Biloxi Marsh Lands Corporation (PINK SHEETS:BLMC) today
announces its unaudited results for the first quarter of 2014 and
provides update. The Company’s revenue for the three months ending
March 31, 2014 from oil and gas production for its fee lands was
$111,436 compared to revenue of $150,548 in 2013.
During the first quarter of 2014, total revenues included a
$233,000 loss emanating from the Company’s investment in B&L
Exploration, LLC (B&L). This compares to a loss of $92,980 from
B&L for the first quarter of 2013. 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 $229,739 and $229,948 for the first quarter of 2014
and 2013, respectively.
Meanwhile, dividend and interest income for the first three
months of 2014 was $94,072, compared to $43,503 for the first three
months of 2013. During the first quarter of 2014, the Company
realized a cumulative gain from the sale of investment securities
of $681,972 compared to a cumulative gain in the amount of $737,980
for the same period in 2013. Meanwhile, for the quarter, total
expenses were $252,130 compared to $238,306 for the prior year. For
the first quarter of 2014, the Company had net income of $256,244
or $.10 per share compared to net income of $438,544 or $.16 per
share in 2013.
As of March 31, 2014, the combined gross daily production rate
from 4 wells operated by the Company’s mineral lessees was
approximately 3.1 million cubic feet (mmcf) of natural gas with net
daily production accruing to the Company of approximately .390
mmcf. Meanwhile, as of March 31, 2014, B&L’s gross production
was approximately 3.493 mmcfg and 625 barrels of oil from 6 wells
with .764 mmcfg and 66 barrels of oil per day accruing to
B&L.
As previously reported, the Company has filed a claim against
the US Army Corps of Engineers (USACE) for property damage and loss
caused by the Mississippi River Gulf Outlet (MRGO). We are
continuing to pursue this claim and will keep our shareholders
advised as things progress.
According to its April 24, 2014 press release, Freeport-McMoRan
Copper and Gold, Inc. (NYSE:FCX) stated the following concerning
its Inboard Lower Tertiary/Cretaceous activities: “The Highlander
onshore exploratory well, in which Freeport-McMoRan Oil and Gas (FM
O&G) is the operator and has a 72 percent working interest,
located in St. Martin Parish, Louisiana, encountered gas pay in
several Wilcox and Cretaceous sands between 24,000 feet and 29,000
feet. As reported in January 2014, the wireline log and core data
obtained from the Wilcox and Cretaceous sand packages indicated
favorable reservoir characteristics with approximately 150 feet of
net pay. The Highlander discovery well is currently in completion
operations to test Lower Wilcox and Cretaceous objectives found
below the salt weld. Flow testing is anticipated in the second half
of 2014. FM O&G has identified multiple exploratory prospects
in the Highlander area where it controls rights to approximately
56,000 gross acres.” As previously reported, B&L has been
assigned and is contractually entitled to a 1.5% of 8/8ths
overriding royalty interest (ORRI) in the Lomond North discovery
well and in all mineral leases obtained by FM O&G in its
Highlander project area located in Iberia, St. Martin, Assumption
and Iberville Parishes, Louisiana.
As previously reported, in addition to the Lomond North
discovery well in which B&L has an ORRI, B&L has a 16.59%
working interest in the Williams C-4 ST1 well that the operator
Linder Oil and Gas placed on production in March 2014. As of the
date of this press release, the Williams C-4 ST1 well is producing
at rates of approximately 400 barrels of oil per day with
approximately 180 mcf of natural gas per day.
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. The
current evaluation of the processed 3D seismic data indicates
multiple prospects and additional prospect leads. 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% ground floor working interest in the Lago Verde
project. As of this time, the anticipated timeline for the
commencement of drilling operations on the Lago Verde multi-well
drilling program remains the latter part of the second quarter of
2014. In the initial round of drilling, B&L and the other
working interest owners plan to drill four to five prospects.
B&L was organized as a limited liability Company (LLC) under
the laws of Louisiana in July of 2006. B&L’s members are BLMC
and Lake Eugenie Land & Development, Inc. (LKEU), which have
membership percentages of 75% and 25%, respectively.
William B. Rudolf, President and CEO, commented: “The
combination of the Company’s 90,000 acre fee land and mineral
position in St. Bernard Parish, Louisiana, B&L’s approximately
30,000 acre Lago Verde mineral acreage position in south Texas,
5,000 acre Eugene Island Block 74 in offshore Louisiana waters,
plus the over 56,000 acre Highlander project area in south central
Louisiana in which B&L is contractually entitled to a 1.5%
overriding royalty interest gives the Company and its shareholders
exposure to opportunities which we have not seen in the past. We
are hopeful that this diversity of mineral interest created by the
Company’s investment in B&L will ultimately lead to significant
increase in shareholder value.”
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,” “could,” “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, 2014 and 2013
Assets 2014 2013
Current assets: Cash and cash equivalents $ 2,474,024
2,167,515 Accounts receivable 61,429 75,298 Prepaid expenses 24,687
23,773 Accrued interest receivable 23,706 21,770 Deferred tax asset
21,265 426,345 Other assets 3,830
3,830 Total current assets
2,608,941 2,718,531 Other
assets: Investment in partnership 3,898,061 2,478,274 Marketable
debt and equity securities - at cost 9,020,486 9,992,297 Land
234,939 234,939 Levees and office furniture and equipment 314,943
307,323 Accumulated depreciation (312,764 )
(303,454 ) Total other assets
13,155,665 12,709,379 Total
assets $ 15,764,606 15,427,910
Liabilities and Stockholders’
Equity
Current liabilities: Income taxes payable $ 292,064 141,440 Accrued
expenses 37,260 25,187 Other current liabilities
4,608 4,608 Total current
liabilities 333,932 171,235
Stockholders’ equity:
Common stock, $.001 par value. Authorized,
20,000,000 shares; issued, 2,851,196 shares; outstanding, 2,679,028
and 2,716,028 shares in 2014 and 2013, respectively
47,520 47,520 Retained earnings 16,425,779 15,650,615
Treasury stock - 172,168 and 135,168
shares in 2014 and 2013, respectively, at cost
(1,042,625 ) (441,460 )
Total liabilities and stockholders’
equity
$ 15,764,606 15,427,910
BILOXI MARSH LANDS CORPORATION Statements of
Revenues and Expenses March 31, 2014 and 2013
2014
2013 Revenues: Oil and gas royalties $ 116,167
$ 159,132 Severance taxes (4,731 )
(8,584 ) Oil and gas royalties, net
111,436 150,548
Other income: Loss from investment in partnership (233,000 )
(92,980 ) Dividends and interest income 94,072 43,503 Gain on sale
of securities 681,972
737,980 Total other income 543,044
688,503 Total revenues
and income 654,480
839,051 Expenses: Total expenses
252,130 238,306 Net
income before income taxes 402,350 600,745 Income tax expense
146,106 162,201
Net income $ 256,244
438,544 Net income per share $ 0.10 $ 0.16
Biloxi Marsh Lands CorporationColleen Starks, 504-837-4337
Biloxi Marsh Lands (CE) (USOTC:BLMC)
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