Biloxi Marsh Land Corporation (PINK SHEETS:BLMC) announces audited
results for the fourth quarter of 2005, year ending December 31,
2005 and provides update. Total revenue for the three months ending
December 31, 2005 was $3,178,394 compared to $7,385,207 for the
fourth quarter of 2004. Revenues for the fourth quarter of 2005
were negatively impacted by Hurricanes Katrina and Rita, with the
Company receiving no royalty revenue for the month of December
2005. Meanwhile for the year total revenue was $22,512,638 compared
to total revenue of $22,226,700 in 2004. The annual revenue
breakdown is as follows: 2005 revenue from oil and gas activity was
$21,258,425 compared to revenue of $21,267,614 in 2004. Dividend
and interest income for 2005 was $289,711 compared to $114,065 for
2004. In 2005 gains from the sale of investment securities were
$954,085 as compared to a net gain of $802,846 in 2004. For the
fourth quarter of 2005 net earnings were $2,240,705 or $.82 per
share compared to $4,435,356 or $1.61 per share for the same period
of 2004. Meanwhile, net earnings for the year increased to
$13,882,006 or $5.04 per share from $13,821,040 or $5.02 per share
in 2004. In 2005 The Meridian Resource and Exploration, LLC
(Meridian) completed the final phase of its 3D seismic program.
This 3D seismic survey was completed in four phases and covers
approximately 137 square miles of the Company's +/- 141 square
miles of titled acreage. As provided for in the Oil, Gas and
Mineral Lease between the Company and Meridian, we have taken
delivery of Phase I, II and III of the 3D seismic data which
includes company acreage plus adjacent land and water-bottoms
extending one mile in every direction beyond the bounds of our
acreage. Currently our 3D seismic inventory contains approximately
314 square miles covering Company property and adjacent areas. As
per letter agreement with Meridian, we are scheduled to take
delivery of Phase IV of the seismic data in April of 2006. After we
take delivery of this final phase the Company's 3D seismic
inventory should include approximately 375 to 400 square miles
covering Company property and adjacent areas. It should be noted
Meridian did not complete Phase V of its seismic survey as they
advised us was originally planned. This did not affect any of our
property. Management believes that the 3D data sets which Meridian
has already delivered to the Company and the seismic data acquired
as the result of the completion the final Phase will prove to be
valuable corporate assets. Though we were delayed by Hurricane
Katrina we are continuing to proactively use the data to our
strategic advantage. Toward this end the Company has retained a
geophysicist and a geologist who are currently in the process of
evaluating the seismic data in order to determine if there are any
additional prospects within the area covered by the 3D seismic
data. In addition to these efforts the Company recently marketed
its acreage and potential prospects during the Gulf Coast Prospects
Exposition in Lafayette, Louisiana and National Association of
Petroleum Engineers Expositions (NAPE) in Houston, Texas. We are
pleased with the response to our marketing effort and are hopeful
that it will result in future oil, gas and mineral agreements. Over
the past several years, Meridian has added significantly to the
pipeline infrastructure running through Company acreage. As
provided for in the pipeline right of way agreements the Company
has the right to use excess capacity in the pipelines for a fee and
has the option, not the obligation, to take over the pipelines if
Meridian chooses to abandon it. Management is very pleased with the
development of the pipeline infrastructure throughout our property
and believes that the right to use excess capacity and take over
the pipeline after abandonment may prove to be valuable for the
future development of our mineral interests. The primary term of
the lease between the Company and Meridian expired on December 15,
2005. As of the date of this letter the Company has approximately
82,000 acres open and available for exploration and development,
approximately 3,900 acres are held by production (HBP), and
approximately 4,300 acres are under the secondary term of the lease
between the Company and Meridian. During January of 2005 Meridian
successfully placed its BML 28-1 and S/L 18041-1 on production.
Correspondingly during 2005 Meridian successfully logged its BML
7-4 well, but according to Meridian this well has not been placed
on production because of completion problems. During 2005 Meridian
plugged and abandoned its BML 21-1 well as a dry hole. In August
and September of 2005 Hurricane Katrina and Rita severely impacted
all the production facilities supporting production emanating from
our property. To Meridian's credit they began placing wells back on
production during the first part of October and completed placing
all wells which were producing prior to the hurricanes on
production by the first part of November, with the exception of the
BML 28-1 well, which according to Meridian, may have to be
re-drilled due to severe damage to the Christmas tree.
Correspondingly, Manti Jambi, Inc. placed its BML 1 and 3 wells
back on production during November of 2005. In addition to the
Meridian wells, on December 31, 2005 the Manti Jambi, Inc.-BML 1
and 3 wells continued to produce natural gas on compression. As of
December 31, 2005 the combined gross daily production rate from 14
wells was approximately 45 million cubic feet (mmcf) with net daily
production accruing to the Company of approximately 5.0 mmcf. The
year end reserve study commissioned by the Company and completed by
an independent reservoir engineer estimates that as of December 31,
2005 the Company's "Developed Producing" proved reserves are 3.393
billion cubic feet (bcf) of natural gas and estimates that the
"Developed Non-Producing" proved reserves are .643 bcf, with the
"Proved Un-Developed" being .384 billion cubic feet, totaling 4.421
bcf of proved reserves . The same reserve study estimates the
productive life of the wells ranges from one to seven years with
slightly more then 38% of the proved reserves depleting prior to
the end of 2006. It should be noted that the current production and
the corresponding proved reserves are being produced from 9
producing units and other leased based production covering
approximately 3,900 acres of Company property, with the Company
owning an additional 85,500 +/- acres. The reserve study does not
cover or attempt to estimate un-proven reserves under any of these
85,500 +/- acres. As of this time, we offer no guidance as to
quantities of reserves, if any, under any of these 85,500 +/-
acres. Prior to 2004, the Company has historically declared one
dividend each year, during 2005 the Board of Directors declared
three dividends totaling $3.75 per share of outstanding common
stock. As of the middle of February our Metairie, Louisiana office
has been partially renovated and we have reopened for business with
our staff working out of their homes and the office. We hope to
have the renovations completed by the end of March. As previously
reported we were able to successfully evacuate and save all of our
electronic files including all processed and raw 3D seismic data
prior to Hurricane Katrina. Unfortunately, most of our paper files
were damaged by flood waters. The files have been restored through
a freeze drying process and are back in our possession. While the
vast majority of the papers contained in each file are readable,
all papers must be removed from the file folders and re-filed.
During this process we are scanning each paper so that we will have
electronic back up for all of our paper files. Prior to Hurricane
Katrina we retained the services of T. Baker Smith, Inc to develop
a Restoration and Stabilization Plan for our property. Due to
Hurricane Katrina we have extended the scope of this project and
retained additional technical experts to assist in formulating the
plan. We hope to have the plan finished by mid-year and are going
to use the Plan to seek Federal funding for restoration. T. Baker
Smith, Inc. is also in the process of determining the extent of the
damage to the property caused by Hurricanes Katrina and Rita. This
is being done by comparing pre-storm and post-storm satellite
imagery. While there was damage to the property, we are encouraged
by the preliminary results of this comparison. In addition to the
Restoration and Stabilization Plan the Company is setting up the
Biloxi Marsh Disaster Relief Fund Corporation. The Board has
approved a substantial donation to set up this fund and we plan to
match a portion of each donation received by the Biloxi Marsh
Disaster Relief Fund Corporation contributed by third parties, The
Company has implemented a cap on the funds which it intends to
match. The purpose of the Fund is to solicit additional funds and
provide funding for the rebuilding of St. Bernard Parish which was
devastated by Hurricane Katrina. The Biloxi Marsh Disaster Relief
Fund Corporation will have a Board of five people with strict
governance rules with KPMG providing auditing and accounting
services, all of which are designed to lend credibility to the
Relief Fund and the way it expends funds. William B. Rudolf,
President and CEO, commented: "We are pleased with the level of
revenue and earnings despite the fact that we did not receive any
royalty payment during the month of December. The Company's large
open acreage position combined with its sizeable 3D seismic
inventory should represent an opportunity for the company. As
previously stated we have retained a geologist and geophysicist, to
determine the extent of the potential opportunities. Senior
Management is involved in this process which will help us determine
the extent of our remaining potential reserves. Once this process
is completed Management will have a better understanding of the
strategic course the Company should take and the Board of Directors
will take appropriate steps to take advantage of any opportunities
that may be identified." 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", "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", "Statement of Revenues and Expenses and
Retained Earnings" and "Statement of Cash Flows" have been derived
from audited financial statements, but do not include the
information and footnotes that are an integral part of the complete
financial statements. A complete copy of the "Financial Statements
and Additional Information, Years Ended December 31, 2005 and 2004"
along with President's Report to shareholders dated March 10, 2006,
and the Company's Proxy Statement dated March 14, 2006, is
available through contacting the Company via email,
csbiloxi@bellsouth.net, or in writing, Attention: Investor
Relations, Biloxi Marsh Lands Corporation, 1605 Airline Drive,
Suite 103, Metairie, LA 70001. -0- *T BILOXI MARSH LANDS
CORPORATION Statements of Assets, Liabilities, and Stockholders'
Equity - Income Tax Basis December 31, 2005 and 2004 Assets 2005
2004 ----------- ----------- Current assets: Cash and cash
equivalents $ 3,545,301 224,786 Refundable federal taxes -- 219,787
Marketable debt and equity securities (at cost) 8,633,691 5,844,195
----------- ----------- Total current assets 12,178,992 444,573
----------- ----------- Investments: Marketable debt and equity
securities (at cost) 6,661,708 5,485,812 Land (at cost) 234,939
234,939 ----------- ----------- 6,896,647 11,564,946 -----------
----------- Property: Levees and office furniture and equipment
(net of accumulated depreciation of $173,497) ($168,553 at 2004) --
728 ----------- ----------- Total assets $19,075,639 12,010,247
=========== =========== Liabilities and Stockholders' Equity
Current liabilities: Federal income taxes payable $ 2,395,312 --
State income taxes payable 375,289 643,031 Payroll taxes payable
22,138 14,431 ----------- ----------- Total current liabilities
2,792,739 657,462 ----------- ----------- Stockholders' equity:
Common stock, $.001 par value - 20,000,000 shares authorized,
2,851,196 shares issued, 2,754,428 shares outstanding 47,520 47,520
Retained earnings 16,310,195 11,380,080 ----------- -----------
16,357,715 11,427,600 Less cost of treasury stock - 96,768 shares
(74,815) (74,815) ----------- ----------- 16,282,900 11,352,785
----------- ----------- Total liabilities and stockholders' equity
$19,075,639 12,010,247 =========== =========== BILOXI MARSH LANDS
CORPORATION Statements of Revenues and Expenses and Retained
Earnings - Income Tax Basis Years Ended December 31, 2005 and 2004
3 Months Ended 12 Months Ended December 31 December 31
------------------------- ------------------------- 2005 2004 2005
2004 ------------------------- ------------------------- Revenues:
Oil and Gas Lease bonuses and delayed rentals $ 541,496 1,240,262 $
1,943,308 3,603,203 Pipeline right of ways - 10,000 104,660 382,501
Royalties (net of production taxes) 2,528,262 5,647,817 19,210,457
17,281,910 Seismic permit fees - - - - ------------ ------------
------------ ------------ Total Oil and Gas 3,069,758 6,898,079
21,258,425 21,267,614 ------------ ------------ ------------
------------ Other: Dividends and interest 41,421 37,200 289,711
114,065 Gain on sale of securities 65,466 441,584 954,085 802,846
Surface Rentals (799) 8,344 7,869 38,414 Other 2,548 - 2,548 3,761
------------ ------------ ------------ ------------ Total Other
revenues 108,636 487,128 1,254,213 959,086 ------------
------------ ------------ ------------ Total Revenue 3,178,394
7,385,207 22,512,638 22,226,700 ------------ ------------
------------ ------------ Expenses Total Expenses 742,318 487,528
1,567,184 1,057,337 ------------ ------------ ------------
------------ Net Income before provision for income taxes 2,436,076
6,897,679 20,945,454 21,169,363 ------------ ------------
------------ ------------ Income taxes Provision for income taxes
195,371 2,462,323 7,063,448 7,348,323 ------------ ------------
------------ ------------ Net Income 2,240,705 4,435,356 13,882,006
13,821,040 Retained Earnings- beginning of period 14,062,752
9,699,152 11,380,080 4,789,413 ------------ ------------
------------ ------------ 16,303,457 14,134,508 25,262,086
18,610,453 Dividends (6,738) 2,754,428 8,951,891 7,230,373
------------ ------------ ------------ ------------ Retained
earnings- end of year 16,310,195 $11,380,080 16,310,195 $11,380,080
Per Share $ 0.82 $ 1.61 $ 5.04 $ 5.02 ------------ ------------
------------ ------------ *T
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