Metairie, LA – Biloxi Marsh Lands Corporation (PINK SHEETS:BLMC) today announced its un-audited results for the quarter ending March 31, 2006. Total revenue for the quarter was $8,351,820 compared to total revenue of $7,393,877 for the same period of 2005. During the first quarter of 2006 revenues from mineral royalties increased to $8,093,436 from $6,679,470 for the same period of 2005. It should be noted that this increase in royalty revenue was positively impacted by two factors. The first being increased commodity prices. The second being the Company’s election to takes its natural gas “in kind” which allowed us to realize income from four months of productions during the first quarter instead of the normal three months of production revenue per quarter. The second factor will be a one time occurrence. Meanwhile, expenses for the first quarter of 2006 were $491,245 compared to expenses of $258,200 for the prior year’s first quarter. The increase in expenses was mainly due to our $150,000 charitable contribution related to the establishment of the Biloxi Marsh Disaster Relief Corporation, Hurricane Katrina related office expense and the use of additional technical consultants to review and work the seismic data. Net earnings were $5,346,737 or $1.94 per share for the first quarter of 2006 compared to $4,487,411 or $1.63 for the same period of 2005.
As noted in the foregoing paragraph, the Company has established and funded the Biloxi Marsh Disaster Relief Corporation. The Biloxi Marsh Disaster Relief Corporation has applied for IRS 501C3 status and will operate under strict governance rules to ensure appropriate use of all funds. The purpose of the Biloxi Marsh Disaster Relief Corporation is to disburse monies and raise additional monies to aid in the rebuilding of St. Bernard Parish, Louisiana which was devastated by Hurricane Katrina. We invite all interested parties to contribute. Please contact the Company for information.
The Company reports its earnings on an income tax basis. Following that reporting procedure the Company paid dividends of $7,230,373 in 2004, and $8,951,891 in 2005. This year we have already paid $5,508.856. During 2006, we hope to equal or exceed the amount of dividends paid during 2005.
The Company has received the complete 3D data covering Phase I, Phase II, Phase III of the seismic survey completed by The Meridian Resources Resource and Exploration, LLC (TMR) over its property extending one mile beyond our boundaries in every direction. We are expecting to receive the final phase of the data on Monday, May 1, 2006. We are very excited about the acquisition of the seismic data and the building of data inventory. We are actively using the seismic to our strategic advantage.
As of March 31, 2006 the combined gross daily production from 13 wells including those operated by TMR and Manti Jambi, Inc. was approximately 40 mmcf with net daily production accruing to the Company of approximately 4.2 mmcf.
“We are pleased with our first quarter results, though we want all of our investors to realize the results were positively affected by one additional monthly royalty payment. In an effort to take advantage of our large open acreage position combined with the 3D seismic data, we have retained the services of a consulting geologist and two geophysicists to review and reprocess the 3D data to determine if there are any additional prospects within the boundaries of the data in our possession. We are hopeful that this proactive approach to managing all of our assets will increase shareholder value over time.” commented William B. Rudolf, President and Chief Executive Officer.
Please refer to our website www.biloximarshlandscorp.com for investor information and historical press releases.
Biloxi Marsh Lands Corporation owns approximately 90,000 acres of marsh lands located in St. Bernard Parish, Louisiana. As the landowner, it derives the vast majority of its revenue from oil and gas exploration and production activities that take place on or near the company’s land. The company also derives 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”, “hopeful”, “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.
PLEASE SEE PDF “BUTTON” ABOVE FOR ENTIRE RELEASE INCLUDING FINANCIAL TABLES