Biloxi Marsh Lands Corporation (PINK SHEETS:BLMC) today announced
its un-audited results for the periods ending September 30, 2005.
Total revenue for the third quarter of 2005 was $5,333,193 compared
to total revenue of $5,020,013 for the same period of 2004. For the
first nine months of 2005 revenue was $19,334,244 compared to
$14,841,493 for the same period of 2004. During the third quarter
of 2005 revenues from mineral royalties increased to $4,772,521
from $4,568,127 for the same period of 2004. Revenues were impacted
during the third quarter of 2005 by lease bonus, and delayed rental
payments in the amount of $75,024 as compared to by lease bonus,
and delayed rental payments in the amount of $300,145 for same
period of 2004. Meanwhile operating expenses for the third quarter
of 2005 were $292,467 compared to operating expenses of $204,439
for the same period of 2004. Net earnings were $3,119,329 or $1.13
per share for the third quarter of 2005 compared to $3,043,574 or
$1.10 per share for the same period of 2004, and for the first nine
months of 2005 net earnings were $11,641,302 or $4.23 per share
compared to $9,385,684 or $3.41 per share for the same period of
2004. As previously announced, the Board of Directors declared a
cash dividend of $1.00 per share of common stock that was paid on
August 10, 2005 to shareholders of record as of the close of
business on July 21, 2005. This dividend is the third paid during
2005, bringing the total amount of dividends paid during the year
to $3.25 per share. Also, as previously announced, during the first
half of 2005, The Meridian Resource Corporation (NYSE:TMR)
completed field survey operations on Phase IV of its 3D seismic
survey covering approximately 48 square miles of Company property.
The majority of this area, which is located in the south central
portion of the Company's property, has not previously been included
in any 3D seismic surveys. Under the terms of the agreement with
TMR the Company has already taken delivery of approximately 314
square miles of 3D seismic data, and will take delivery of the
seismic data collected during Phase IV in April of 2006. As of
September 30, 2005 all wells producing hydrocarbons from the
Company's property were shut in due to damage to the various
production facilities caused by Hurricane Katrina. Between October
6th and October 19th, TMR was able to re-establish production from
8 of its 13 wells that were producing prior to Hurricane Katrina.
TMR focused its initial efforts on bringing wells back on line that
were producing at higher rates relative to other wells and
repairing those facilities which were able to be repaired the
quickest. As of the date of this press release Manti Jamba, Inc.
has not re-established production from the BML No. 1 or the BML No.
3. wells. On August 24, 2005, prior to Hurricane Katrina, the gross
daily production emanating from 15 wells operated by TMR and Manti
Jamba, Inc. was approximately 54 mmcf with approximately 6.6 mmcf
per day accruing to the Company. On October 25, 2005 the gross
daily production emanating from 8 wells operated by TMR was
approximately 42 mmcf with approximately 5.8 mmcf per day accruing
to the Company. Manti Jamba, Inc. has advised that it hopes to have
its two wells back on production by the end of the week of October
31, 2005, while TMR advises that it hopes to have production
re-established on the balance of its wells prior to the end of the
year. As previously announced, due to the flooding of its Metairie,
Louisiana offices Biloxi Marsh Lands Corporation 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. After Hurricane Rita, on September 29,
2005 using a fixed wing aircraft Biloxi Marsh Lands Corporation's
environmental consultant, surface manager and a representative of
T. Baker Smith, Inc. conducted an additional aerial over-flight of
the Company's property. Since that time, our surface manager and
environmental consultants have conducted several on the ground
inspections of the property. While the property did sustain damage
due to taking hits from back to back hurricanes, it appears that
the vast majority of the acreage is still sustainable.
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. This Plan is well on its way towards
finalization. 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. As of September 30, 2005, the Company placed TMR
on notice of its intent to take its natural gas production in kind.
This will allow the Company to market its own natural gas and
reduce the delay between the production month and the month in
which we receive payment. Under the terms of the Oil, Gas and
Mineral Lease with TMR, the Company expects to begin taking its gas
in kind during December of 2005. "We are very pleased with our
results for the first nine months which were significantly better
then our results for the first nine months of 2004. Hurricane
Katrina interrupted our production for slightly longer than one
month. Due to the lag in production payments relative to the
production date, this interruption in production should have a
slightly negative effect on our fourth quarter results. However,
the substantial increase in the price of natural gas, the fact that
current production is approximately 88% of pre-Katrina levels and
having the Manti wells scheduled to return to production shortly
should translate into good revenues for the month of December, 2005
and January 2006. With the primary term of the agreements between
the Company and TMR expiring on December 15, 2005, we are taking
steps to position ourselves for the future." commented William B.
Rudolf, President and Chief Executive Officer. 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. The Company maintains a website;
www.biloximarshlandscorp.com and strongly recommends that all
investors and interested parties visit the website to view
information relative to Hurricanes Katrina and Rita, historical
press releases, historical financial statements and general
information. 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. The following "Statements of Assets, Liabilities and
Stockholders' Equity" and "Statement of Revenues and Expenses and
Retained Earnings" have been derived from an interim un-audited
financial statement which does not include the information and
footnotes that are an integral part of a complete financial
statement. -0- *T BILOXI MARSH LANDS CORPORATION Statement of
Revenue and Expenses and Retained Earnings September 30, 2005 and
Comparable Period 3 Months Ended 9 Months Ended September 30
September 30 ------------------------ ------------------------ 2005
2004 2005 2004 ----------- ----------- ----------- -----------
Revenues: Oil and Gas Lease bonuses and delayed rentals $ 75,024 $
300,145 $ 1,401,812 $ 2,362,941 Pipeline right of ways - 88,876
104,660 372,501 Royalties (net of production taxes) 4,772,521
4,568,127 16,682,195 11,634,093 Seismic permit fees - -----------
----------- ----------- ----------- Total Oil and Gas 4,847,545
4,957,148 18,188,667 14,369,535 ----------- ----------- -----------
----------- Other: Dividends and interest 104,758 30,256 248,290
76,865 Gain on sale of securities 372,222 (1,222) 888,620 361,262
Surface Rentals 8,668 30,070 8,668 30,070 Other - 3,761 - 3,761
----------- ----------- ----------- ----------- Total Other
revenues 485,648 62,865 1,145,577 471,958 ----------- -----------
----------- ----------- Total Revenue 5,333,193 5,020,013
19,334,244 14,841,493 ----------- ----------- -----------
----------- Expenses Total Expenses 292,467 204,439 824,865 569,809
----------- ----------- ----------- ----------- Net Income before
provision for income taxes 5,040,726 4,815,574 18,509,379
14,271,684 ----------- ----------- ----------- ----------- Income
taxes Provision for income taxes 1,921,397 1,772,000 6,868,077
4,886,000 ----------- ----------- ----------- ----------- Net
Income 3,119,329 3,043,574 11,641,302 9,385,684 Retained Earnings-
beginning of period 13,697,851 9,410,006 11,380,080 4,789,413
----------- ----------- ----------- ----------- 16,817,180
12,453,580 23,021,382 14,175,097 Dividends 2,754,428 2,754,428
8,958,630 4,475,945 ----------- ----------- ----------- -----------
Retained earnings- end of year 14,062,752 9,699,152 14,062,752
9,699,152 Per Share $ 1.13 $ 1.10 (a) $ 4.23 $ 3.41 (a) -----------
----------- ----------- ----------- (a) - Adjusted for a 4 for 1
stock split effective June 1, 2004 *T -0- *T BILOXI MARSH LANDS
CORPORATION Statements of Assets, Liabilities, and Stockholders'
Equity - Income Tax Basis September 30, 2005 and 2004 Assets 2005
2004 ----------- ----------- Current assets: Cash and cash
equivalents $ 1,991,784 4,697,292 Refundable state income taxes --
-- Refundable federal taxes -- -- ----------- ----------- Total
current assets 1,991,784 4,697,292 ----------- -----------
Investments: Marketable debt and equity securities - at cost
14,349,111 5,145,490 Land - at cost 234,939 234,939 -----------
----------- 14,584,050 5,380,429 ----------- ----------- Property:
Levees and office furniture and equipment (net of accumulated
depreciation of $168,553 ($161,476 at 2004) 2,898 2,041 -----------
----------- Total assets $16,578,732 10,079,762 ===========
=========== Liabilities and Stockholders' Equity Current
liabilities: Federal income taxes payable $ 2,221,293 407,084 State
income taxes payable 320,149 -- Payroll taxes payable 1,833 821
----------- ----------- Total current liabilities 2,543,275 407,905
----------- ----------- Stockholders' equity: Common stock, no par
value - 20,000,000 shares authorized, 2,851,196 shares issued,
2,754,428 shares outstanding 47,520 47,520 Retained earnings
14,062,752 9,699,152 ----------- ----------- 14,110,272 9,746,672
Less cost of treasury stock - 96,768 shares (74,815) (74,815)
----------- ----------- 14,035,457 9,671,857 -----------
----------- Total liabilities and stockholders' equity $16,578,732
10,079,762 =========== =========== *T
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