Biloxi Marsh Lands Corporation (PINK SHEETS:BLMC) today
announces its unaudited results for the first quarter of 2013 and
provides update. The Company’s revenue for the three months ending
March 31, 2013 from oil and gas production for its fee lands was
$150,548 compared to revenue of $125,278 in 2012.
During the first quarter of 2013, total revenues included a
$92,980 loss emanating from the Company’s investment in B&L
Exploration, LLC (B&L). This compares to a loss of $572,333
from B&L for the first quarter of 2012. As an operating oil and
gas entity, B&L’s results included deductions for depreciation,
depletion and amortization (DD&A) costs relating to its ongoing
drilling and production activities. BLMC’s share of these DD&A
expenses was $229,948 and $179,124 for the first quarter of 2013
and 2012, respectively.
Meanwhile, dividend and interest income for the first three
months of 2013 was $43,503, compared to $41,142 for the first three
months of 2012. During the first quarter of 2013, the Company
realized a cumulative gain from the sale of investment securities
of $737,980 compared to a cumulative gain in the amount of $13,711
for the same period in 2012. Meanwhile, for the quarter, total
expenses were $244,456 compared to $253,653 for the prior year. For
the first quarter of 2013, the Company had net income of $438,544
or $.16 per share compared to a net loss of $350,742 or $.13 per
share in 2012.
As of March 31, 2013, the combined gross daily production rate
from 4 wells operated by the Company’s mineral lessees was
approximately 3.7 million cubic feet (mmcf) of natural gas with net
daily production accruing to the Company of approximately .465
mmcf. As of March 31, 2013, B&L’s net production breakdown was
approximately 1.0 mmcfg and 43 barrels of oil per day from 6
wells.
As of March 31, 2013, McMoRan Exploration Co. (NYSE:MMR)
continued to drill its Lomond North Well and had reached a depth of
approximately 18,400 feet measured depth. As previously reported,
B&L has been assigned and is contractually entitled to a 1.5%
of 8/8ths overriding royalty interest in the Lomond North prospect
exploratory well and in all mineral leases obtained by MMR in this
approximately 80,000 gross acre Highlander area located in Iberia,
St. Martin, Assumption and Iberville Parishes, Louisiana.
As previously reported, during the June 20, 2012 Central Gulf of
Mexico Lease Sale, B&L was the high bidder and successfully
obtained the mineral rights to Eugene Island Block 74. Based on
B&L’s recently commissioned independent reservoir engineer’s
study, this lease block is projected to contain significant natural
gas and oil Proved Undeveloped (PUD) reserves with significant
additional upside potential in undrilled fault blocks. B&L
currently holds a 60% working interest in Eugene Island Block 74,
and it will be necessary to drill wells to access the PUD reserves
and additional upside potential. B&L is seeking partners to
develop this offshore lease block and hopes to commence drilling
operations during 2014.
As previously reported, B&L is actively assembling
additional prospective acreage on which to explore, exploit and
develop the acreage’s mineral interest. The goal is to place a
portion of the working interests with third party industry partners
in an effort to mitigate risk. Due to this strategic shift, B&L
has not participated in the drilling of any new wells during
2013.
B&L’s acquisition of approximately 50 square miles or
approximately 30,000 acres of mineral and surface rights in Calhoun
and Victoria County, Texas is identified as B&L’s Lago Verde 3D
Seismic Project. As previously reported, B&L successfully
placed a significant working interest in its Lago Verde project
with the Bass Group with main offices in Fort Worth, Texas.
B&L, as operator, completed acquiring field data during the
first quarter of 2013 and is now awaiting completion of 3D data
processing. While there is no guarantee that the 3D seismic data
will reveal any prospects to drill, B&L’s management is hopeful
that drilling should commence during the fourth quarter of 2013.
BOPCO, the operating company for the Bass Group, will operate any
wells that may be drilled within this Lago Verde project area.
B&L retained a 33.5% working interest in the Lago Verde
project.
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 December
2012, the members approved the consolidation of all the membership
classes into a single class of membership, consistent with the
Class A membership. All appropriate actions were taken according to
the terms of the operating agreement with respect to the
consolidation. Effective January 1, 2013, BLMC and LKEU have
membership percentages of 75% and 25%, respectively.
During its meeting held on Thursday, April 25, 2013, the Board
of Directors voted to extend and increase the stock buyback program
by authorizing the purchase of an additional 27,000 shares of its
outstanding common stock. Combining this additional authorization
with the 2,100 shares remaining under the prior buyback program,
the Company has authorization to purchase a total of 29,100 shares
of common stock under the program. The purchases will be made from
time to time on the open market at the sole discretion of the
Company. All shares purchased will be held as Treasury stock.
William B. Rudolf, President and CEO, commented: “We are
encouraged by the recent increase in natural gas prices and are
hopeful that the current pricing regime will hold through the
summer months. Our partially owned subsidiary, B&L, has an
interest in MMR’s Lomond North well with a projected total depth of
over 30,000’ TVD which is the only well that is currently being
drilled in which B&L has an interest. If successful this could
be a significant asset for B&L and the Company. Meanwhile, we
are excited about B&L’s projects and hopeful that B&L’s
drilling program will pick up during the second half of 2013 and
into 2014. We continue to actively work on developing both shallow
and deep prospects on the Company’s property, particularly our deep
Tuscaloosa Project.”
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.
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, 2013 and 2012
Assets
2013 2012
Current assets: Cash and cash equivalents $ 2,167,515
2,721,105 Accounts receivable 75,298 94,293 Prepaid expenses 23,773
24,340 Accrued interest receivable 21,770 28,683 Deferred tax asset
426,345 1,040,704 Federal income taxes receivable — 16,136 State
income taxes receivable — 2,157 Other assets 3,830
3,830 Total current assets
2,718,531 3,931,248
Other assets: Investment in partnership 2,478,274 763,525
Marketable debt and equity securities - at cost 9,992,297
10,932,231 Land 234,939 234,939 Levees and office furniture and
equipment 307,323 299,574 Accumulated depreciation
(303,454 ) (299,574 ) Total other assets
12,709,379 11,930,695
Total assets $ 15,427,910
15,861,943
Liabilities and Stockholders’
Equity
Current liabilities: Income taxes payable $ 141,440 — Accrued
expenses 25,187 76,685 Other current liabilities
4,608 4,410 Total current
liabilities 171,235 81,095
Stockholders’ equity:
Common stock, $.001 par value. Authorized,
20,000,000 shares; issued, 2,851,196 shares; outstanding, 2,716,028
and 2,733,028 shares in 2013 and 2012, respectively
47,520 47,520 Retained earnings 15,650,615 16,000,971
Treasury stock - 135,168 and 118,168
shares in 2013 and 2012, respectively, at cost
(441,460 ) (267,643 )
Total liabilities and stockholders’
equity
$ 15,427,910 15,861,943
BILOXI MARSH LANDS CORPORATION Statements of
Revenues and Expenses March 31, 2013 and 2012
2013 2012
Revenues: Oil and gas royalties $ 159,132 $
134,887 Severance taxes (8,584 )
(9,609 ) Oil and gas royalties, net 150,548
125,278 Other
(loss) income: Income (loss) from investment in partnership (92,980
) (572,333 ) Dividends and interest income 43,503 41,142 Gain on
sale of securities 737,980 13,711 Other 6,150
68,216 Total other (loss) income
694,653 (449,264 )
Total revenues and income 845,201
(323,986 ) Expenses: Total expenses
244,456 253,653
Net (loss) income before income taxes 600,745 (577,639 )
Income tax (benefit) expense 162,201
(226,897 ) Net (loss) income $ 438,544
(350,742 ) Net (loss)
income per share $ 0.16 $ (0.13 )
Biloxi Marsh Lands (CE) (USOTC:BLMC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Biloxi Marsh Lands (CE) (USOTC:BLMC)
Historical Stock Chart
From Jul 2023 to Jul 2024