Biloxi Marsh Land Corporation (PINK SHEETS:BLMC) announces audited
results for the fourth quarter of 2006, year ending December 31,
2006 and provides update. Total revenue for the three months ending
December 31, 2006 was $1,534,839 compared to $3,178,394 for the
fourth quarter of 2005. Meanwhile for the year, total revenue was
$14,979,801 compared to total revenue of $22,512,638 in 2005. The
annual revenue breakdown is as follows: 2006 revenue from oil and
gas activity was $14,040,006 compared to revenue of $21,258,421 in
2005. It should be noted that 2006 included 14 monthly natural gas
production payments as compared to the normal 12 monthly payments
(5 payments received during Q1-2006; 3 payments received during
Q2-2006; 3 payments received during Q3-2006; 3 payments received
during Q4-2006). The increased number of payments received during
Q1-2006 was due to a timing difference and was a one time event due
to the Company taking its gas �in kind� as of December of 2005.
Dividend and interest income for 2006 was $814,173 compared to
$289,711 for 2005. In 2006 we incurred a loss from the sale of
investment securities in the amount of $59,088 as compared to a net
gain of $954,085 in 2005. Expenses for the fourth quarter of 2006
were $551,667 compared to $742,318 for the fourth quarter of 2005.
Meanwhile for the year, total expenses were $1,821,754 compared to
$1,567,184 for the prior year. The increase in expenses was mainly
due to the contribution made to the Biloxi Marsh Disaster Relief
Fund, the development of the Biloxi Marsh Stabilization and
Restoration Plan and hurricane Katrina related expenses. For the
fourth quarter of 2006 net earnings were $728,063 or $.26 per share
compared to $2,240,705 or $.81 per share for the same period of
2005. Meanwhile, net earnings for the year were $9,129,861 or $3.31
per share compared to $13,882,006 or $5.04 per share in 2005. We
reported at the end of last year that the company had approximately
82,000 acres open and available for exploration and development. We
also reported that the company was employing a marketing effort
which it hoped would result in future oil, gas and mineral
agreements. On December 15, 2006 we announced the formation of B
& L Exploration, LLC (BLX) of which the company owns 75%. We
also announced the placement of our first five well drilling
package with the Manti Group. The Manti Group is obligated to drill
at least three of the five prospects and hopes to commence drilling
the first well located on company property by the end of March
2007. The agreement between the company and the Manti Group and the
execution of two accompanying 400 acre oil, gas and mineral leases
evidences the initial success of our marketing efforts. It should
be noted the establishment of BLX signifies our more active
management strategy employed in an effort to seek opportunities
outside of the confines of our property�s physical boundaries. Our
goal is to use all of our available assets to obtain revenue
interests in newly drilled wells with minimal related cash
expenditures. On January 25, 2007 we announced the company's and
BLX's participation in the NAPE Expo in Houston, Texas. We
presented our acreage position showing deep regional Tuscaloosa
exploration opportunities developed over the past 12 to 18 months
using existing geological well control and 3D seismic data. We also
presented additional prospects targeting the Tex W, Big Hum and
Cris I sand intervals. We are pleased with the interest expressed
during the NAPE Expo and are hopeful that our ongoing efforts will
result in future oil, gas and mineral agreements. At the end of
last year we reported that The Meridian Resource and Exploration,
LLC (TMR) had placed all of its wells back online that were shut-in
as a result of hurricane Katrina with the exception of the BML 28-1
well. We are pleased to report that this well was placed back
online on June 9, 2006. As of December 31, 2006 the combined gross
daily production rate from 13 wells was approximately 22 million
cubic feet (mmcf) with net daily production accruing to the Company
of approximately 2.4 mmcf. The year end reserve study commissioned
by the Company and completed by an independent reservoir engineer
estimates that as of December 31, 2006 the Company�s �Developed
Producing� proved reserves are 1.522 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 .337
billion cubic feet, totaling 2.502 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 31% of the proved
reserves depleting prior to the end of 2007. Prior to 2004, the
Company has paid one dividend each year, during 2006 the Board of
Directors paid two dividends totaling $4.00 per share of
outstanding common stock or $11,017,712. Without the addition of
reserves it is not realistic to expect that this payment level will
be obtainable in 2007. William B. Rudolf, President and CEO,
commented: �We commented at the end of last year that our
management would take appropriate steps to take advantage of any
opportunities that we may identify. We believe that the
establishment of BLX and the placement of our first five well
drilling package illustrates our commitment to move the company
forward. It is very important for all of our investors to
understand that our ongoing strategy is to use all of our assets to
obtain revenue interests in newly drilled wells with minimal
related capital outlays. While we can not guarantee the success of
each newly drilled well, our goal is to obtain an interest in
multiple wells, on and off of our property, increasing our
opportunity for success.� Beginning with the first quarter of 2007
the company will start reporting its financial statements using the
accrual reporting method instead of the cash reporting method used
currently. We remind our shareholders and interested parties that
St. Bernard Parish, Louisiana, the Parish where our property is
located, was indescribably devastated by Hurricane Katrina. To
assist in the Parish�s rebuilding the Company has established and
funded the Biloxi Marsh Disaster Relief Fund Corporation. Detailed
information about the fund is available on its website
www.selarelief.com During 2006 the fund applied for and received
IRS 501 (c) (3) tax exempt status making all contributions to the
fund tax deductible. Those living outside the hurricane affected
zone and all interested parties are asked to remember the people of
St. Bernard Parish, Louisiana by donating to the Biloxi Marsh
Disaster Relief Fund Corporation. You may send a check to the fund
at the company�s address or contribute using a credit card on the
Fund�s website: www.selarelief.com The Company maintains a website,
www.biloximarshlandscorp.com, and we strongly recommend that all
investors and interested parties visit the website to view
historical press releases, historical financial statements and
general information about the company. 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, 2006 and 2005�
along with the 2007 President�s Report to shareholders, and the
Company�s Proxy Statement dated March 16, 2007, will be 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.
BILOXI MARSH LANDS CORPORATION Statements of Assets, Liabilities,
and Stockholders' Equity - Income Tax Basis � December 31, 2006 and
2005 � � Assets 2006� 2005� � Current assets: Cash and cash
equivalents $ 1,232,847� $ 3,545,301� Marketable debt securities -
at cost 4,732,349� 8,633,691� Total current assets 5,965,196�
12,178,992� Investments: Other investments 1,775,995� -� Marketable
debt and equity securities - at cost 7,183,412� 6,661,708� Land -
at cost 234,939� 234,939� 9,194,346� 6,896,647� Property: Levees
and office furniture and equipment (net of accumulated depreciation
of $205,004) -� -� ($173,497 at 2005) -� -� Total assets $
15,159,542� $ 19,075,639� � Liabilities and Stockholders' Equity
Current liabilities: Federal income taxes payable $ 697,035� $
2,395,312� State income taxes payable 34,132� 375,289� Payroll
taxes payable 33,326� 22,138� Total current liabilities 764,493�
2,792,739� � Stockholders' equity: Common stock, par value $.001 -
20,000,000 shares authorized, 2,851,196 shares issued, 2,754,428
shares outstanding 47,520� 47,520� Retained earnings 14,422,344�
16,310,195� 14,469,864� 16,357,715� Less cost of treasury stock -
96,768 shares (74,815) (74,815) 14,395,049� 16,282,900� Total
liabilities and stockholders' equity $ 15,159,542� $ 19,075,639�
BILOXI MARSH LANDS CORPORATION Statements of Revenues and Expenses
and Retained Earnings December 31, 2006 and 2005 � � � � � � 3
Months Ended 12 Months Ended December 31 December 31 � 2006� 2005�
2006� 2005� Revenues: Oil and Gas Lease bonuses and delayed rentals
$ 99,000� $ 541,496� $ 314,121� $ 1,943,308� Pipeline right of ways
25,000� -� 25,000� 104,660� Royalties (net of production taxes)
1,098,220� 2,528,262� 13,700,885� 19,210,457� � Total Oil and Gas
1,222,220� 3,069,758� 14,040,006� 21,258,425� � Other: Partnership
income 169,659� -� 169,659� -� Dividends and interest 133,419�
41,421� 814,173� 289,711� Gain on sale of securities -� 65,466�
(59,088) 954,085� Surface rentals 9,541� (799) 15,051� 7,869� Other
-� 2,548� -� 2,548� � Total other revenue 312,619� 108,636�
939,795� 1,254,213� � Total revenue 1,534,839� 3,178,394�
14,979,801� 22,512,638� � Expenses � Total expenses 551,667�
742,318� 1,821,754� 1,567,184� � Net income before provision for
income taxes 983,172� 2,436,076� 13,158,047� 20,945,454� � Income
taxes Provision for income taxes 255,109� 195,371� 4,028,186�
7,063,448� � Net Income 728,063� 2,240,705� 9,129,861� 13,882,006�
� Retained earnings-beginning of period 19,203,137� 14,062,752�
16,310,195� 11,380,080� 19,931,200� 16,303,457� 25,440,056�
25,262,086� Dividends 5,508,856� (6,738) 11,017,712� 8,951,891�
Retained earnings-end of year $ 14,422,344� $ 16,310,195� $
14,422,344� $ 16,310,195� � � � � Net Income Per Share $ 0.26� $
0.81� $ 3.31� $ 5.04�
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