Metairie, LA., May 11, 2012 (BUSINESS WIRE) – Biloxi Marsh Lands Corporation (PINK SHEETS:BLMC) today announces its unaudited results for the first quarter of 2012 and provides update. Revenue for the three months ending March 31, 2012 from oil and gas production for its fee lands was $125,278 compared to revenue of $489,534 for the first quarter of 2011. For the first quarter total revenue included a net loss of $572,333 emanating from the Company’s investment in B&L Exploration, LLC (B&L). This loss compares to income of $50,756 from B&L for the first quarter of 2011. The current quarter’s net loss from B&L was driven primarily by the costs incurred in drilling and completing two new wells. During the first quarter of 2012, the Company realized a cumulative gain from the sale of investment securities in the amount of $13,711 compared to a cumulative gain from the sale of investment securities of $55,415 for the same period in 2011. Meanwhile, for the quarter, total expenses were $253,653 compared to $301,976 for the prior year. For the first quarter of 2012, the Company incurred a net loss of $350,742 or $0.13 per share compared to a net profit of $269,655 or $0.10 per share for the same period of 2011.
As of March 31, 2012 the combined gross daily production rate from 4 wells operated by the Company’s mineral lessees was approximately 4.8 million cubic feet (mmcf) of natural gas with net daily production accruing to the Company of approximately 0.6 mmcf. Combining the 4 wells operated by the Company’s mineral lessees with BLMC’s interest in the B&L wells, the total combined daily production accruing to BLMC (from B&L and Lessee wells) as of March 31, 2012 was approximately 3.02 mmcfe (natural gas equivalents 15:1 oil to gas ratio) per day.
In March 2012, the SL 19706 No. 1 Well operated by Clayton Williams Energy, Inc. and the CL&F No. 1 Well operated by Forza Operating, LLC both came on production. B&L has a 15% and 9.375% non-operated working interest in the SL 19706 No. 1 Well and the CL&F No. 1 Well, respectively. The Goodrich Land and Energy No. 1 Well located in St. Martin Parish, Louisiana and operated by Linder Oil Company was drilled, successfully completed and partially flow tested in February of 2012. Linder Oil Company advises this well should be placed on production during the second quarter of 2012. B&L has a 15% non-operated working interest in this well.
In March 2012, the Fleming Plantation No. 1 Well located in Barataria Field, Jefferson Parish, Louisiana, and operated by Alpine Exploration Co.’s Inc. was drilled. While electric logs were inconclusive they indicated approximately 8 net feet of possible oil pay in the 11600’ sand interval and another approximately 16 net feet of possible oil pay in the upper “E” sand interval. Subsequently, the well has been completed. Unfortunately, the flow test to production of the 11600’ sand interval yielded unexpected volumes of water that may make this zone non-commercial. The Operator is evaluating the situation and B&L is awaiting the Operator’s recommendation on a path forward. B&L has a 16.62% working interest in this well.
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.
William B. Rudolf, President and CEO, commented: “During 2012, we intend to focus on the development of prospects on our property as well as diligently executing B&L’s drilling program. With the current wells scheduled to be drilled, we are hopeful that the drilling program will continue to add to B&L reserves.”
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. At the annual meeting of shareholders in April 2012, a presentation on the Company and B&L was delivered. The shareholder presentation can be viewed on the Company’s website.
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”, “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.
Contact: Biloxi Marsh Lands Corporation
Colleen Starks: 504-837-4337