Biloxi Marsh Lands Corporation (PINK SHEETS: BLMC) today
announces its unaudited results for the third quarter and first
nine months of 2009 and provides update. Total revenue for the
third quarter of 2009 was $23,459,199 compared to total revenue of
$249,062 for the same period of 2008. For the first nine months of
2009 revenue was $24,717,858 compared to $3,312,461 for the same
period of 2008. As previously announced 2009 revenues include
$23,827,543 in funds received from the settlement effective July 1,
2009 of the litigation that was pending in the Louisiana State
Court in St. Bernard Parish to determine the ownership of Sections
1, 2 and 3, Township 13 South, Range 16 East. The receipt of these
funds is nonrecurring revenue item and represents $20,876,815 in
royalty income and $2,950,728 in interest income, totally
$23,827,543. For the third quarter total revenue includes a loss of
$725,947 emanating from partnership income/loss which represents
the Company’s interest in B&L Exploration, LLC compared to a
net loss of $594,213 in the same category for the third quarter of
the prior year. The losses are attributable to costs associated
with B&L Exploration’s participation in drilling programs
during the third quarter of each year. Excluding revenues received
as the result of settlement of the litigation, during the third
quarter of 2009, oil and gas revenues were $240,829 compared to
$743,799 for the same period of 2008 and for the first nine months
oil and gas revenues were $863,487 compared to $2,372,488 for the
first nine months of 2008. Meanwhile, operating expenses for the
third quarter of 2009 were $292,572 compared to operating expenses
of $266,386 for the same period of 2008. Net earnings were
$15,168,494 or $5.53 per share for the third quarter of 2009
compared to $39,532 or $.01 per share for the same period of 2008,
and for the first nine months of 2009 net earnings were $15,586,289
or $5.68 per share compared to $1,714,582 or $.62 per share for the
same period of 2008.
As previously reported, it should be noted that the foregoing
referenced settlement does not involve the disputes raised in the
pending litigation in State Court in St. Bernard Parish with the
State of Louisiana regarding the State’s claims to certain
waterbottoms owned by the Company. As of this time, there is
approximately $13.5mm deposited in the various concursus accounts
established to hold the funds relating to these disputes between
the Company and the State of Louisiana. Again, please refer to the
March 18, 2009 President’s Report to Shareholders for additional
information, a copy of which is available on the Company’s website:
www.biloximarshlandscorp.com.
Also as previously announced, due to the receipt of the
settlement funds the Board of Directors declared a $2.00 per share
special dividend payable on Wednesday, July 29, 2009 to
shareholders of record as of the close of business on Friday, July
24, 2009.
As of September 30, 2009 B&L’s three wells, SL 18955 #1, SL
19064 #1 and Lake Eugenie Land & Development #1, were producing
at a combined daily rate of approximately 4.4 mmcfg. Also, as of
September 30, 2009 the combined gross daily production rate from 5
wells operated by the Company’s mineral Lessees was approximately
7.3 million cubic feet (mmcf) with net daily production accruing to
the Company of approximately 717 mcf. Combining this daily natural
gas production with the Company’s proportional share of the daily
production from the B&L wells makes the total net daily
production accruing to the Company as of September 30, 2009
approximately 1.6 mmcf of natural gas.
We are pleased to announce that the B&L Exploration, LLC
drilled and successfully completed the SL 19061 well #1. On August
16, 2009, electric logs indicated a gross sand interval of
approximately 128ft true vertical depth (TVD) with a clear
resistive natural gas gross pay zone of approximately 66ft TVD.
While it is not clear whether or not the entire 128ft will be
commercially productive, sidewall core analysis indicated natural
gas throughout the entire 128ft gross sand interval. During
October, the 19061 well #1 was perforated from 7,076 and 7,116
measured depth (MD). On October 20th a limited flow test was
completed. The well flowed at a rate equivalent to approximately
1.6mmcfg per day through a 6/64th inch choke with flowing tube
pressure of 2,500 psi and no fluid production. Following the
limited flow test the shut in tubing pressure was 2,850 psi. This
limited flow test was completed to purge the well bore of drilling
and completion fluids is not necessarily indicative of the well’s
sustainable production performance. Pending the issuance of a
Coastal Use Permit by the State of Louisiana and the construction
of a flowline, it is anticipated that this well will be placed on
production during the first quarter of 2010.
In addition to the SL19061 Well #1 B&L participated on a
non-operated basis in the drilling of a wildcat oil well in
northern Louisiana. This well was drilled to its objective depth
and completed during July. It is currently temporarily abandoned
pending further evaluation and the drilling of an offset well. The
offset well will be spud during November 2009 with B&L
participating as a working interest partner.
William B. Rudolf, President and CEO, commented: “We are pleased
that we were able to settle a portion of the litigation. This frees
up time and assets to focus on building the company’s reserves
through B&L Exploration, LLC. With our declining fee land based
production, our plan for the fourth quarter of 2009 and first
quarter of 2010 is to participate in an accelerated drilling
program in an attempt to build our reserves. The fact the B&L
drilled and successfully completed the SL 19061 Well #1 as the
Operator is a significant move forward in the evolution of B&L
Exploration, LLC.”
The Company maintains a website; www.biloximarshlandscorp.com
and we strongly recommend that all investors and interested parties
visit the website to view historical press releases, historical
financial statements including President’s Report to Shareholders,
and general information about the company. During January 2008 we
moved our office to One Galleria Blvd., Suite #902. Complete and
updated contact information is available on the Company’s website:
www.biloximarshlandscorp.com.
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 from its 75% 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 “Statement of Revenues and Expenses and
Retained Earnings” have been derived from an interim un-audited
financial statement which does 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, 2009 and
Comparable Period
Assets 2009 2008 Current assets: Cash
and cash equivalents $ 21,907,037 7,628,925 Accounts receivable
80,989 140,106 Prepaid expenses 55,327 59,265 Accrued interest
receivable 72,385 59,124 Federal income taxes receivable — 92,244
State income taxes receivable — 31,483 Other current assets 3,830 —
Total current assets 22,119,568 8,011,147 Investment in
Partnership 580,188 1,713,637 Marketable debt and equity securities
- at cost 7,305,824 6,167,159 Land - at cost 234,939 234,939 Levees
and office furniture and equipment 188,352 187,972 Accumulated
Depreciation (188,352) (187,972) 8,120,951 8,115,735 Total
assets $ 30,240,519 16,126,882
Liabilities and Stockholders'
Equity Current liabilities: Federal income taxes payable $
6,947,629 — State income taxes payable 734,757 — Deferred tax
liability — 153,178 Accrued Expenses 40,455 51,535 Other current
liabilities 2,520 — Total current liabilities 7,725,361 204,713
Stockholders' equity: Common stock, $.001 par value. Authorized
20,000,000 shares; issued 2,851,196 shares; outstanding 2,741,428
shares in 2009 and 2,754,428 in 2008 47,520 47,520 Retained
earnings 22,650,703 15,939,464 Treasury stock - 109,768 and 96,768
shares in 2009 and 2008, respectively, at cost (183,065) (74,815)
Total liabilities and stockholders' equity $ 30,240,519 16,116,882
BILOXI MARSH LANDS CORPORATION Statements of Revenues and
Expenses September 30, 2009 and Comparable Period
3 Months Ended 9 Months Ended
September 30 September 30 2009 2008
2009 2008 Revenues: Oil and Gas
Pipeline Right of Ways $ — — $ —
25,031
Royalties (net of production taxes) 21,117,644 743,799 21,740,302
2,347,457 Total Oil and Gas 21,117,644 743,799 21,740,302
2,372,488
Other: Partnership Income (Loss) (725,947)
(594,213) (358,433) 162,001 Dividends and interest 3,054,952 80,834
3,200,978 245,589 Gain (Loss) on sale of securities — 7,374 122,461
521,115 Surface Rentals 12,550 11,268 12,550 11,268 Total
Other revenues 2,341,555 (494,737) 2,977,556 939,973 Total
Revenue 23,459,199 249,062 24,717,858 3,312,461
Expenses Total Expenses 292,572 266,386 1,066,612
931,843 Net Income before provision for income taxes
23,166,627 (17,324) 23,651,246 2,380,618
Income taxes
Provision for income taxes 7,998,133 (56,856) 8,064,957 666,036
Net Income $ 15,168,494 39,532 $ 15,586,289 1,714,582
Net Income Per Share $ 5.53 0.01 $ 5.68 0.62
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