |   |   |   | 28,479 |   |   |   | - |   |   |   | 164,756 |   |
| Excess tax benefits fromstock-based compensation          |   |   |   |   |   |   |   |   |   |   | 33,998 |   |   |   |   |   |   |   | 33,998 |   |
| Stock based compensation                                  |   |   | - |   |   |   | - |   |   |   | 13,754 |   |   |   | - |   |   |   | 13,754 |   |
| Balance at September 30, 2010                             |   | $ | 1,003,183 |   |   | $ | (290,340 | ) |   | $ | 5,997,423 |   |   | $ | 5,231,954 |   |   | $ | 11,942,220 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SHARE ACTIVITY                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock shares, issued:                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at March 31, 2010                                 |   |   |   |   |   |   | 2,003,866 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issued                                                    |   |   |   |   |   |   | 2,500 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at June 30, 2010                                  |   |   |   |   |   |   | 2,006,366 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issued                                                    |   |   |   |   |   |   | - |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at Sept. 30, 2010                                 |   |   |   |   |   |   | 2,006,366 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock shares, held in treasury:                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at March 31, 2010                                 |   |   |   |   |   |   | (84,000 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Acquisitions                                              |   |   |   |   |   |   | - |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at June 30, 2010                                  |   |   |   |   |   |   | (84,000 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Exchange for property                                     |   |   |   |   |   |   | 26,833 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at Sept. 30, 2010                                 |   |   |   |   |   |   | (57,167 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock shares, outstandingat September 30, 2010     |   |   |   |   |   |   | 1,949,199 |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| Mexco Energy Corporation and Subsidiaries                                                                 |   |
|-----------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                     |   |
| For the Six Months Ended September 30,                                                                    |   |
| (Unaudited)                                                                                               |   |
|                                                                                                      |   |   |   |   |   |   |
|                                                                                                      |   | 2010 |   |   | 2009 |   |
| Cash flows from operating activities:                                                                     |   |   |   |   |   |   |
| Net income                                                                                                |   | $ | 75,816 |   |   | $ | 90,347 |   |
| Adjustments to reconcile net income to net cashprovided by operating activities:                          |   |   |   |   |   |   |   |   |
| Deferred income tax benefit                                                                               |   |   | (100,160 | ) |   |   | (198,789 | ) |
| Excess tax benefit from share based payment arrangement                                                   |   |   | (33,998 | ) |   |   | - |   |
| Stock-based compensation                                                                                  |   |   | 17,422 |   |   |   | 15,896 |   |
| Depreciation, depletion and amortization                                                                  |   |   | 519,186 |   |   |   | 538,534 |   |
| Accretion of asset retirement obligations                                                                 |   |   | 16,974 |   |   |   | 15,607 |   |
| Other                                                                                                     |   |   | - |   |   |   | (2,038 | ) |
| Changes in assets and liabilities:                                                                        |   |   |   |   |   |   |   |   |
| (Increase) decrease in accounts receivable                                                                |   |   | 178,513 |   |   |   | (16,399 | ) |
| Increase in prepaid expenses                                                                              |   |   | (94,310 | ) |   |   | (33,256 | ) |
| Increase in income taxes payable                                                                          |   |   | 33,998 |   |   |   | - |   |
| Increase (decrease) in accounts payable and accrued expenses                                              |   |   | (15,574 | ) |   |   | 41,959 |   |
| Net cash provided by operating activities                                                                 |   |   | 597,867 |   |   |   | 451,861 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                                                     |   |   |   |   |   |   |   |   |
| Additions to oil and gas properties                                                                       |   |   | (1,631,713 | ) |   |   | (451,485 | ) |
| Acquisition of business                                                                                   |   |   | (478,000 | ) |   |   | - |   |
| Additions to other property and equipment                                                                 |   |   | (2,359 | ) |   |   | (4,108 | ) |
| Proceeds from sale of oil and gas properties and equipment                                                |   |   | 1,653 |   |   |   | 41,414 |   |
| Net cash used in investing activities                                                                     |   |   | (2,110,419 | ) |   |   | (414,179 | ) |
|                                                                                                      |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                                                     |   |   |   |   |   |   |   |   |
| Proceeds from exercise of stock options                                                                   |   |   | 10,875 |   |   |   | 92,792 |   |
| Reduction of long-term debt                                                                               |   |   | (445,000 | ) |   |   | (200,000 | ) |
| Proceeds from long-term debt                                                                              |   |   | 1,895,000 |   |   |   | 75,000 |   |
| Excess tax benefit from share based payment arrangement                                                   |   |   | 33,998 |   |   |   | - |   |
| Net cash provided by (used in) financing activities                                                       |   |   | 1,494,873 |   |   |   | (32,208 | ) |
|                                                                                                      |   |   |   |   |   |   |   |   |
| Net (decrease) increase in cash and cash equivalents                                                      |   |   | (17,679 | ) |   |   | 5,474 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at beginning of period                                                          |   |   | 160,439 |   |   |   | 223,583 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at end of period                                                                |   | $ | 142,760 |   |   | $ | 229,057 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |
|                                                                                                      |   |   |   |   |   |   |   |   |
| Supplemental disclosure of cash flow information:                                                         |   |   |   |   |   |   |   |   |
| Cash paid for interest                                                                                    |   | $ | 8,764 |   |   | $ | 18,899 |   |
| Income taxes paid                                                                                         |   |   | - |   |   |   | - |   |
|                                                                                                      |   |   |   |   |   |   |   |   |
| Non-cash investing and financing activities:                                                              |   |   |   |   |   |   |   |   |
| Asset retirement obligations                                                                              |   | $ | 8,064 |   |   | $ | 7,335 |   |
| Issuance of common stock in exchange for oil and gas properties                                           |   | $ | 164,756 |   |   |   | - |   |
| Acquisition of Southwest Texas Disposal Corporation resulting in theassumption of liabilities as follows: |   |   |   |   |   |   |   |   |
| Fair value of assets                                                                                      |   | $ | 487,868 |   |   |   | - |   |
| Cash paid                                                                                                 |   |   | (478,000 | ) |   |   | - |   |
| Liabilities assumed                                                                                       |   | $ | 9,868 |   |   |   | - |   |

----

----

| Proved oil and gas properties        |   | $      | 477,018 |   |
|--------------------------------------|--------|--------|---------|--------|
| Accounts receivable                  |   |   | 10,850  |   |
| Total assets acquired                |   |   | 487,868 |   |
|                                 |   |   |    |   |
| Accounts payable                     |   |   | (7,850  | )      |
| Asset retirement obligations assumed |   |   | (2,018  | )      |
| Net purchase price                   |   | $      | 478,000 |   |

| Carrying amount of asset retirement obligations as of April 1, 2010      |   | $      | 536,305 |   |
|--------------------------------------------------------------------------|--------|--------|---------|--------|
| Liabilities incurred                                                     |   |   | 8,064   |   |
| Liabilities settled                                                      |   |   | -       |   |
| Accretion expense                                                        |   |   | 16,974  |   |
| Carrying amount of asset retirement obligations as of September 30, 2010 |   |   | 561,343 |   |
| Less: Current portion                                                    |   |   | 50,000  |   |
| Non-Current asset retirement obligation                                  |   | $      | 511,343 |   |

----

| Grant-date fair value    | $5.15  |
|--------------------------|--------|
| Volatility factor        | 82.83% |
| Dividend yield           | -      |
| Risk-free interest rate  | 2.07%  |
| Expected term (in years) | 7      |

|                              |   | Number of Shares |    |   | Weighted Average Exercise Price Per Share |   |   | Weighted Aggregate Average Remaining Contract Life in Years |   |   | Intrinsic Value |   |
|-----------------------------------|--------|------------------|---------|--------|-------------------------------------------|--------|--------|-------------------------------------------------------------|--------|--------|-----------------|--------|
| Outstanding at March 31, 2010     |   |             | 107,500 |   |                                      | $      | 5.94   |                                                        |   |   | 2.51            |   |   | $ | 237,088 |   |
| Granted                           |   |             | 42,500  |   |                                      |   | 6.24   |                                                        |   |   |            |   |   |   |   |   |
| Exercised                         |   |             | (2,500  | )      |                                      |   | 4.35   |                                                        |   |   |            |   |   |   |   |   |
| Forfeited or Expired              |   |             | (7,500  | )      |                                      |   | 5.65   |                                                        |   |   |            |   |   |   |   |   |
| Outstanding at September 30, 2010 |   |             | 140,000 |   |                                      | $      | 6.08   |                                                        |   |   | 4.42            |   |   | $ | 38,163 |   |
|                              |   |             |    |   |                                      |   |   |                                                        |   |   |            |   |   |   |   |   |
| Vested at September 30, 2010      |   |             | 90,000  |   |                                      | $      | 6.15   |                                                        |   |   | 2.02            |   |   | $ | 18,313 |   |
| Exercisable at September 30, 2010 |   |             | 90,000  |   |                                      | $      | 6.15   |                                                        |   |   | 2.02            |   |   | $ | 18,313 |   |

----

----

|                                                     |   | Three Months Ended |      |   | Six Months Ended |   |
|----------------------------------------------------------|--------|--------------------|-----------|--------|------------------|--------|
|                                                     |   | September 30       |      |   | September 30     |   |
|                                                     |   | 2010               |      |   | 2009             |   |   | 2010 |   |   | 2009 |   |
| Net income                                               |   | $                  | 70,040    |   |             | $      | 158,350 |   |   | $ | 75,816 |   |   | $ | 90,347 |   |
|                                                     |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Shares outstanding:                                      |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Weighted avg. common shares outstanding – basic    |   |               | 1,935,199 |   |             |   | 1,883,248 |   |   |   | 1,928,711 |   |   |   | 1,880,944 |   |
| Effect of the assumed exercise of dilutive stock options |   |               | 10,694    |   |             |   | 59,266 |   |   |   | 17,709 |   |   |   | 64,758 |   |
| Weighted avg. common shares outstanding – dilutive |   |               | 1,945,893 |   |             |   | 1,942,514 |   |   |   | 1,946,420 |   |   |   | 1,945,702 |   |
|                                                     |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per common share:                               |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                    |   | $                  | 0.04      |   |             | $      | 0.08 |   |   | $ | 0.04 |   |   | $ | 0.05 |   |
| Diluted                                                  |   | $                  | 0.04      |   |             | $      | 0.08 |   |   | $ | 0.04 |   |   | $ | 0.05 |   |

----

----

|                        |   | Payments Due In (1): |      |
|-----------------------------|--------|----------------------|-----------|
|                        |   | Total                |      |   | less than 1 year |   |   | 1-3 years |   |   | 3 years |   |
| Contractual obligations:    |   |                 |      |   |   |   |   |   |   |   |   |   |
| Secured bank line of credit |   | $                    | 2,150,000 |   |   | $ | - |   |   | $ | 2,150,000 |   |   | $ | - |   |

|   | (1) | Does not include estimated interest of $59,000 less than 1 year and $177,000 1-3 years. |
|--------|-----|-----------------------------------------------------------------------------------------|

----

|                    |   | 2010   |    |   | 2009   |   |    | % Difference |   |
|-------------------------|--------|--------|---------|--------|--------|--------|---------|--------------|--------|
| Oil:                    |   |   |    |   |   |   |    |         |   |
| Revenue                 |   | $      | 318,059 |   |   | $      | 281,840 |         |   |   | 12.9 | % |
| Volume (bbls)           |   |   | 4,469   |   |   |   | 4,379   |         |   |   | 2.1 | % |
| Average Price (per bbl) |   | $      | 71.17   |   |   | $      | 64.40   |         |   |   | 10.5 | % |
|                    |   |   |    |   |   |   |    |         |   |   |   |   |
| Gas:                    |   |   |    |   |   |   |    |         |   |   |   |   |
| Revenue                 |   | $      | 465,931 |   |   | $      | 456,104 |         |   |   | 2.2 | % |
| Volume (mcf)            |   |   | 115,887 |   |   |   | 147,853 |         |   |   | (21.6 | %) |
| Average Price (per mcf) |   | $      | 4.02    |   |   | $      | 3.08    |         |   |   | 30.5 | % |

|                    |   | 2010   |    |   | 2009   |   |    | % Difference |   |
|-------------------------|--------|--------|---------|--------|--------|--------|---------|--------------|--------|
| Oil:                    |   |   |    |   |   |   |    |         |   |
| Revenue                 |   | $      | 653,116 |   |   | $      | 514,939 |         |   |   | 26.8 | % |
| Volume (bbls)           |   |   | 8,985   |   |   |   | 8,710   |         |   |   | 3.2 | % |
| Average Price (per bbl) |   | $      | 72.69   |   |   | $      | 59.12   |         |   |   | 23.0 | % |
|                    |   |   |    |   |   |   |    |         |   |   |   |   |
| Gas:                    |   |   |    |   |   |   |    |         |   |   |   |   |
| Revenue                 |   | $      | 962,884 |   |   | $      | 876,815 |         |   |   | 9.8 | % |
| Volume (mcf)            |   |   | 235,944 |   |   |   | 286,271 |         |   |   | (17.6 | %) |
| Average Price (per mcf) |   | $      | 4.08    |   |   | $      | 3.06    |         |   |   | 33.3 | % |

----

----

| Item 1. | Legal Proceedings |
|---------|-------------------|

| Item 1A. | Risk Factors |
|----------|--------------|

| Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds |
|---------------|-------------------------------------------------------------|

| Item 3.  | Defaults Upon Senior Securities |
|---------------|---------------------------------|

| Item 4.  | Removed and Reserved |
|---------------|----------------------|

| Item 5.  | Other Information |
|---------------|-------------------|

| Item 6.  | Exhibits |
|---------------|----------|

|   | 31.1 | Certification of the Chief Executive Officer of Mexco Energy Corporation |
|--------|------|--------------------------------------------------------------------------|

|   | 31.2 | Certification of the Chief Financial Officer of Mexco Energy Corporation |
|--------|------|--------------------------------------------------------------------------|

|   | 32.1 | Certification of the Chief Executive Officer and Chief Financial Officer of Mexco Energy Corporation pursuant to 18 U.S.C. §1350 |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------|

----

|                     | MEXCO ENERGY CORPORATION                                    |   |
|--------------------------|-------------------------------------------------------------|--------|
|                     | (Registrant)                                                |   |
|                     |                                                        |   |
|                     |                                                        |   |
| Dated: November 15, 2010 | /s/ Nicholas C. Taylor                                      |   |
|                     | Nicholas C. Taylor                                          |   |
|                     | President                                                   |   |
|                     |                                                        |   |
|                     |                                                        |   |
|                     |                                                        |   |
| Dated: November 15, 2010 | /s/ Tamala L. McComic                                       |   |
|                     | Tamala L. McComic                                           |   |
|                     | Executive Vice President, Treasurer and Assistant Secretary |   |