Biloxi Marsh Lands Corporation Provides Update Related to Hurricane Rita and Announces Partial Resumption of Production Shut in
October 07 2005 - 4:32PM
Business Wire
As previously announced, due to the flooding of its Metairie,
Louisiana offices Biloxi Marsh Lands Corporation (Pink Sheets:BLMC)
has temporarily relocated its offices. As of this time executive
offices are located in Edwards, Colorado while clerical, geological
and land department staff are operating from home offices in
Mandeville and Metairie, Louisiana. Our geophysical consultant has
temporarily relocated to Houston, Texas and will operate out of
Houston and then his Metairie, Louisiana office once conditions in
Metairie will permit. Our surface manager and environmental
consultant are operating in and out of St. Bernard Parish,
Louisiana where the Company's property is located and are
re-establishing posting and patrolling operations. All critical
electronic files, including but not limited to all 3D seismic data,
were successfully evacuated prior to Hurricane Katrina. Immediately
after Hurricane Katrina management placed Thunder Restorations,
Inc., a disaster recovery and document restoration firm, on stand
by. At the request of our management, Thunder Restorations, Inc.
pre-positioned its recovery team from its home base in Minneapolis,
Minnesota to Jackson, Mississippi and on Monday, September 12,
2005, with a private police escort arranged for by the Company, the
recovery team was able to recover all of our paper documents. The
paper documents were frozen, decontaminated and have been moved to
Thunder Restorations, Inc.'s facility to be kiln dried. According
to Thunder Restorations Inc. the recovery and restoration rate
should be over 95% and with the documents available for use by the
end of the year. Gutting and rebuilding of our offices has begun
and we expect that it will be ready for occupancy in two to three
months. After Hurricane Rita, on September 29, 2005 using a fixed
wing aircraft Biloxi Marsh Lands Corporation's environmental
consultant and surface manager conducted an additional aerial
over-flight of the Company's property. The aircraft flight path was
along the shorelines of Lake Borgne and Chandeleur Sound and the
interior marshes near Muscle Bay, Lake Eugenie, and the property
south of the Mississippi River Gulf Outlet. According to our
environmental consultant, at the time of the aerial survey the area
was still experiencing high water levels. The Lake Borgne and
Chandeleur Sound shorelines and the interior marshes appeared to be
impacted worst from Hurricane Rita than from Hurricane Katrina.
This was not unexpected since the rigidity of the marshes had
already been severely compromised by Hurricane Katrina before being
impacted by Hurricane Rita's storm surge and intense wave action.
While the property sustained significant damage due to the back to
back hurricanes it appears that the vast majority of the acreage is
still sustainable. Complete assessment of the extent of damage to
the marsh will not be fully completed until water levels recede and
on the ground inspection are completed. On the ground field
inspections are in the process of being conducted. Additionally,
the Company has retained the services of T. Baker Smith Inc. to
assist in the assessment of the damage to the Company's property
and develop a comprehensive Restoration and Stabilization Plan. It
is management's hope that the development of this Restoration and
Stabilization Plan will assist the Company in obtaining and
directing any Federal monies that may become available for marsh
restoration as the result of the effects Hurricane Katrina. We are
pleased to announced that as of the date of this release, according
to The Meridian Resource Corporation (NYSE:TMR) it has initiated
production equal to approximately 52% of its pre-hurricane Katrina
production as it completed the repairs and replacement of the
equipment at its Facility 1 and Facility 3. According to TMR's
recent press release, "Of the four main production facilities in
the BML area that incurred damage, Facility 1 resumed production on
Wednesday with an initial rate of approximately 16 million cubic
feet of gas per day ("Mmcf/d") gross (10.5 Mmcf/d net). The Company
anticipates that production from this facility will increase to
pre-storm levels (21 Mmcf/d gross, 13 Mmcf/d net) upon the
installation of new compression equipment which is expected within
three to four weeks. This facility receives production from three
wells, the BML 6-1, 6-2 and 6-3 located in the Company's Atlas
prospect area. Additionally, production from the SL 17958 well at
Facility 3 in the Apollo prospect area was returned to production
on Thursday at a rate of approximately 12 Mmcf/d gross (7.8 Mmcf/d
net)." According to TMR it "expects that it will continue to add
production from its BML project area over the course of the next
two to three weeks from the remaining wells at Facility 2, Facility
3 and Facility 4, all of which will have been returned to
production within 38-60 days of Hurricane Katrina's landfall."
Biloxi Marsh Lands Corporation may be contacted via telephone at
its Metairie telephone number 504.837.4337 or 214.536.2162 or email
at csbiloxi@bellsouth.net. Information will also be available on
the Company's website www.biloximarshlandscorp.com We plan to issue
updated press releases as the situation changes and new information
becomes available. Biloxi Marsh Lands Corporation owns
approximately 90,000 acres of marsh lands located in St. Bernard
Parish, Louisiana. As the landowner, it derives the vast majority
of its revenue from oil and gas exploration and production
activities that take place on or near the company's land. The
company also derives minimal revenues from surface rentals. This
news release contains forward-looking statements regarding oil and
gas discoveries, oil and gas exploration, development and
production activities and reserves. Accuracy of the forward-looking
statements depends on assumptions about events that change over
time and is thus susceptible to periodic change based on actual
experience and new developments. The Company cautions readers that
it assumes no obligation to update or publicly release any
revisions to the forward-looking statements in this report.
Important factors that might cause future results to differ from
these forward-looking statements include: variations in the market
prices of oil and natural gas; drilling results; unanticipated
fluctuations in flow rates of producing wells; oil and natural gas
reserves expectations; the ability to satisfy future cash
obligations and environmental costs; and general exploration and
development risks and hazards. Readers are cautioned not to place
undue reliance on forward-looking statements made by or on behalf
of the Company. Each such statement speaks only as of the day it
was made. The factors described above cannot be controlled by the
Company. When used in this report, the words "believes",
"estimates", "plans", "expects", "should", "hopeful", "outlook",
and "anticipates" and similar expressions as they relate to the
Company or its management are intended to identify forward-looking
statements.
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