Biloxi Marsh Lands Corporation (PINK SHEETS: BLMC) today announces
its unaudited results for the second quarter and first six months
of 2008 and provides update. Total revenue for the second quarter
of 2008 was $1,261,005 compared to total revenue of $1,233,908 for
the same period of 2007. For the first six months of 2008 revenue
was $3,063,399 compared to $2,669,893 for the same period of 2007.
For the second quarter total revenue includes $85,522 of revenue
emanating from partnership income which represents the Company�s
interest in B & L Exploration, LLC compared to a net loss of
$182,500 in the same category for the second quarter of the prior
year. Meanwhile, for the first six months of 2008 partnership
income was $756,214 compared to a net loss of $429,831 in the same
category for the first six months of 2007. During the second
quarter of 2008, oil and gas revenues were $734,458 compared to
$1,241,499 for the same period of 2007. It should be noted that
BLMC did not received any revenue from production of natural gas
during May of 2008 due to the fact that the sales point, El Paso�s
Tennessee Gas Pipeline, was shut in during the month of May for
repairs. For the second quarter of 2008, gains on the sale of
investments were $373,168 compared to $29,855 during the second
quarter of 2007. Meanwhile, operating expenses for the second
quarter of 2008 were $342,050 compared to operating expenses of
$232,247 for the same period of 2007. The increase in expenses year
over year was mainly due to increase in legal fees and expenses
related to increased activity in the title dispute litigation. Net
earnings were $643,548 or $.23 per share for the second quarter of
2008 compared to $720,880 or $.26 per share for the same period of
2007, and for the first half of 2008 net earnings were $1,675,050
or $.61 per share compared to $1,545,168 or $.56 per share for the
same period of 2007. Management has taken steps to jump start
drilling activity through the formation of B & L Exploration,
LLC (BLX) of which the Company owns 75%. As previously announced
BLX placed two new wells on production during the fourth quarter of
2007. During the first six months of 2008 revenues from the
production emanating from these two wells net of ongoing expenses
attributed directly to the $756,214 in partnership income cited in
the foregoing paragraph. While these two wells, SL 18955 #1 and
18957 #1, represent relative small reservoirs, due to the excellent
sand quality these two wells continued to produce at a combined
daily rate of approximately 2.0 mmcf as of June 30, 2008. Also, as
of June 30, 2008 the combined gross daily production rate from 11
wells operated by the Company�s mineral Lessees was approximately
11.5 million cubic feet (mmcf) with net daily production accruing
to the Company of approximately 1.2 mmcf. We are pleased to
announce that on July 15, 2008 BLX and its partners successfully
logged the Lake Eugenie Land & Development #1 Well or our South
Boudreau Bay Prospect. Electric logs indicated approximately 72
gross feet or 60 net feet of natural gas pay sands. Due to
excellent sand quality, indicated by electric logs and sidewall
core analysis, we do not plan to flow test this well. We prefer to
flow it straight to production after its completion and the
completion of the flowlines needed to produce this well. We
reported on April 30th that after the completion of a six mile long
plus flowline we anticipated placing the SL 19064 #1 well on
production in June of 2008. Unfortunately, our operating partner,
Gulf Production Company is experiencing delays in completing this
flowline. This same flowline will be used to produce the Lake
Eugenie Land & Development #1 Well and we are advised by Gulf
Production that it will take an additional 6 to 8 weeks from the
date of this release to complete the flowline. Meanwhile, due to
delays in obtaining a Coastal Use Permit from the State of
Louisiana for drilling our East Three Mile Bay Prospect and the
fact that we are approaching the heart of hurricane season, we are
not going to move the rig that is presently completing the Lake
Eugenie Land & Development #1 Well to drill the East Three Mile
Bay Prospect. Depending on permitting and rig availability, our
current plan is to drill this prospect in the late fall of 2008
after the heart of hurricane season or in the late spring of 2009
before the start of hurricane season. It should be noted that since
its inception BLX has participated in the drilling of six prospects
that it generated completing four as successful commercial natural
gas wells. On January 31, 2008 we announced our participation in
the NAPE Expo in Houston, Texas (please see www.napeonline.com).
With the assistance of BLX�s technical consultants we presented
acreage under the control of BLX showing two Tuscaloosa prospects
(Alpha and Beta) developed over the past 12 to 18 months using
existing geological well control and 3D seismic data (see the
Company�s website www.biloximarshlandscorp.com for additional
information). While we continue to develop a strategy to test the
Tuscaloosa sand interval, these deeper Tuscaloosa prospects are
much more difficult to place than the shallower drilling packages
previously placed by BLX. We are continuing our efforts to place
Alpha and Beta prospects as well as additional shallower prospects,
while we are working on new strategies for marketing our property.
William B. Rudolf, President and CEO, commented: �We are pleased
with the fact that since the inception of BLX we have participated
in drilling six prospects that we have generated while completing
four as successful natural gas wells and we look forward to getting
SL 19064 #1 well and the Lake Eugenie Land & Development Well
on production as soon as possible.� 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
including President�s Report to Shareholders, and general
information about the company. During January 2008 we moved our
office to One Galleria Blvd., Suite #902. Complete and updated
contact information is available on the Company�s website:
www.biloximarshlandscorp.com. 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 as well as
its proportional share of revenue generated by BLX. 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� 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, 2008 and Comparable Period � � � � Assets 2008 2007
� � Current assets: Cash and cash equivalents $ 8,034,281 $
1,948,053 Accounts receivable 497,283 513,010 Prepaid expenses
46,508 53,519 Accrued interest receivable 30,283 66,825 Prepaid
federal income taxes 172,850 � Prepaid state income taxes 47,725
94,725 Other current assets 4,077 � Total current assets 8,833,007
2,676,132 Investments: Other investments 2,307,850 1,346,164
Marketable debt and equity securities - at cost 4,918,537
12,923,065 Land - at cost 234,939 234,939 7,461,326 14,504,168 � �
Total assets $ 16,294,333 $ 17,180,300 Liabilities and
Stockholders' Equity Current liabilities: Federal income taxes
payable $ � $ 3,196 Deferred tax liability 306,357 924,000 Other
current liabilities 115,339 93,719 Payroll taxes payable � 2,377
Total current liabilities 421,696 1,023,292 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 15,899,932 16,184,303 15,947,452 16,231,823 Less
cost of treasury stock - 96,768 shares (74,815) (74,815) 15,872,637
16,157,008 Total liabilities and stockholders' equity $ 16,294,333
$ 17,180,300 BILOXI MARSH LANDS CORPORATION Statements of Revenues
and Expenses and Retained Earnings June 30, 2008 and Comparable
Period � � � � � 3 Months Ended 6 Months Ended June 30 June 30 2008
2007 2008 2007 � Revenues: Oil and Gas Pipeline Right of Ways $
25,031 $ - $ 25,031 $ - Lease bonuses and delayed rentals - 20,250
- 20,250 Royalties (net of production taxes) � 709,427 � 1,221,249
� � 1,603,658 � 2,515,289 � � Total Oil and Gas � 734,458 �
1,241,499 � � 1,628,689 � 2,535,539 � � Other: Partnership Income
(Loss) 85,522 (182,500 ) 756,214 (429,831 ) Dividends and interest
67,857 142,104 164,755 248,923 Gain on sale of securities 373,168
29,855 513,741 312,312 Surface Rentals � - � 2,950 � � - � 2,950 �
� Total Other revenues � 526,547 � (7,591 ) � 1,434,710 � 134,354 �
� Total Revenue � 1,261,005 � 1,233,908 � � 3,063,399 � 2,669,893 �
� Expenses � Total Expenses � 342,050 � 232,247 � � 665,457 �
481,079 � � Net Income before provision for income taxes � 918,955
� 1,001,661 � � 2,397,942 � 2,188,814 � � Income taxes Provision
for income taxes � 275,407 � 280,781 � � 722,892 � 643,646 � � Net
Income 643,548 720,880 1,675,050 1,545,168 � Retained
Earnings-beginning of period � 15,256,384 � 15,463,423 � �
14,224,882 � 14,639,135 � 15,899,932 16,184,303 15,899,932
16,184,303 Dividends � - � - � � - � - � Retained earnings-end of
period $ 15,899,932 $ 16,184,303 � $ 15,899,932 $ 16,184,303 � Net
Income Per Share $ 0.23 $ 0.26 � $ 0.61 $ 0.56 �
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