Biloxi Marsh Lands Corporation (PINK SHEETS:BLMC) today
announces its unaudited results for the first quarter of 2009 and
provides update. Total revenue for the three months ending March
31, 2009 were $995,122 compared to $1,802,394 for the first quarter
of 2008. For the first quarter total revenue includes $409,571 in
revenue emanating from partnership income which represents the
Company�s interest in B&L Exploration, LLC compared to $670,692
in the same category for the first quarter of the prior year.
During the first quarter of 2009 we incurred a cumulative gain from
the sale of investment securities in the amount of $136,056 as
compared to a cumulative gain from the sale of investment
securities of $140,573 for the same period in 2008. Meanwhile for
the quarter, total expenses were $309,582 compared to $323,407 for
the prior year. For the first quarter of 2009 net earnings
decreased to $494,280 or $.18 per share from $1,031,502 or $.37 per
share for the same period of 2008.
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 2008. As of March
31, 2009 these two wells (SL 19064 #1 and Lake Eugenie Land &
Development #1) were producing at a combined daily rate of
approximately 7.3 mmcfg. On March 11, 2009, due to the decline in
the price of natural gas BLX and its partners decided to reduce the
size of the choke in the Lake Eugenie Land & Development #1
well, therefore reducing its flow rate. Also, as of March 31, 2009
the combined gross daily production rate from 5 wells operated by
the Company�s mineral Lessees was approximately 9.0 million cubic
feet (mmcf) with net daily production accruing to the Company of
approximately 900 mcf. Combining this daily natural gas production
with the Company�s proportional share of the daily production from
the BLX wells makes the total net daily production accruing to the
Company as of March 31, 2009 approximately 2.3 mmcf of natural
gas.
Due to delays in obtaining a Coastal Use Permit from the state
of Louisiana, BLX and its partners did not drill SL 19061 #1
sequentially after drilling the Lake Eugenie Land & Development
#1 well as planned. We have finally obtained our Coastal Use
Permit, but due to the decline in the price of natural gas BLX and
its partners have decided to delay the drilling of SL 19061 #1
until the spring of 2010. Meanwhile, we are actively working on
identifying prospects with larger reserve potential that represent
more attractive investment opportunities in the current commodity
price environment.
Since 2001 litigation has been pending in the Louisiana State
Court in St. Bernard Parish. This litigation emanates from a title
dispute over a certain tract of land owned by the Company that has
been and is currently having natural gas produced from beneath its
surface. Including the Company, there are three adverse claimants
to this tract of land. Please refer to the following link and read
the President�s Report to Shareholders dated March 18, 2009 for
supplemental information on the litigation:
www.biloximarshlandscorp.com . Since early on in the litigation we
have attempted to conduct settlement discussions with the adverse
claimants. Unfortunately, past settlement discussions between the
adverse parties have yielded little movement. Recently discussions
between the interested parties appear to be progressing. If such
negotiations are successful in reaching a binding settlement
agreement between all parties, an appropriate Press Release will be
issued by the Company at the time a settlement becomes effective
and binding upon all of the interested parties. It should be noted
that the negotiations do not involve the disputes with the State of
Louisiana regarding its claims to certain waterbottoms owned by the
Company. Again, please refer to the March 18, 2009 President�s
Report Shareholders for additional information, a copy of which is
available on the Company�s website: www.biloximarshlandscorp.com
.
William B. Rudolf, President and CEO, commented: �We are pleased
with the continued success of BLX. Since inception, we have drilled
four out of six successful wells. We are in the process of
modifying our investment strategy to take into consideration the
recent decline in commodity prices. We intend to move the Company
forward in a prudent manner that takes into consideration the
current economic environment, which we believe may create
unprecedented opportunity.�
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.
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 March 31, 2009 and 2008 � � �
� � � � �
Assets 2009 2008 � � Current assets:
Cash and cash equivalents $ 5,199,316 8,893,918 Accounts receivable
162,889 337,890 Federal income taxes receivable 148,496 State
income taxes receivable 36,308 � Prepaid expenses 18,835 18,425
Accrued interest receivable 59,703 14,033 Other 7,985 � � � Total
current assets 5,633,532 � 9,264,266 � � Investment in Partnership
1,348,192 2,222,328 Marketable debt and equity securities - at cost
5,773,464 4,637,809 Land - at cost 234,939 234,939 Levees and
office furniture and equipment 188,352 187,972 Accumulated
Depreciation (188,352 ) (187,972 ) 7,356,595 � 7,095,076 � � �
Total assets $ 12,990,127 � 16,359,342 �
Liabilities and
Stockholders' Equity Current liabilities: Federal income taxes
payable $ � 516,842 State income taxes payable � 51,498 Deferred
tax liability � 459,536 Accrued expenses 81,602 100,217 Other 2,520
� 2,160 � Total current liabilities 84,122 � 1,130,253 �
Stockholders' equity:
Common stock, par value $.001 -
20,000,000 shares authorized, 2,851,196 shares issued, outstanding
2,741,428 shares in 2009 and 2,754,428 in 2008
47,520 47,520 Retained earnings 13,041,550 15,256,384
Less cost of treasury stock -
109,768 and 96,768 shares in 2009 and 2008, respectively
(183,065 ) (74,815 ) Total liabilities and stockholders' equity $
12,990,127 � 16,359,342 �
BILOXI MARSH LANDS CORPORATION
Statements of Revenues and Expenses and Retained Earnings March 31,
2009 and 2008 � � � �
2009 2008 �
Revenues:
Oil and Gas Royalties (net of production taxes) $ 384,285 �
894,231 � Total oil and gas revenues � 384,285 � 894,231 �
Other: Partnership income (Loss) 409,571 670,692 Dividends
and interest 65,210 96,898 Gain on sale of securities � 136,056 �
140,573 � Total other revenues � 610,837 � 908,163 � Total revenues
� 995,122 � 1,802,394 �
Expenses � Total expenses � 309,582
� 323,407 � Net income before provision for income taxes � 685,540
� 1,478,987 �
Income taxes Provision for income taxes �
191,260 � 447,485 � Net income 494,280 1,031,502 � � Net income per
share $ 0.18 $ 0.37
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