Biloxi Marsh Lands Corporation (PINK SHEETS: BLMC) today
announces its unaudited results for the second quarter of 2014 and
first six months of 2014 and provides update. The Company’s revenue
for the three months ending June 30, 2014 from oil and gas
production for its fee lands was $112,792 compared to revenue of
$169,361 for the second quarter of 2013. For the first six months
of 2014, revenue generated from the Company’s fee lands decreased
to $224,228 from $319,909 for the same period in 2013.
During the second quarter of 2014, total revenues included an
$87,013 loss emanating from the Company’s investment in B&L
Exploration, LLC (B&L). This compares to a loss of $132,655
from B&L for the second quarter of 2013. Correspondingly, total
revenue for the six months ended June 30, 2014 includes a net loss
of $320,013 generated by B&L compared to a net loss of $225,635
from B&L for the first six months 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 $454,980 and $453,868 for the first six
months of 2014 and 2013, respectively.
Meanwhile, dividend and interest income for the first six months
of 2014 was $125,506, compared to $90,920 for the first six months
of 2013. During the second quarter of 2014, the Company realized a
cumulative gain from the sale of investment securities of $431,673
compared to a cumulative gain in the amount of $758,911 for the
same period in 2013. For the first six months of 2014, the
cumulative gain from the sale of investment securities was
$1,113,645 compared to $1,496,891 for the first six months of 2013.
Meanwhile, total expenses were $204,449 compared to $211,756 for
the same period of the prior year. Total expenses for the first six
months of 2014 and 2013 were $456,579 and $450,062, respectively.
The Company had net income of $180,230 or $.07 per share for the
second quarter of 2014 compared to net income of $604,361 or $.22
per share in 2013. Meanwhile, for the first half of 2014, net
income was $436,474 or $.16 per share compared to net income of
$1,042,905 or $.38 per share for the same period of 2013.
As of June 30, 2014, the 4 wells operated by the Company’s
mineral lessees were currently off production due to pipeline work
and re-work of the wells. The wells have been returned to
production. As of August 1, 2014, the combined daily gross
production was approximately 3.7 million cubic feet of natural gas
(mmcfg), with approximately .345 mmcfg accruing to the Company.
Meanwhile, as of June 30, 2014, B&L’s gross production was
approximately 3.593 mmcfg and 670 barrels of oil from 5 wells with
.808 mmcfg and 71 barrels of oil per day (BOPD) accruing to
B&L.
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 Freeport-McMoRan Oil and Gas (FM O&G)
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.
The Williams C-4 ST1 well which was placed on production in
March 2014 continues to produce as expected. B&L has a 16.59%
working interest in this well. The Williams C-4 ST1 well is
producing at rates slightly above the targeted 400 BOPD with
approximately .350 mmcfg per day and no water production.
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 the date of this release, the drilling operations
have commenced with the first prospect of the Lago Verde multi-well
drilling program.
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.
During the second quarter of 2014, the Company reported that it
completed its previously announced stock buyback program with the
acquisition of a total of 67,500 shares of its common stock since
the inception of the buyback plan in September of 2008. During the
course of completing the buyback program, the opportunity to
purchase additional shares of common stock presented itself. The
Company successfully negotiated the purchase of an additional
151,900 shares in two separate private transactions. Since
September of 2008, the total number of shares purchased by the
Company as treasury stock is 219,400. The Company paid an average
price of $12.62 for these shares of common stock since the
inception of the buyback program. As of the time of this press
release, the Company is not actively seeking to repurchase any
additional shares of its common stock. The Company currently has
2,535,028 common shares outstanding.
William B. Rudolf, President and CEO, commented: “Through our
investment in B&L Exploration, LLC, management continues to
aggressively seek diversified opportunities for the Company’s
shareholders. While B&L’s management continues to be cautiously
optimistic that the Lomond North well in FM O&G’s Highlander
area will undergo a commercially successful flow test, it is aware
of FM O&G’s recent disclosure that its Davy Jones No. 1 well is
scheduled to be plugged and abandoned and the initial flow test on
its Davy Jones No. 2 well was not a commercial success. B&L is
hopeful that different temperature and pressure regimes combined
with the apparent presence of hydrocarbons in different aged sand
intervals in the Lomond North Well will increase the probability of
a commercially successful flow test followed by commercial
production. While B&L’s management views the commercial
development of the Highlander Area as a significant opportunity in
which it has no risk capital, management views the Lomond North
Well as a component of a diversified exploration, exploitation and
drilling program. B&L has invested in other projects that also
could be financially significant. Additionally, the Company has
approximately 90,000 acres of fees lands on which we are
continually taking steps to further define, delineate and promote
its mineral potential. As history demonstrates, management will
continue to seek opportunities to create value for our
shareholders.”
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
June 30, 2014 and 2013
Assets
2014 2013 Current assets: Cash and cash
equivalents $ 1,777,082 3,634,083 Accounts receivable 36,223
214,463 Prepaid expenses 64,332 60,501 Accrued interest receivable
19,611 16,900 Deferred tax asset 21,265 468,821 Other assets
3,830 3,830 Total current assets 1,922,343
4,398,598 Other assets: Investment in partnership
3,811,048 2,345,619 Marketable debt and equity securities - at cost
8,067,225 9,051,651 Land 234,939 234,939 Levees and office
furniture and equipment 314,943 307,323 Accumulated depreciation
(312,989 ) (304,186 ) Total other assets 12,115,166
11,635,346 Total assets $ 14,037,509
16,033,944
Liabilities and Stockholders’
Equity
Current liabilities: Income taxes payable $ 219,556 151,834 Accrued
expenses 2,441 16,466 Other current liabilities 4,608
4,608 Total current liabilities 226,605 172,908
Stockholders’ equity:
Common stock, $.001 par value. Authorized,
20,000,000 shares; issued, 2,851,196 shares; outstanding, 2,535,028
and 2,716,028 shares in 2014 and 2013, respectively
47,520 47,520 Retained earnings 16,606,009 16,254,976
Treasury stock - 316,168 and 135,168
shares in 2014 and 2013, respectively, at cost
(2,842,625 ) (441,460 )
Total liabilities and stockholders’
equity
$ 14,037,509 16,033,944
BILOXI MARSH
LANDS CORPORATION Statements of Revenues and Expenses June 30,
2014 and 2013
3 Months Ended 6 Months Ended June 30
June 30 2014 2013 2014 2013
Revenues: Oil and gas royalties $ 117,056 $ 177,584 $
233,223 $ 336,716 Severance taxes (4,264 ) (8,223 )
(8,995 ) (16,807 ) Oil and gas royalties, net
112,792 169,361 224,228
319,909 Other income (loss): Loss from investment in
partnership (87,013 ) (132,655 ) (320,013 ) (225,635 ) Dividends
and interest income 31,434 47,417 125,506 90,920 Gain on sale of
securities 431,673 758,911 1,113,645 1,496,891 Surface rentals
1,579 - 1,579 -
Total other income 377,673 673,673
920,717 1,362,176 Total revenues
and income 490,465 843,034
1,144,945 1,682,085 Expenses: Total
expenses 204,449 211,756 456,579
450,062 Net income before income taxes 286,016
631,278 688,366 1,232,023 Income tax expense 105,786
26,917 251,892 189,118
Net income $ 180,230 604,361 $ 436,474
1,042,905 Net income per share $ 0.07 $ 0.22 $
0.16 $ 0.38
Biloxi Marsh Lands CorporationColleen Starks, 504-837-4337
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