Mexco Energy (MXC) 10-Q8 Nov 232024 Q2 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	6 Months Ended
Cover - shares	Sep. 30, 2023	Nov. 08, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2023
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--03-31
Entity File Number	1-31785
Entity Registrant Name	MEXCO ENERGY CORPORATION
Entity Central Index Key	0000066418
Entity Tax Identification Number	84-0627918
Entity Incorporation, State or Country Code	CO
Entity Address, Address Line One	415 West Wall Street
Entity Address, Address Line Two	Suite 475
Entity Address, City or Town	Midland
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	79701
City Area Code	(432)
Local Phone Number	682-1119
Title of 12(b) Security	Common Stock, par value $0.50 per share
Trading Symbol	MXC
Security Exchange Name	NYSEAMER
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		2,104,500

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Sep. 30, 2023	Mar. 31, 2023
Current assets
Cash and cash equivalents	$ 2,585,192	$ 2,235,771
Accounts receivable:
Oil and natural gas sales	800,051	1,366,784
Trade	1,875	7,031
Prepaid costs and expenses	47,273	56,502
Prepaid drilling	37,247	67,951
Total current assets	3,471,638	3,734,039
Property and equipment, at cost
Oil and gas properties, using the full cost method	46,750,776	45,391,634
Other	121,926	121,926
Accumulated depreciation, depletion and amortization	(33,083,461)	(32,215,095)
Property and equipment, net	13,789,241	13,298,465
Investments – cost basis	900,000	700,000
Operating lease, right-of-use asset	47,709	75,629
Other noncurrent assets	10,747	12,156
Total assets	18,219,335	17,820,289
Current liabilities
Accounts payable and accrued expenses	178,749	201,897
Operating lease liability, current	47,709	56,366
Total current liabilities	226,458	258,263
Long-term liabilities
Operating lease liability, long-term		19,263
Asset retirement obligations	697,552	710,276
Deferred income tax liabilities	149,862
Total long-term liabilities	847,414	729,539
Total liabilities	1,073,872	987,802
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;2,221,916 and 2,221,416 shares issued; and, 2,110,500 and 2,136,000 shares outstanding as of September 30, 2023 and March 31, 2023, respectively	1,110,958	1,110,708
Additional paid-in capital	8,437,680	8,321,145
Retained earnings	8,512,576	7,991,129
Treasury stock, at cost (111,416 and 85,416 shares, respectively)	(915,751)	(590,495)
Total stockholders’ equity	17,145,463	16,832,487
Total liabilities and stockholders’ equity	$ 18,219,335	$ 17,820,289

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2023	Jun. 30, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 1	$ 1
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.50	$ 0.50
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	2,221,916	2,221,416
Common stock, shares outstanding	2,110,500	2,136,000
Treasury stock, shares	111,416	85,416

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
Consolidated Statements of Operations (Unaudited) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Operating revenues:
Total operating revenues	$ 1,406,610	$ 2,324,792	$ 3,155,029	$ 4,774,765
Operating expenses:
Production	392,674	394,445	742,081	829,473
Accretion of asset retirement obligations	7,540	7,830	14,896	15,349
Depreciation, depletion, and amortization	382,180	384,379	868,366	771,507
General and administrative	305,543	297,956	646,512	588,199
Total operating expenses	1,087,937	1,084,610	2,271,855	2,204,528
Operating income	318,673	1,240,182	883,174	2,570,237
Other income (expenses):
Interest income	26,364	58	50,059	93
Interest expense	(1,079)	(3,561)	(2,160)	(6,692)
Net other income (expense)	25,285	(3,503)	47,899	(6,599)
Income before provision for income taxes	343,958	1,236,679	931,073	2,563,638
Income tax expense:
Current	13,346	24,963	46,164	53,250
Deferred	61,179		149,862
Total income tax expense	74,525	24,963	196,026	53,250
Net income	$ 269,433	$ 1,211,716	$ 735,047	$ 2,510,388
Income per common share:
Basic:	$ 0.13	$ 0.56	$ 0.35	$ 1.17
Diluted:	$ 0.12	$ 0.55	$ 0.34	$ 1.13
Weighted average common shares outstanding:
Basic:	2,122,336	2,149,416	2,129,213	2,149,416
Diluted:	2,174,713	2,218,511	2,178,719	2,217,627
Oil Sales [Member]
Operating revenues:
Total operating revenues	$ 1,099,806	$ 1,397,875	$ 2,529,484	$ 2,957,196
Natural Gas Sales [Member]
Operating revenues:
Total operating revenues	280,904	884,020	566,316	1,740,812
Other [Member]
Operating revenues:
Total operating revenues	$ 25,900	$ 42,897	$ 59,229	$ 76,757

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock, Common [Member]	Total
Balance at Mar. 31, 2022	$ 1,108,208	$ 8,133,982	$ 3,328,427	$ (346,001)	$ 12,224,616
Net income			1,298,672		1,298,672
Stock based compensation		25,571			25,571
Balance at Jun. 30, 2022	1,108,208	8,159,553	4,627,099	(346,001)	13,548,859
Balance at Mar. 31, 2022	1,108,208	8,133,982	3,328,427	(346,001)	12,224,616
Net income					2,510,388
Balance at Sep. 30, 2022	1,108,208	8,224,163	5,838,815	(346,001)	14,825,185
Balance at Jun. 30, 2022	1,108,208	8,159,553	4,627,099	(346,001)	13,548,859
Net income			1,211,716		1,211,716
Stock based compensation		34,431			34,431
Profit from purchase of stock by insider		30,179			30,179
Balance at Sep. 30, 2022	1,108,208	8,224,163	5,838,815	(346,001)	14,825,185
Balance at Mar. 31, 2023	1,110,708	8,321,145	7,991,129	(590,495)	$ 16,832,487
Balance, shares at Mar. 31, 2023					2,221,416
Balance, held in treasury, shares at Mar. 31, 2023					(85,416)
Net income			465,614		$ 465,614
Dividends paid			(213,600)		(213,600)
Issuance of stock through options exercised	250	2,712			2,962
Stock based compensation		54,975			54,975
Balance at Jun. 30, 2023	1,110,958	8,378,832	8,243,143	(590,495)	$ 17,142,438
Balance, shares at Jun. 30, 2023					2,221,416
Balance, held in treasury, shares at Jun. 30, 2023					(85,416)
Common stock shares, outstanding at Jun. 30, 2023					2,136,000
Balance at Mar. 31, 2023	1,110,708	8,321,145	7,991,129	(590,495)	$ 16,832,487
Balance, shares at Mar. 31, 2023					2,221,416
Balance, held in treasury, shares at Mar. 31, 2023					(85,416)
Net income					$ 735,047
Purchase of stock					$ (325,256)
Common stock shares, issued					500
Common stock shares, held in treasury, Acquisitions, shares					(26,000)
Balance at Sep. 30, 2023	1,110,958	8,437,680	8,512,576	(915,751)	$ 17,145,463
Balance, shares at Sep. 30, 2023					2,221,916
Balance, held in treasury, shares at Sep. 30, 2023					(111,416)
Common stock shares, outstanding at Sep. 30, 2023					2,110,500
Balance at Jun. 30, 2023	1,110,958	8,378,832	8,243,143	(590,495)	$ 17,142,438
Balance, shares at Jun. 30, 2023					2,221,416
Balance, held in treasury, shares at Jun. 30, 2023					(85,416)
Net income			269,433		$ 269,433
Stock based compensation		58,848			58,848
Purchase of stock				(325,256)	(325,256)
Balance at Sep. 30, 2023	$ 1,110,958	$ 8,437,680	$ 8,512,576	$ (915,751)	$ 17,145,463
Balance, shares at Sep. 30, 2023					2,221,916
Balance, held in treasury, shares at Sep. 30, 2023					(111,416)
Common stock shares, outstanding at Sep. 30, 2023					2,110,500

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
Consolidated Statements of Cash Flows (Unaudited) - USD ($)	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net income	$ 735,047	$ 2,510,388
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income tax expense	149,862
Stock-based compensation	113,823	60,002
Depreciation, depletion and amortization	868,366	771,507
Accretion of asset retirement obligations	14,896	15,349
Amortization of debt issuance costs	2,159	6,263
Changes in operating assets and liabilities:
Decrease in accounts receivable	571,889	124,486
Decrease in right-of-use asset	27,920	26,893
Decrease in prepaid expenses	9,229	9,540
Decrease in accounts payable and accrued expenses	(27,933)	(63,588)
Settlement of asset retirement obligations	(6,975)	(15,860)
Decrease in operating lease liability	(27,919)	(26,893)
Net cash provided by operating activities	2,430,364	3,418,087
Cash flows from investing activities:
Additions to oil and gas properties	(1,650,812)	(4,245,064)
Drilling refund		18,329
Investments in limited liability companies at cost	(200,000)	(25,000)
Proceeds from sale of oil and gas properties and equipment	306,513
Additions to other property and equipment		(1,718)
Net cash used in investing activities	(1,544,299)	(4,253,453)
Cash flows from financing activities:
Proceeds from exercise of stock options	2,962
Profits from purchase of stock by insider		30,179
Acquisition of treasury stock	(325,256)
Dividends paid	(213,600)
Debt issuance costs	(750)
Proceeds from long-term debt		500,000
Reduction of long-term debt		(500,000)
Net cash (used in) provided by financing activities	(536,644)	30,179
Net increase (decrease) in cash and cash equivalents	349,421	(805,187)
Cash and cash equivalents at beginning of period	2,235,771	1,370,766
Cash and cash equivalents at end of period	2,585,192	565,579
Non-cash investing and financing activities:
Asset retirement obligations	$ 2,495	$ 21,197

Nature of Operations

Nature of Operations	6 Months Ended
Nature of Operations	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations	1. Nature of Operations Mexco Energy Corporation (a Colorado corporation) and its wholly owned subsidiaries, Forman Energy Corporation (a New York corporation), Southwest Texas Disposal Corporation (a Texas corporation) and TBO Oil & Gas, LLC (a Texas limited liability company) (collectively, the “Company”) are engaged in the acquisition, exploration, development and production of crude oil, natural gas, condensate and natural gas liquids (“NGLs”). Most of the Company’s oil and gas interests are centered in the West Texas and Southeastern New Mexico; however, the Company owns producing properties and undeveloped acreage in fourteen states. All of the Company’s oil and gas interests are operated by others.

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	6 Months Ended
Basis of Presentation and Significant Accounting Policies	Sep. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	2. Basis of Presentation and Significant Accounting Policies Principles of Consolidation Estimates and Assumptions Interim Financial Statements Investments The Company accounts for investments of less than 3% in any limited liability companies at cost Reclassifications

Asset Retirement Obligations

Asset Retirement Obligations	6 Months Ended
Asset Retirement Obligations	Sep. 30, 2023
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations	3. Asset Retirement Obligations The Company’s asset retirement obligations (“ARO”) relate to the plugging of wells, the removal of facilities and equipment, and site restoration on oil and gas properties. The fair value of a liability for an ARO is recorded in the period in which it is incurred, discounted to its present value using the credit adjusted risk-free interest rate, and a corresponding amount capitalized by increasing the carrying amount of the related long-lived asset. The liability is accreted each period until the liability is settled or the well is sold, at which time the liability is removed. The related asset retirement cost is capitalized as part of the carrying amount of our oil and natural gas properties. The ARO is included on the consolidated balance sheets with the current portion being included in the accounts payable and other accrued expenses. The following table provides a rollforward of the AROs for the first six months of fiscal 2024: Schedule of Rollforward of Asset Retirement Obligations Carrying amount of asset retirement obligations as of April 1, 2023 $ 730,276 Liabilities incurred 2,495 Liabilities settled (30,115 ) Accretion expense 14,896 Carrying amount of asset retirement obligations as of September 30, 2023 717,552 Less: Current portion 20,000 Non-Current asset retirement obligation $ 697,552

Long Term Debt

Long Term Debt	6 Months Ended
Long Term Debt	Sep. 30, 2023
Debt Disclosure [Abstract]
Long Term Debt	4. Long Term Debt On December 28, 2018, the Company entered into a loan agreement (the “Agreement”) with West Texas National Bank (“WTNB”), which originally provided for a credit facility of $ 1,000,000 December 28, 2021 On February 28, 2020, the Agreement was amended to increase the credit facility to $ 2,500,000 1,500,000 March 28, 2026 Under the Agreement, interest on the facility accrues at a rate equal to the prime rate as quoted in the Wall Street Journal plus one-half of one percent ( 0.5% the Company will pay an unused commitment fee in an amount equal to one-half of one percent (0.5%) times the daily average of the unadvanced amount of the commitment 1,500,000 No principal payments are anticipated to be required through the maturity date of the credit facility, March 28, 2026 9,000 12,950 Amounts borrowed under the Agreement are collateralized by the common stock of the Company’s wholly owned subsidiaries and substantially all of the Company’s oil and gas properties. The Agreement contains customary covenants for credit facilities of this type including limitations on change in control, disposition of assets, mergers and reorganizations. The Company is also obligated to meet certain financial covenants under the Agreement and requires senior debt to earnings before interest, taxes, depreciation and amortization (“EBITDA”) ratios (Senior Debt/EBITDA) less than or equal to 4.00 to 1.00 measured with respect to the four trailing quarters and minimum interest coverage ratios (EBITDA/Interest Expense) of 2.00 to 1.00 for each quarter. In addition, this Agreement prohibits the Company from paying cash dividends on its common stock without written permission of WTNB. The Company obtained written permission from WTNB prior to declaring the special dividend on April 10, 2023 as discussed in Note 10. The Agreement does not permit the Company to enter into hedge agreements covering crude oil and natural gas prices without prior WTNB approval. There was no

Stock-based Compensation

Stock-based Compensation	6 Months Ended
Stock-based Compensation	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Stock-based Compensation	5. Stock-based Compensation The Company recognized stock-based compensation expense of $ 58,848 34,431 113,823 60,002 618,338 2.64 During the six months ended September 30, 2023, the Compensation Committee of the Board of Directors approved and the Company granted 32,000 12.68 279,360 31,000 18.05 385,640 ten years four years Included in the following table is a summary of the grant-date fair value of stock options granted and the related assumptions used in the Binomial models for stock options granted during the six months ended September 30, 2023 and 2022. All such amounts represent the weighted average amounts. Schedule of Grant-date Fair Value of Stock Options Granted and Assumptions Used Binominal Models Six Months Ended September 30 2023 2022 Grant-date fair value $ 8.73 $ 18.05 Volatility factor 56.5 % 57.3 % Dividend yield - - Risk-free interest rate 3.44 % 3.15 % Expected term (in years) 6.25 6.25 The following table is a summary of activity of stock options for the six months ended September 30, 2023: Summary of Activity of Stock Options Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contract Life in Years Intrinsic Value Outstanding at April 1, 2023 139,250 $ 8.36 7.04 $ 419,853 Granted 32,000 12.68 Exercised (500 ) 5.93 Forfeited or Expired - - Outstanding at September 30, 2023 170,750 $ 9.18 7.10 $ 375,525 Vested at September 30, 2023 90,500 $ 6.42 5.72 $ 448,753 Exercisable at September 30, 2023 90,500 $ 6.42 5.72 $ 448,753 During the six months ended September 30, 2023, stock options covering 500 2,416 2,962 no There were no Outstanding options at September 30, 2023 expire between August 2024 April 2033 3.34 18.05

Leases

Leases	6 Months Ended
Leases	Sep. 30, 2023
Leases
Leases	6. Leases The Company leases approximately 4,160 1,112 36 In June 2020, in exchange for a reduction in rent for the months of June and July 2020, the Company agreed to a 2-month extension to its current lease agreement at the regular monthly rate extending its current lease expiration date to July 2021 the Company agreed to extend its current lease at a flat (unescalated) rate for 36 months July 31, 2024 The Company determines an arrangement is a lease at inception. Operating leases are recorded in operating lease right-of-use asset, operating lease liability, current, and operating lease liability, long-term on the consolidated balance sheets. Operating lease right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s lease does not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate used at adoption was 3.75 The balance sheets classification of lease assets and liabilities was as follows: Schedule of Operating Lease Assets and Liabilities September 30, 2023 Assets Operating lease right-of-use asset, beginning balance $ 75,629 Current period amortization (27,920 ) Total operating lease right-of-use asset $ 47,709 Liabilities Operating lease liability, current $ 47,709 Operating lease liability, long term - Total lease liabilities $ 47,709 Future minimum lease payments as of September 30, 2023 under non-cancellable operating leases are as follows: Schedule of Future Minimum Lease Payments Lease Obligation Fiscal Year Ended March 31, 2024 $ 29,120 Fiscal Year Ended March 31, 2025 19,413 Total lease payments $ 48,533 Less: imputed interest (824 ) Operating lease liability 47,709 Less: operating lease liability, current (47,709 ) Operating lease liability, long term $ - Net cash paid for our operating lease for the six months ended September 30, 2023 and 2022 was $ 21,334 7,786

Income Taxes

Income Taxes	6 Months Ended
Income Taxes	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	7. Income Taxes On August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022 (“IRA 2022”). The IRA 2022, among other tax provisions, imposes a 15% corporate alternative minimum tax on corporations with book financial statement income in excess of $1.0 billion, effective for tax years beginning after December 31, 2022. The IRA 2022 also establishes a 1% excise tax on stock repurchases made by publicly traded U.S. corporations, effective for stock repurchases in excess of an annual limit of $1.0 million after December 31, 2022 The income tax provision consists of the following for the six months ended September 30, 2023 and 2022: Schedule of Income Tax Provision 2023 2022 Six Months Ended September 30 2023 2022 Current income tax expense: Federal $ - $ - State 46,164 53,250 Total current income tax expense 46,164 53,250 Deferred income tax expense: Federal 149,862 - State - - Total deferred income tax expense 149,862 - Total income tax expense: $ 196,026 $ 53,250 Federal income tax for the six months ended September 30, 2023 was $ 149,862 no A reconciliation of the provision for income taxes to income taxes computed using the federal statutory rate for the six months ended September 30 follows: Schedule of Reconciliation of Provision for Income Taxes 2023 2022 Tax expense at federal statutory rate (1) $ 195,525 $ 527,182 Statutory depletion carryforward (65,011 ) (98,658 ) Change in valuation allowance (3,578 ) (439,909 ) U. S. tax reform, corporate rate reduction - - Permanent differences 22,926 11,385 State income expense 46,164 53,250 Other - - Total income tax $ 196,026 $ 53,250 Effective income tax rate 21.1 % 2.1 % (1) The federal statutory rate was 21

Related Party Transactions

Related Party Transactions	6 Months Ended
Related Party Transactions	Sep. 30, 2023
Related Party Transactions [Abstract]
Related Party Transactions	8. Related Party Transactions Related party transactions for the Company primarily relate to shared office expenditures in addition to administrative and operating expenses paid on behalf of the principal stockholder. The total billed to and reimbursed by the stockholder for the quarters ended September 30, 2023 and 2022 was $ 8,612 13,649 17,994 23,735 3,893 7,786

Income Per Common Share

Income Per Common Share	6 Months Ended
Income Per Common Share	Sep. 30, 2023
Income per common share:
Income Per Common Share	9. Income Per Common Share The following is a reconciliation of the number of shares used in the calculation of basic and diluted net income per share for the three and six month periods ended September 30, 2023 and 2022. Schedule of Reconciliation of Basic and Diluted Net Income (loss) Per Share 2023 2022 2023 2022 Three Months Ended September 30, Six Months Ended September 30, 2023 2022 2023 2022 Net income $ 269,433 $ 1,211,716 $ 735,047 $ 2,510,388 Shares outstanding: Weighted avg. shares outstanding – basic 2,122,336 2,149,416 2,129,213 2,149,416 Effect of assumed exercise of dilutive stock options 52,377 69,095 49,506 68,211 Weighted avg. shares outstanding – dilutive 2,174,713 2,218,511 2,178,719 2,217,627 Income per common share: Basic $ 0.13 $ 0.56 $ .35 $ 1.17 Diluted $ 0.12 $ 0.55 $ .34 $ 1.13 For the three and six months ended September 30, 2023, 63,000 15.32 31,000 18.05

Stockholders_ Equity

Stockholders’ Equity	6 Months Ended
Stockholders’ Equity	Sep. 30, 2023
Equity [Abstract]
Stockholders’ Equity	10. Stockholders’ Equity In June 2023, the Board of Directors authorized the use of up to $ 1,000,000 0.50 On August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022 (“IRA 2022”). The IRA 2022, among other tax provisions, establishes a 1 1,000,000 During the six months ended September 30, 2023 there were 26,000 325,256 no 6,000 75,477 On April 10, 2023, the Board of Directors declared a special dividend of $ 0.10 213,600 Dividends declared by the Board and stock repurchased during the period are presented in the Company’s consolidated statements of changes in stockholders’ equity as dividends paid and purchases of treasury stock, respectively. Dividends paid and stock repurchased during the period are presented as cash used in financing activities in the Company’s consolidated statements of cash flows. Stock repurchases are included as treasury stock in the consolidated balance sheets.

Subsequent Events

Subsequent Events	6 Months Ended
Subsequent Events	Sep. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	11. Subsequent Events In October 2023, the Company signed a Letter of Intent regarding a 3 98% 200 5,000 980,000 The Company will retain the remaining 2% leasehold interest as a participating interest in the full unit at approximately .625% working interest 5% In October 2023, the Company entered into an agreement, pending completion of title search, to purchase small producing and non-producing mineral interests in 1,280 60,500 The Company completed a review and analysis of all events that occurred after the consolidated balance sheet date to determine if any such events must be reported and has determined that there are no other subsequent events to be disclosed.

Basis of Presentation and Sig_2

Basis of Presentation and Significant Accounting Policies (Policies)	6 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation
Estimates and Assumptions	Estimates and Assumptions
Interim Financial Statements	Interim Financial Statements
Investments	Investments The Company accounts for investments of less than 3% in any limited liability companies at cost
Reclassifications	Reclassifications

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	6 Months Ended
Asset Retirement Obligations (Tables)	Sep. 30, 2023
Asset Retirement Obligation Disclosure [Abstract]
Schedule of Rollforward of Asset Retirement Obligations	The following table provides a rollforward of the AROs for the first six months of fiscal 2024: Schedule of Rollforward of Asset Retirement Obligations Carrying amount of asset retirement obligations as of April 1, 2023 $ 730,276 Liabilities incurred 2,495 Liabilities settled (30,115 ) Accretion expense 14,896 Carrying amount of asset retirement obligations as of September 30, 2023 717,552 Less: Current portion 20,000 Non-Current asset retirement obligation $ 697,552

Stock-based Compensation (Table

Stock-based Compensation (Tables)	6 Months Ended
Stock-based Compensation (Tables)	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Grant-date Fair Value of Stock Options Granted and Assumptions Used Binominal Models	Included in the following table is a summary of the grant-date fair value of stock options granted and the related assumptions used in the Binomial models for stock options granted during the six months ended September 30, 2023 and 2022. All such amounts represent the weighted average amounts. Schedule of Grant-date Fair Value of Stock Options Granted and Assumptions Used Binominal Models Six Months Ended September 30 2023 2022 Grant-date fair value $ 8.73 $ 18.05 Volatility factor 56.5 % 57.3 % Dividend yield - - Risk-free interest rate 3.44 % 3.15 % Expected term (in years) 6.25 6.25
Summary of Activity of Stock Options	The following table is a summary of activity of stock options for the six months ended September 30, 2023: Summary of Activity of Stock Options Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contract Life in Years Intrinsic Value Outstanding at April 1, 2023 139,250 $ 8.36 7.04 $ 419,853 Granted 32,000 12.68 Exercised (500 ) 5.93 Forfeited or Expired - - Outstanding at September 30, 2023 170,750 $ 9.18 7.10 $ 375,525 Vested at September 30, 2023 90,500 $ 6.42 5.72 $ 448,753 Exercisable at September 30, 2023 90,500 $ 6.42 5.72 $ 448,753

Leases (Tables)

Leases (Tables)	6 Months Ended
Leases (Tables)	Sep. 30, 2023
Leases
Schedule of Operating Lease Assets and Liabilities	The balance sheets classification of lease assets and liabilities was as follows: Schedule of Operating Lease Assets and Liabilities September 30, 2023 Assets Operating lease right-of-use asset, beginning balance $ 75,629 Current period amortization (27,920 ) Total operating lease right-of-use asset $ 47,709 Liabilities Operating lease liability, current $ 47,709 Operating lease liability, long term - Total lease liabilities $ 47,709
Schedule of Future Minimum Lease Payments	Future minimum lease payments as of September 30, 2023 under non-cancellable operating leases are as follows: Schedule of Future Minimum Lease Payments Lease Obligation Fiscal Year Ended March 31, 2024 $ 29,120 Fiscal Year Ended March 31, 2025 19,413 Total lease payments $ 48,533 Less: imputed interest (824 ) Operating lease liability 47,709 Less: operating lease liability, current (47,709 ) Operating lease liability, long term $ -

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
Income Taxes (Tables)	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Schedule of Income Tax Provision	The income tax provision consists of the following for the six months ended September 30, 2023 and 2022: Schedule of Income Tax Provision 2023 2022 Six Months Ended September 30 2023 2022 Current income tax expense: Federal $ - $ - State 46,164 53,250 Total current income tax expense 46,164 53,250 Deferred income tax expense: Federal 149,862 - State - - Total deferred income tax expense 149,862 - Total income tax expense: $ 196,026 $ 53,250
Schedule of Reconciliation of Provision for Income Taxes	A reconciliation of the provision for income taxes to income taxes computed using the federal statutory rate for the six months ended September 30 follows: Schedule of Reconciliation of Provision for Income Taxes 2023 2022 Tax expense at federal statutory rate (1) $ 195,525 $ 527,182 Statutory depletion carryforward (65,011 ) (98,658 ) Change in valuation allowance (3,578 ) (439,909 ) U. S. tax reform, corporate rate reduction - - Permanent differences 22,926 11,385 State income expense 46,164 53,250 Other - - Total income tax $ 196,026 $ 53,250 Effective income tax rate 21.1 % 2.1 % (1) The federal statutory rate was 21

Income Per Common Share (Tables

Income Per Common Share (Tables)	6 Months Ended
Income Per Common Share (Tables)	Sep. 30, 2023
Income per common share:
Schedule of Reconciliation of Basic and Diluted Net Income (loss) Per Share	The following is a reconciliation of the number of shares used in the calculation of basic and diluted net income per share for the three and six month periods ended September 30, 2023 and 2022. Schedule of Reconciliation of Basic and Diluted Net Income (loss) Per Share 2023 2022 2023 2022 Three Months Ended September 30, Six Months Ended September 30, 2023 2022 2023 2022 Net income $ 269,433 $ 1,211,716 $ 735,047 $ 2,510,388 Shares outstanding: Weighted avg. shares outstanding – basic 2,122,336 2,149,416 2,129,213 2,149,416 Effect of assumed exercise of dilutive stock options 52,377 69,095 49,506 68,211 Weighted avg. shares outstanding – dilutive 2,174,713 2,218,511 2,178,719 2,217,627 Income per common share: Basic $ 0.13 $ 0.56 $ .35 $ 1.17 Diluted $ 0.12 $ 0.55 $ .34 $ 1.13

Basis of Presentation and Sig_3

Basis of Presentation and Significant Accounting Policies (Details Narrative)	6 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Cost method investments, percentage description	The Company accounts for investments of less than 3% in any limited liability companies at cost

Schedule of Rollforward of Asse

Schedule of Rollforward of Asset Retirement Obligations (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Mar. 31, 2023
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligation, Beginning Balance			$ 730,276
Asset Retirement Obligation, Liabilities Incurred			2,495
Asset Retirement Obligation, Liabilities Settled			(30,115)
Asset Retirement Obligation, Accretion Expense	$ 7,540	$ 7,830	14,896	$ 15,349
Asset Retirement Obligation, Ending Balance	717,552		717,552
Asset Retirement Obligation, Current	20,000		20,000
Asset Retirement Obligations, Noncurrent	$ 697,552		$ 697,552		$ 710,276

Long Term Debt (Details Narrati

Long Term Debt (Details Narrative) - USD ($)			6 Months Ended
Long Term Debt (Details Narrative) - USD ($)	Feb. 28, 2020	Dec. 28, 2018	Sep. 30, 2023
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Line of credit			$ 0
Loan Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Debt instrument covenant description			The Agreement contains customary covenants for credit facilities of this type including limitations on change in control, disposition of assets, mergers and reorganizations. The Company is also obligated to meet certain financial covenants under the Agreement and requires senior debt to earnings before interest, taxes, depreciation and amortization (“EBITDA”) ratios (Senior Debt/EBITDA) less than or equal to 4.00 to 1.00 measured with respect to the four trailing quarters and minimum interest coverage ratios (EBITDA/Interest Expense) of 2.00 to 1.00 for each quarter.
Loan Agreement [Member] \| West Texas National Bank [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Credit facility	$ 2,500,000	$ 1,000,000
Line of credit facility, maturity date	Mar. 28, 2026	Dec. 28, 2021
Line of credit, increase in borrowing base amount	$ 1,500,000
Debt instrument rate	0.50%
Commitment fee description	the Company will pay an unused commitment fee in an amount equal to one-half of one percent (0.5%) times the daily average of the unadvanced amount of the commitment
Line of credit available for borrowing			$ 1,500,000
Loan origination fee	$ 9,000
Legal fees	$ 12,950

Schedule of Grant-date Fair Val

Schedule of Grant-date Fair Value of Stock Options Granted and Assumptions Used Binominal Models (Details) - $ / shares	6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Grant-date fair value	$ 8.73	$ 18.05
Volatility factor	56.50%	57.30%
Dividend yield
Risk-free interest rate	3.44%	3.15%
Expected term (in years)	6 years 3 months	6 years 3 months

Summary of Activity of Stock Op

Summary of Activity of Stock Options (Details) - USD ($)	6 Months Ended		12 Months Ended
Summary of Activity of Stock Options (Details) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Mar. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of Shares, Exercised	(500)	0
Number of Shares, Forfeited or Expired	0	0
Share-Based Payment Arrangement, Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of Shares, Beginning Balance	139,250
Weighted Average Exercise Price Per Share, Beginning Balance	$ 8.36
Weighted Average Remaining Contract Life in Years, Ending Balance	7 years 1 month 6 days		7 years 14 days
Intrinsic Value, Beginning Balance	$ 419,853
Number of Shares, Granted	32,000
Weighted Average Exercise Price Per Share, Granted	$ 12.68
Number of Shares, Exercised	(500)
Weighted Average Exercise Price Per Share, Exercised	$ 5.93
Number of Shares, Forfeited or Expired
Weighted Average Exercise Price Per Share, Forfeited or Expired
Number of Shares, Ending Balance	170,750
Weighted Average Exercise Price Per Share, Ending Balance	$ 9.18
Intrinsic Value, Ending Balance	$ 375,525
Number of Shares, Vested	90,500
Weighted Average Exercise Price Per Share, Vested	$ 6.42
Weighted Aggregate Average Remaining Contract Life in Years, Vested	5 years 8 months 19 days
Intrinsic Value, Vested	$ 448,753
Number of Shares, Exercisable	90,500
Weighted Average Exercise Price Per Share, Exercisable	$ 6.42
Weighted Aggregate Average Remaining Contract Life in Years, Exercisable	5 years 8 months 19 days
Intrinsic Value, Exercisable	$ 448,753

Stock-based Compensation (Detai

Stock-based Compensation (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
Stock-based Compensation (Details Narrative) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock based compensation expenses			$ 113,823	$ 60,002
Total cost related to non-vested awards	$ 618,338		$ 618,338
Non-vested awards, weighted average period of recognition			2 years 7 months 20 days
Number of shares, exercised			500	0
Stock options intrinsic value exercised			$ 2,416
Proceeds from exercise of stock options			$ 2,962
Number of shares, forfeited or expired			0	0
Outstanding options exercise price, lower range			$ 3.34
Outstanding options exercise price, upper range			$ 18.05
Minimum [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Outstanding options expiration month and year			2024-08
Maximum [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Outstanding options expiration month and year			2033-04
Board of Directors [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Number of Shares, granted			32,000	31,000
Exercisable price per share			$ 12.68	$ 18.05
Fair value of stock option exercisable			$ 279,360	$ 385,640
Weighted average remaining contractual term exercise period			10 years
Award vesting period			4 years
General and Administrative Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock based compensation expense	$ 58,848	$ 34,431

Schedule of Operating Lease Ass

Schedule of Operating Lease Assets and Liabilities (Details) - USD ($)	Sep. 30, 2023	Mar. 31, 2023
Leases
Operating lease right-of-use asset, beginning balance	$ 75,629
Current period amortization	(27,920)
Total operating lease right-of-use asset	47,709	$ 75,629
Operating lease liability, current	47,709	56,366
Operating lease liability, long term		$ 19,263
Total lease liabilities	$ 47,709

Schedule of Future Minimum Leas

Schedule of Future Minimum Lease Payments (Details) - USD ($)	Sep. 30, 2023	Mar. 31, 2023
Leases
Fiscal Year Ended March 31, 2024	$ 29,120
Fiscal Year Ended March 31, 2025	19,413
Total lease payments	48,533
Less: imputed interest	(824)
Operating lease liability	47,709
Less: operating lease liability, current	(47,709)	$ (56,366)
Operating lease liability, long term		$ 19,263

Leases (Details Narrative)

Leases (Details Narrative)	1 Months Ended	6 Months Ended
Leases (Details Narrative)	Jun. 30, 2021	Sep. 30, 2023 USD ($) ft²	Sep. 30, 2022 USD ($)
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Area of lease \| ft²		4,160
Lease term		36 months
Lease term extension, description	the Company agreed to extend its current lease at a flat (unescalated) rate for 36 months	In June 2020, in exchange for a reduction in rent for the months of June and July 2020, the Company agreed to a 2-month extension to its current lease agreement at the regular monthly rate extending its current lease expiration date to July 2021
Lease expiration date	Jul. 31, 2024
Incremental borrowing rate		3.75%
Net cash paid for operating lease \| $		$ 21,334	$ 21,334
Sublease income \| $		$ 7,786
Shareholder [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Area of lease \| ft²		1,112

Schedule of Income Tax Provisio

Schedule of Income Tax Provision (Details) - USD ($)	3 Months Ended		6 Months Ended
Schedule of Income Tax Provision (Details) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Federal
State			46,164	53,250
Total current income tax expense	$ 13,346	$ 24,963	46,164	53,250
Federal			149,862
State
Total deferred income tax expense	61,179		149,862
Total income tax expense	$ 74,525	$ 24,963	$ 196,026	$ 53,250

Schedule of Reconciliation of P

Schedule of Reconciliation of Provision for Income Taxes (Details) - USD ($)		3 Months Ended		6 Months Ended
		Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Tax expense at federal statutory rate	[1]			$ 195,525	$ 527,182
Statutory depletion carryforward				(65,011)	(98,658)
Change in valuation allowance				(3,578)	(439,909)
U. S. tax reform, corporate rate reduction
Permanent differences				22,926	11,385
State income expense				46,164	53,250
Other
Total income tax expense		$ 74,525	$ 24,963	$ 196,026	$ 53,250
Effective income tax rate				21.10%	2.10%

[1]The federal statutory rate was 21

Income Taxes - Schedule of Reco

Income Taxes - Schedule of Reconciliation of Provision for Income Taxes (Details) (Parenthetical)	6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Federal income tax rate	21%	21%

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)		3 Months Ended		6 Months Ended
Income Taxes (Details Narrative) - USD ($)	Aug. 16, 2022	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income tax examination, description	The IRA 2022, among other tax provisions, imposes a 15% corporate alternative minimum tax on corporations with book financial statement income in excess of $1.0 billion, effective for tax years beginning after December 31, 2022. The IRA 2022 also establishes a 1% excise tax on stock repurchases made by publicly traded U.S. corporations, effective for stock repurchases in excess of an annual limit of $1.0 million after December 31, 2022
Fedral income tax		$ 61,179		$ 149,862

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
Related Party Transactions (Details Narrative) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Related Party Transaction [Line Items]
Due to related party	$ 3,893	$ 3,893	$ 7,786	$ 7,786
Related Party [Member]
Related Party Transaction [Line Items]
Reimbursement expenses	$ 8,612	$ 13,649	$ 17,994	$ 23,735

Schedule of Reconciliation of B

Schedule of Reconciliation of Basic and Diluted Net Income (loss) Per Share (Details) - USD ($)	3 Months Ended				6 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2022	Jun. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income per common share:
Net income	$ 269,433	$ 465,614	$ 1,211,716	$ 1,298,672	$ 735,047	$ 2,510,388
Weighted avg. shares outstanding – basic	2,122,336		2,149,416		2,129,213	2,149,416
Effect of assumed exercise of dilutive stock options	$ 52,377		$ 69,095		$ 49,506	$ 68,211
Weighted avg. shares outstanding – dilutive	2,174,713		2,218,511		2,178,719	2,217,627
Basic	$ 0.13		$ 0.56		$ 0.35	$ 1.17
Diluted	$ 0.12		$ 0.55		$ 0.34	$ 1.13

Income Per Common Share (Detail

Income Per Common Share (Details Narrative) - $ / shares	3 Months Ended		6 Months Ended
Income Per Common Share (Details Narrative) - $ / shares	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income per common share:
Antidilutive securities excluded from computation of earnings per share	63,000	31,000	63,000	31,000
Anti-dilutive stock options have a weighted average exercise price			$ 15.32	$ 18.05

Stockholders_ Equity (Details N

Stockholders’ Equity (Details Narrative) - USD ($)		1 Months Ended	3 Months Ended		6 Months Ended
Stockholders’ Equity (Details Narrative) - USD ($)	Apr. 10, 2023	Oct. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Aug. 16, 2022
Stock authorized repurchased shares for treasury							$ 1,000,000
Common stock, par value			$ 0.50	$ 0.50	$ 0.50
Excise tax percentage								1%
Stock repurchased during the period, shares					26,000	0
Stock repurchased during the period, value			$ 325,256		$ 325,256
Dividend	$ 213,600			$ 213,600
Subsequent Event [Member]
Stock repurchased during the period, shares		6,000
Stock repurchased during the period, value		$ 75,477
Board of Directors [Member]
Common stock, par value	$ 0.10			$ 0.50
Maximum [Member] \| Board of Directors [Member]
Stock authorized repurchased shares for treasury				$ 1,000,000

Subsequent Events (Details Narr

Subsequent Events (Details Narrative)	1 Months Ended
Subsequent Events (Details Narrative)	Oct. 31, 2023 USD ($) a	Sep. 30, 2023 ft²
Subsequent Event [Line Items]
Term assignment		36 months
Area of land \| ft²		4,160
Subsequent Event [Member] \| Loving And Ward Counties Texas [Member]
Subsequent Event [Line Items]
Term assignment	3 years
Leasehold interest	98%
Area of land \| a	200
Leasehold per net, value	$ 5,000
Purchase of land	$ 980,000
Leasehold interest description	The Company will retain the remaining 2% leasehold interest as a participating interest in the full unit at approximately .625% working interest
Royalty interest	5%
Subsequent Event [Member] \| Ector Midland And Upton Conties Texas [Member]
Subsequent Event [Line Items]
Area of land \| a	1,280
Purchase price	$ 60,500