Biloxi Marsh Lands Corporation (PINK SHEETS: BLMC) today
announces its unaudited results for the third quarter and first
nine months of 2010 and provides update. Total revenue for the
third quarter of 2010 was $675,999 compared to total revenue of
$23,459,199 for the same period of 2009. For the first nine months
of 2010 revenue was $1,535,714 compared to $24,717,858 for the same
period of 2009. (2009 - Q3 and first nine months revenues included
$23,827,543 in nonrecurring revenue funds received from the
settlement effective July 1, 2009 of the litigation that was
pending to determine the ownership of Sections 1, 2 and 3, Township
13 South, Range 16 East.) For the third quarter total revenue
includes a $53,056 gain emanating from partnership income which
represents the Company’s interest in B&L Exploration, LLC
compared to a net loss of $725,947 in the same category for the
third quarter of the prior year. Other revenue included $85,329 in
dividends & interest, and a $68,311 gain from sale of
securities. During the third quarter of 2010, oil and gas revenues
were $439,453 compared to $21,117,644 for the same period of 2009
and for the first nine months oil and gas revenues were $1,085,389
compared to $21,740,302 for the first nine months of 2009.
Meanwhile, operating expenses for the third quarter of 2010 were
$225,694 compared to $292,572 for the same period of 2009. Net
earnings were $315,214 or $0.11 per share for the third quarter of
2010 compared to $15,168,494 or $5.53 per share for the same period
of 2009, and for the first nine months of 2010 net earnings were
$551,790 $0.20 per share compared to $15,586,289 or $5.68 per share
for the same period of 2009. Please note the non-recurring revenue
for 2009 as stated above.
As previously announced, preliminary approval for settlement of
all cases involving disputed waterbottoms between the Company and
the State of Louisiana was granted by the Mineral and Energy Board
of the State of Louisiana during its meeting held on July 14, 2010.
The settlement involves sharing the funds with the State of
Louisiana deposited in the various concursus accounts on a
proportional basis which has been negotiated between
representatives of the State and the Company. Subsequently, during
its October 13th meeting, the Mineral and Energy Board approved the
settlement agreements which were then executed by all the parties.
We are awaiting disbursement of funds by the St. Bernard Parish
Clerk of Courts. BLMC will receive slightly more than $5.5 million
from this settlement with additional funds to be disbursed to the
Biloxi Marsh Lands 1 Royalty, LLC, 50196, LLC and Lake Eugenie Land
& Development, Inc. We anticipate that the disbursements will
take place prior to the end of 2010. For more information on the
disputes between the Company and the State of Louisiana, please
refer to our website: www.biloximarshlandscorp.com.
As of September 30, 2010 the combined gross daily production
rate from six wells operated by the Company’s mineral Lessees was
approximately 12.3 million cubic feet (mmcf) with net daily
production accruing to the Company of approximately 1.78 mmcf.
Combining this daily natural gas production with the Company’s
proportional share of the daily production from the B&L wells
makes the total net daily production accruing to the Company as of
September 30, 2010 approximately 4.3 mmcfe (natural gas and
equivalents).
As of September 30, 2010 B&L’s net interest of wells were
producing at a combined daily rate of approximately 3.03 mmcfe.
During the last quarter the Lake Eugenie Land & Development,
Inc. No. 1 well was placed on compression to increase and stabilize
its flow rate. In addition to the current producing wells, B&L
is participating in the drilling of additional wells in Louisiana
during the fourth quarter of 2010.
B&L was organized as a limited liability Company (LLC) under
the laws of Louisiana in July of 2006. B&L’s Class A members
are BLMC and Lake Eugenie Land & Development, Inc. (LKEU),
which have membership percentages of 75% and 25% respectively. The
Operating Agreement was amended on November 16, 2009 to create a
Class B membership to allow for certain future projects at the
discretion of the board of managers to be participated by either
Class A or Class B members or a combination of the respective
Classes. B&L’s Class B members are BLMC and LKEU, which have
membership percentages of 90% and 10% respectfully.
In regards to the Deep Water Horizon drilling rig explosion
and resulting BP oil spill.
We are thankful that the spill has been stopped and the
company’s property is no longer threatened by a continued oil leak.
As of the date of this release, it appears very little if any of
BLMC’s property was contaminated with oil from the spill.
William B. Rudolf, President and CEO, commented: “With the
litigation with the State of Louisiana nearly behind us, we are
prepared to focus our efforts on strategies designed to hopefully
increase the Company’s asset base and hopefully lead to increased
production from our fee based land and off-property assets.”
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 revenues from oil and gas exploration and
production activities that take place on or near the company’s
land. The company also derives revenues from its majority ownership
interest in B&L Exploration, LLC and 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 September 30, 2010 and 2009
Assets 2010 2009 Current assets: Cash
and cash equivalents $ 6,433,485 21,907,037 Accounts receivable
206,109 80,989 Federal income taxes receivable 8,437 — State income
taxes receivable 65,843 — Prepaid expenses 59,063 55,327 Accrued
interest receivable 55,995 72,385 Other assets 3,830 3,830
Total current assets 6,832,762 22,119,568
Investment in partnership 2,902,539 580,188 Marketable debt
and equity securities - at cost 8,506,359 7,305,824 Land - at cost
234,939 234,939 Levees and office furniture and equipment 257,496
188,352 Accumulated depreciation (257,496 ) (188,352 ) 11,643,837
8,120,951 Total assets $ 18,476,599 30,240,519
Liabilities and Stockholders' Equity Current
liabilities: Federal Income Tax Payable 6,947,629 State income tax
payable 734,757 Accrued expenses 10,781 40,455 Other current
liabilities 3,960 2,520 Total current liabilities
14,741 7,725,361 Stockholders' equity:
Common stock, par value $.001 - 20,000,000
shares authorized, 2,851,196 shares issued, outstanding 2,741,428
shares in 2010 and 2,741,428 in 2009
47,520 47,520 Retained earnings 18,597,403 22,650,703
Less cost of treasury stock - 109,768 and
109,768 shares in 2010 and 2009, respectively
(183,065 ) (183,065 ) Total liabilities and stockholders' equity $
18,476,599 30,240,519
BILOXI MARSH LANDS CORPORATION Statements of
Revenues and Expenses and Retained Earnings September 30, 2010 and
Comparable Period
3 Months Ended
9 Months Ended September 30 September 30
2010 2009 2010 2009
Revenues:
Oil and gas
Royalties $ 452,906 $ 21,137,561 $ 1,109,537 $ 21,806,837 Severance
taxes (13,453 ) (19,917 ) (54,148 )
(66,535 ) Oil and gas royalties, net 439,453 21,117,644 1,055,389
21,740,302 Delay rentals - -
30,000 - Total oil and gas revenues
439,453 21,117,644 1,085,389
21,740,302
Other: Gain (loss)
from investment in partnership 53,056 (725,947 ) 79,621 (358,433 )
Dividends and interest 85,329 3,054,952 247,298 3,200,978 Gain
(loss) on sale of securities 68,311 - 85,924 122,461 Surface
rentals and other 29,850 12,550
37,482 12,550 Total other income
236,546 2,341,555 450,325
2,977,556 Total revenues and income 675,999
23,459,199 1,535,714
24,717,858
Expenses Total expenses
225,694 292,572 747,444
1,066,612 Net income before provision for
income taxes 450,305 23,166,627
788,270 23,651,246
Income taxes
Provision for income taxes 135,091 7,998,133
236,480 8,064,957 Net
income $ 315,214 $ 15,168,494 $ 551,790 $ 15,586,289
Net income per share $ 0.11 $ 5.53 $
0.20 $ 5.68
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