Biloxi Marsh Lands Corporation (PINK SHEETS:BLMC) today
announces its unaudited results for the first quarter of 2012 and
provides update. Revenue for the three months ending March 31, 2012
from oil and gas production for its fee lands was $125,278 compared
to revenue of $489,534 for the first quarter of 2011. For the first
quarter total revenue included a net loss of $572,333 emanating
from the Company’s investment in B&L Exploration, LLC
(B&L). This loss compares to income of $50,756 from B&L for
the first quarter of 2011. The current quarter’s net loss from
B&L was driven primarily by the costs incurred in drilling and
completing two new wells. During the first quarter of 2012, the
Company realized a cumulative gain from the sale of investment
securities in the amount of $13,711 compared to a cumulative gain
from the sale of investment securities of $55,415 for the same
period in 2011. Meanwhile, for the quarter, total expenses were
$253,653 compared to $301,976 for the prior year. For the first
quarter of 2012, the Company incurred a net loss of $350,742 or
$0.13 per share compared to a net profit of $269,655 or $0.10 per
share for the same period of 2011.
As of March 31, 2012 the combined gross daily production rate
from 4 wells operated by the Company's mineral lessees was
approximately 4.8 million cubic feet (mmcf) of natural gas with net
daily production accruing to the Company of approximately 0.6 mmcf.
Combining the 4 wells operated by the Company's mineral lessees
with BLMC’s interest in the B&L wells, the total combined daily
production accruing to BLMC (from B&L and Lessee wells) as of
March 31, 2012 was approximately 3.02 mmcfe (natural gas
equivalents 15:1 oil to gas ratio) per day.
In March 2012, the SL 19706 No. 1 Well operated by Clayton
Williams Energy, Inc. and the CL&F No. 1 Well operated by Forza
Operating, LLC both came on production. B&L has a 15% and
9.375% non-operated working interest in the SL 19706 No. 1 Well and
the CL&F No. 1 Well, respectively. The Goodrich Land and Energy
No. 1 Well located in St. Martin Parish, Louisiana and operated by
Linder Oil Company was drilled, successfully completed and
partially flow tested in February of 2012. Linder Oil Company
advises this well should be placed on production during the second
quarter of 2012. B&L has a 15% non-operated working interest in
this well.
In March 2012, the Fleming Plantation No. 1 Well located in
Barataria Field, Jefferson Parish, Louisiana, and operated by
Alpine Exploration Co.’s Inc. was drilled. While electric logs were
inconclusive they indicated approximately 8 net feet of possible
oil pay in the 11600’ sand interval and another approximately 16
net feet of possible oil pay in the upper “E” sand interval.
Subsequently, the well has been completed. Unfortunately, the flow
test to production of the 11600’ sand interval yielded unexpected
volumes of water that may make this zone non-commercial. The
Operator is evaluating the situation and B&L is awaiting the
Operator’s recommendation on a path forward. B&L has a 16.62%
working interest in this well.
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.
William B. Rudolf, President and CEO, commented: “During 2012,
we intend to focus on the development of prospects on our property
as well as diligently executing B&L’s drilling program. With
the current wells scheduled to be drilled, we are hopeful that the
drilling program will continue to add to B&L reserves.”
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 other relevant information. At the annual
meeting of shareholders in April 2012, a presentation on the
Company and B&L was delivered. The shareholder presentation can
be viewed on the Company’s website.
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 and expenses from its
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 “Statements of Revenues and Expenses”
have been derived from interim un-audited financial statements
which do 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, 2012 and 2011
Assets 2012
2011 Current assets: Cash and cash equivalents $
2,721,105 4,470,324 Accounts receivable 94,293 198,826 Prepaid
expenses 24,340 19,709 Accrued interest receivable 28,683 40,556
Deferred tax asset 1,040,704 Federal income taxes receivable 16,136
— State income taxes receivable 2,157 — Other assets 3,830
3,830 Total current assets 3,931,248 4,733,245
Other assets: Investment in partnership 763,525 4,809,657
Marketable debt and equity securities - at cost 10,932,231
9,111,058 Land 234,939 234,939 Levees and office furniture and
equipment 299,574 277,679 Accumulated depreciation (299,574 )
(277,679 ) Total other assets 11,930,695 14,155,654
Total assets $ 15,861,943 18,888,899
Liabilities and Stockholders' Equity Current liabilities:
Income taxes payable $ — 112,854 Accrued expenses 76,685 84,887
Other current liabilities 4,410 3,960 Total current
liabilities 81,095 201,701 Stockholders' equity: Common stock,
$.001 par value. Authorized, 20,000,000 shares; issued, 2,851,196
shares; outstanding, 2,733,028 and and 2,741,428 shares in 2012 and
2011, respectively 47,520 47,520 Retained earnings 16,000,971
18,822,743
Treasury stock - 118,168 and 109,768
shares in 2012 and 2011, respectively, at cost
(267,643 ) (183,065 ) Total liabilities and stockholders' equity $
15,861,943 18,888,899
BILOXI
MARSH LANDS CORPORATION Statements of Revenues and Expenses
March 31, 2012 and 2011
2012
2011 Revenues: Oil and gas royalties $ 134,887 $
511,983 Severance taxes (9,609 ) (22,449 ) Oil and
gas royalties, net 125,278 489,534
Other (loss) income: Income (loss) from investment in
partnership (572,333 ) 50,756 Dividends and interest income 41,142
69,511 Gain on sale of securities 13,711 55,415 Other 68,216
6,150 Total other (loss) income
(449,264 ) 181,832 Total revenues and income
(323,986 ) 671,366 Expenses: Total expenses
253,653 301,976 Net (loss) income
before income taxes (577,639 ) 369,390 Income tax (benefit) expense
(226,897 ) 99,735 Net (loss) income $ (350,742
) 269,655 Net (loss) income per share $ (0.13
) $ 0.10
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