Biloxi Marsh Lands Corporation (PINK SHEETS:BLMC) today
announces its unaudited results for the third quarter and first
nine months of 2013 and provides update. Revenue for the three
months ending September 30, 2013 from oil and gas production from
its fee lands was $133,407 compared to revenue of $153,715 for the
third quarter of 2012. For the first nine months of 2013, revenue
generated from the Company’s fee lands increased to $453,316 from
$368,651 for the same period in 2012.
For the third quarter and first nine months of 2013, total
revenues were $35,968 and $1,730,353, respectively. During the
third quarter of 2013, total revenues included a $512,178 loss
emanating from the Company’s investment in B&L Exploration, LLC
(B&L). This compares to a loss of $121,089 from B&L for the
third quarter of 2012. Correspondingly, total revenue for the nine
months ended September 30, 2013 includes a net loss of $737,813
generated by B&L compared to a net loss of $916,949 from
B&L for the first nine months 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 $706,472 and $688,366 for the first nine months of
2013 and 2012, respectively.
Dividend and interest income for the first nine months of 2013
was $126,726. This compares to $131,624 for the first nine months
of 2012. During the third quarter of 2013, the Company realized a
cumulative gain from the sale of investment securities of $361,108
compared to a cumulative gain in the amount of $136,481 for the
same period in 2012. For the first nine months of 2013, the
cumulative gain from the sale of investment securities was
$1,857,999 compared to $215,316 for the first nine months of 2012.
Meanwhile, total expenses for the third quarter were $193,637
compared to $194,825 for the same period of the prior year. Total
expenses for the first nine months of 2013 and 2012 were $655,999
and $635,418, respectively. The Company had a net loss of $109,972
or $.04 per share for the third quarter of 2013 compared to net
income of $22,710 or $.01 per share in 2012. Meanwhile, for the
first nine months of 2013, net income was $932,933 or $.34 per
share compared to a net loss of $452,209 or $.17 per share for the
same period of 2012.
As of September 30, 2013, the combined gross daily production
rate from 4 wells operated by the Company's mineral lessees was
approximately 3.01 million cubic feet (mmcf) of natural gas with
net daily production accruing to the Company of approximately .364
mmcf. As of September 30, 2013, B&L’s net production breakdown
was approximately 1.0 mmcfg and 43 barrels of oil per day from 6
wells.
According to public sources, as of October 28, 2013,
Freeport-McMoRan Oil and Gas (FM O&G), a wholly owned
subsidiary of Freeport-McMoRan Copper and Gold Inc. (NSYE:FCX),
formerly McMoRan Exploration, Co. (NYSE:MMR), continued to drill
its Lomond North Well and had reached a depth of approximately
26,882 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 (ORRI) in the Lomond North prospect
exploratory well and in all mineral leases obtained by FM O&G
(formerly MMR) in this approximately 80,000 gross acre Highlander
project area located in Iberia, St. Martin, Assumption and
Iberville Parishes, Louisiana.
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. In addition to the Lomond North well
in which B&L has an ORRI, B&L participated in the drilling
of the Williams C-4 ST1 well during the third quarter of 2013. On
September 26, 2013 electric logs were run in the William C-4 ST1
well. Electric logs indicated approximately 22’ of net oil pay sand
in the “J” sand interval. In the subsequent flow test, the well
flowed at a maximum rate of 665.9 barrels of oil per day (BOPD) and
0.0 barrels of water per day (BWPD), with flowing tubing pressure
(FTP) of 1318 psi on a 13/64” choke. B&L has a 16.59% ground
floor working interest in this well. Linder Oil Company, the
Operator, advises that this well should be placed on production
during the first quarter of 2014.
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
Bass Group and B&L continue to work on developing prospects to
drill. The preliminary evaluation of the processed 3D seismic data
indicates multiple 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, it is
anticipated that drilling operations on the Lago Verde project
should commence during the first quarter of 2014 with a 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 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.
William B. Rudolf, President and CEO, commented: “Continued
lower natural gas prices has created a difficult business
environment in which to attract oil and gas companies to drill on
our fee lands. We are hopeful that natural gas prices will improve
and will continue efforts to market our fee lands. Meanwhile, we
are very pleased with log and flow test results on B&L’s
Williams C-4 ST1 well. This should be additive to B&L’s proved
reserves and 2014 revenues. Based on preliminary technical analysis
of the 3D seismic data acquired in B&L’s Lago Verde project
area, we are hopeful that B&L will commence a multi-well
drilling program on this project in 2014. Meanwhile, B&L’s
other projects continue to be of emphasis, notably its interest in
FM O&G’s Highlander Project Area and the Lomond North Well
which is currently drilling below 26,000 feet.”
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
and minimal revenues from surface rentals. The Company also derives
revenues and expenses from its ownership interest in B&L
Exploration, LLC (B&L).
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 September 30, 2013 and 2012
Assets 2013 2012
Current assets: Cash and cash equivalents $ 814,351
1,801,553 Accounts receivable 65,456 17,921 Prepaid expenses 59,888
55,380 Accrued interest receivable 23,707 28,681 Deferred tax asset
442,542 535,910 Federal income taxes receivable — 16,136 State
income taxes receivable — 18,151 Other assets 3,830 3,830
Total current assets 1,409,774 2,477,562 Other
assets: Investment in partnership 5,133,442 2,368,910 Marketable
debt and equity securities - at cost 9,047,705 10,466,966 Land
234,939 234,939 Levees and office furniture and equipment 307,746
299,574 Accumulated depreciation (304,975 ) (299,574 ) Total other
assets 14,418,857 13,070,815 Total assets $
15,828,631 15,548,377
Liabilities and
Stockholders' Equity Current liabilities: Income taxes payable
$ 52,859 — Accrued expenses 20,100 5,556 Other current liabilities
4,608 4,608 Total current liabilities 77,567 10,164
Stockholders' equity:
Common stock, $.001 par value. Authorized,
20,000,000 shares; issued, 2,851,196 shares; outstanding, 2,716,028
and 2,719,178 shares in 2013 and 2012, respectively
47,520 47,520 Retained earnings 16,145,004 15,899,504
Treasury stock - 135,168 and 132,018
shares in 2013 and 2012, respectively, at cost
(441,460 ) (408,811 ) Total liabilities and stockholders' equity $
15,828,631 15,548,377
BILOXI MARSH
LANDS CORPORATION Statements of Revenues and Expenses September
30, 2013 and 2012
3 Months Ended 9 Months Ended
September 30 September 30 2013 2012
2013 2012 Revenues: Oil and gas royalties $
140,154 $ 157,696 $ 476,870 $ 390,738 Severance taxes
(6,747.00
) (3,981 ) (23,554 ) (22,087 ) Oil and gas
royalties, net 133,407 153,715
453,316 368,651 Other (loss) income:
Loss from investment in partnership (512,178 ) (121,089 ) (737,813
) (916,949 ) Dividends and interest income 35,806 45,454 126,726
131,624 Gain on sale of securities 361,108 136,481 1,857,999
215,316 Surface rentals 11,675 12,175 11,675 12,175 Other
6,150 5,490 18,450 79,856
Total other (loss) income (97,439 ) 78,511
1,277,037 (477,978 ) Total revenues and
income 35,968 232,226 1,730,353
(109,327 ) Expenses: Total expenses
193,637 194,825 655,999
635,418 Net (loss) income before income taxes (157,669 )
37,401 1,074,354 (744,745 ) Income tax (benefit) expense
(47,697 ) 14,691 141,421
(292,536 ) Net (loss) income $ (109,972 ) 22,710 $
932,933 (452,209 ) Net (loss) income per share
$ (0.04 ) $ 0.01 $ 0.34 $ (0.17 )
Biloxi Marsh Lands CorporationColleen Starks, 504-837-4337
Biloxi Marsh Lands (CE) (USOTC:BLMC)
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