Biloxi Marsh Lands Corporation (PINK SHEETS:BLMC) today announced
its un-audited results for the periods ending June 30, 2007. Due to
the company�s earnings exceeding the revenue threshold tests under
income tax regulations, the company was required to file its income
tax returns using the accrual basis of tax accounting. Effective
January 1, 2007 to achieve consistency in reporting the company
changed its method of financial reporting from the cash receipts
and disbursements method to the accrual method. The change in
reporting method has no material effect on our cash flows. Total
revenue for the second quarter of 2007 was $1,233,908 compared to
total revenue of $2,243,971 for the same period of 2006. For the
first six months of 2007 revenue was $2,669,893 compared to
$5,727,622 for the same period of 2006. During the second quarter
of 2007, revenues from mineral royalties were $1,241,499 compared
to $2,040,359 for the same period of 2006. It should be noted that
the company was able to expense its share of the vast majority of
intangible drilling costs related to drilling three wells during
the first half of 2007 which is reflected in the attached Statement
of Revenues and Expenses and Retained Earnings as a deduction
against other income. For the first half of 2007, gains on the sale
of investments were $312,312 compared to no gains during the first
half of 2006. Meanwhile, operating expenses for the second quarter
of 2007 were $256,664 compared to operating expenses of $487,971
for the same period of 2006. Net earnings were $696,463 or $.25 per
share for the second quarter of 2007 compared to $1,517,914 or $.55
per share for the same period of 2006, and for the first half of
2007 net earnings were $1,550,235 or $.56 per share compared to
$3,756,799 or $1.36 per share for the same period of 2006. As of
June 30, 2007, the combined gross daily production from 15 wells
including those operated by The Meridian Resource &
Exploration, LLC and Manti Jambi, Inc. was approximately 19 mmcf
with net daily production accruing to the company of approximately
2.1 mmcf. As previously announced, the company�s partially owned
subsidiary B & L Exploration, LLC (BLX), of which the company
owns 75%, placed its first drilling program with the Manti Group.
As of the date of this release, The Manti Group has drilled a total
of three wells on each of the following prospects East Lena Lagoon,
Redfish Bend and Lost Pearl, successfully completing Redfish Bend
and Lost Pearl as commercial natural gas wells and plugging East
Lena Lagoon as non-commercial. East Lena Lagoon is located on
company property while Redfish Bend and Lost Pearl are located in
state waters. Electric logs indicated approximately 36 net feet
(TVD) of natural gas pay sands in Redfish Bend with the top of the
pay sand encountered at approximately 6,024� TVD. After completion
operations Redfish Bend was flow tested at maximum daily rate of
approximately 5.3 mmcf on a 23/64ths choke with flowing tube
pressure of approximately 1,944 psi with no water production.
Meanwhile, electric logs indicated approximately 30 net feet (TVD)
of natural gas pay sands in the Lost Pearl with the top of the pay
sand encountered at approximately 5,830� TVD. Lost Pearl was flow
tested at a maximum daily rate of approximately 5.4 mmcf on a
24/64ths choke with flowing tube pressure of approximately 1,925
psi with no water production. We are advised by the Manti Group
that they hope on to have both wells on production by the end of
the third quarter. After the application of its carried working
interest BLX will have a cumulative 21.25% working interest in each
well. The partnership including the Manti Group and BLX has a 72%
Net Revenue Interest (NRI) in each well. During the second quarter
of 2007, BLX placed its second five well drilling package with a
group made up of Kaiser-Francis Gulf Coast, L.L.C., Gulf Explorer,
L.L.C. and Ralaco Ventures, L.L.C. The prospects in this package
have similar depth objectives to Redfish Bend and Lost Pearl. Gulf
Production Company, Inc., an affiliate of Gulf Explorer, L.L.C.,
will be the operator and hopes to spud the first well in this
package by September 15, 2007. �While we are disappointed with the
results of East Lena Lagoon due to its location on company
property, we are very pleased with the results of Redfish Bend and
Lost Pearl. Redfish Bend and Lost Pearl have similar geological and
geophysical characteristics to the prospects in the next drilling
package which gives us reason for cautious optimism. We are clearly
aware, as our shareholders should be, of the inherent risks
involved as we move forward. Our new partnership with
Kaiser-Francis, Gulf Explorer and Ralaco is a testimony to the
success of the strategy implemented by management and we are
privileged to be associated with this group as well as the Manti
Group. While there is no guarantee of success, our geophysical and
geological staff is working hard to develop and place additional
prospects,� 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 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. � BILOXI
MARSH LANDS CORPORATION Statements of Assets, Liabilities, and
Stockholders' Equity June 30, 2007 and Comparable Period � � Assets
2007 � 2006 � Accrual Accrual Current assets: Cash and cash
equivalents $ 1,948,053 $ 3,328,370 Royalty Receivable 513,010
1,045,605 Accrued Interest Receivable 66,825 115,262 State Income
Taxes Receivable 94,725 � - � Total current assets 2,622,613 �
4,489,237 � Investments: Other Investments 1,346,164 - Marketable
debt and equity securities - at cost 12,923,065 19,627,771 Land -
at cost 234,939 � 234,939 � 14,504,168 � 19,862,710 � � � Total
assets $ 17,126,781 � $ 24,351,947 � Liabilities and Stockholders'
Equity � Current liabilities: Federal income taxes payable $ 3,196
$ 3,929,519 State income taxes payable - 548,900 Deferred tax
liability 924,000 1,540,000 Other current liabilities 93,719 61,322
Payroll taxes payable 2,377 � 1,695 � Total current liabilities
1,023,292 � 6,081,436 � 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 16,130,784 � 18,297,806 � 16,178,304 18,345,326 Less cost
of treasury stock - 96,768 shares (74,815 ) (74,815 ) 16,103,489 �
18,270,511 � Total liabilities and stockholders' equity $
17,126,781 � $ 24,351,947 � � BILOXI MARSH LANDS CORPORATION
Statements of Revenues and Expenses and Retained Earnings June 30,
2007 and Comparable Period � � 3 Months Ended 6 Months Ended June
30 June 30 � 2007 � � 2006 � 2007 � � 2006 � Revenues: Oil and Gas
Lease bonuses and delayed rentals $ 20,250 $ 11,354 $ 20,250 $
11,354 Royalties (net of production taxes) � 1,221,249 � �
2,029,005 � 2,515,289 � � 5,265,081 � Total Oil and Gas � 1,241,499
� � 2,040,359 � 2,535,539 � � 5,276,435 � Other: Partnership Income
(Loss) (182,500 ) - (429,831 ) - Dividends and interest 142,104
203,612 248,923 451,187 Gain on sale of securities 29,855 - 312,312
- Surface Rentals � 2,950 � � - � 2,950 � � - � Total Other
revenues � (7,591 ) � 203,612 � 134,354 � � 451,187 � Total Revenue
� 1,233,908 � � 2,243,971 � 2,669,893 � � 5,727,622 � Expenses �
Total Expenses � 256,664 � � 487,971 � 476,012 � � 728,024 � Net
Income before provision for income taxes � 977,244 � � 1,756,000 �
2,193,881 � � 4,999,598 � Income taxes Provision for income taxes �
280,781 � � 238,086 � 643,646 � � 1,242,799 � Net Income 696,463
1,517,914 1,550,235 3,756,799 � Retained Earnings-beginning of
period � 15,434,321 � � 16,779,892 � 14,580,549 � � 20,049,863
16,130,784 18,297,806 16,130,784 23,806,662 Dividends � - � � - � -
� � 5,508,856 Retained earnings-end of period $ 16,130,784 � $
18,297,806 $ 16,130,784 � $ 18,297,806 Net Income Per Share $ 0.25
� $ 0.55 $ 0.56 � $ 1.36
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