Metairie, LA., August 10, 2012 (BUSINESS WIRE) – Biloxi Marsh Lands Corporation (PINK SHEETS: BLMC) today announces its unaudited results for the second quarter and first six months of 2012 and provides update. Revenue for the three months ending June 30, 2012 from oil and gas production from its fee lands was $89,658 compared to revenue of $379,255 for the second quarter of 2011. For the first six months of 2012, revenue generated from the Company’s fee lands decreased to $214,936 from $868,789 for the same period of 2011. During the second quarter of 2012, total revenue includes a net loss of $223,527 generated from the Company’s investment in B&L Exploration, LLC (“B&L”) compared to a loss of $1,825,816 for the second quarter of 2011. Correspondingly, total revenue for the six months ended June 30, 2012 includes a net loss of $795,860 generated from B&L. This loss compares to a net loss of $1,775,060 from B&L for the first six months of 2011. During the second quarter of 2012, the Company realized a cumulative gain from the sale of investment securities in the amount of $65,124 compared to a cumulative gain from the sale of investment securities of $498,007 for the same period in 2011. For the first six months of 2012, the gain from the sale of investment securities was $78,835 compared to $553,422 for the first six months of 2011. The Company’s operating expenses for the second quarter of 2012 were $186,940 compared to operating expenses of $271,884 for the same period of 2011. Operating expenses for the first six months of 2012 and 2011 were $440,593 and $573,860, respectively, representing a reduction in expenses of 23% year over year. The Company incurred a net loss of $124,177 or $.05 per share for the second quarter of 2012 compared to a loss of $840,545 or $.31 per share during the second quarter of 2011. Meanwhile, for the first half of 2012, the net loss was $474,919 or $.17 per share compared to a net loss of $570,890 or $.21 per share for the same period of 2011.

On June 15, 2012 in an effort to recover damages for property lost by the adverse effects of the Mississippi River Gulf Outlet (“MRGO”) canal which was constructed by the U.S. Army Corps of Engineers (“USACE”) during the early 1960’s and abandoned after hurricane Katrina, the Company along with Lake Eugenie Land & Development, Inc. (“LKEU”) filed suit against the USACE seeking; (1) compensation for the lands destroyed through erosion by the MRGO; and (2) the cost of providing shore protection to prevent future erosion, or the market value of any lands destroyed in the future if shore protection is not provided. The suit was filed in the United States Court of Federal Claims in Washington D.C. and has been assigned to Senior Judge Robert H. Hodges, Jr. We anticipate that this suit will take a protracted period of time to resolve and, as of this time, cannot give a forecast as to the timing of resolution. The Company has negotiated a full contingency fee and expense agreement with the law firm handling this matter on behalf of the Company.

The Goodrich Land and Energy No. 1 well located in St. Martin Parish, Louisiana and operated by Linder Oil Company was placed on production during the second quarter. Additionally, the Fleming Plantation No. 1 well located in Barataria Field, Jefferson Parish, Louisiana and operated by Alpine Exploration Co.’s Inc. was placed on production during the second quarter. With the additions of the Goodrich and Fleming Plantation wells, B&L now holds working interests in four additional wells that have come on production during the first six months of 2012. Both the SL 19706 No. 1 well operated by Clayton Williams Energy, Inc. and the CL&F No. 1 well operated by Forza Operating, LLC came on production during the first quarter of 2012. As of June 30, 2012, B&L has working interests in 10 wells capable of production and to which proved reserves are assigned.

As of June 30, 2012 the combined gross daily production rate from 4 wells operated by the Company’s mineral lessees was approximately 3.8 million cubic feet (mmcf) of natural gas with net daily production accruing to the Company of approximately 0.51 mmcf. The Ducros/SL 17958 Well operated by Alta Mesa, one of the Company’s mineral Lessees, went off of production due to mechanical problems requiring rig intervention to repair. This well was producing at rate of approximately 3,500 mmcfg per day prior to going off production in March of 2012. Alta Mesa advises that they hope to return this well to production during the second half of 2012. The Company has approximately 50% of the CRIS I RC SUA Unit from which this well is being produced.

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 June 30, 2012 was approximately 3.2 mmcfe (natural gas equivalents 15:1 oil to gas ratio) per day. It should be noted that 2 of the 10 wells in which B&L has a working interest were temporarily shut-in, thus not producing on June 30, 2012.

McMoRan Exploration Co. (NYSE:MMR) recently announced its acquisition of exploratory rights to 68,000 gross acres located in Iberia, St. Martin, Assumption and Iberville Parishes, Louisiana and its expectation to commence drilling an exploratory well in the second half of 2012. This prospect is identified as “Highlander onshore prospect” with the initial test well having a proposed total depth of 30,000 feet targeting the Eocene, Paleocene and Cretaceous objectives seen below the salt welds in MMR’s Davy Jones wells. B&L is contractually entitled to a 1.5% of 8/8ths overriding royalty interest in the exploratory well and in all mineral leases obtained by MMR in this 68,000 gross acre Highlander prospect area.

During the June 20, 2012 Central Gulf of Mexico Lease Sale 216/222 held by the Bureau of Ocean Energy Management (BOEM) in New Orleans, Louisiana, B&L, through its working interest partner Destin Resources, LLC, was the apparent high bidder on Eugene Island Block 74. All apparent high bids are subject to a review process by BOEM before they can be awarded. If awarded this lease will add approximately 5,000 gross acres to B&L’s leasehold inventory and will hopefully be additive to B&L’s proved reserves. B&L would have a 60% working interest in Eugene Island Block 74.

Meanwhile, 2D seismic operations are scheduled to commence during the second half of 2012 on B&L’s Phoenix Prospect in Union Parish, Louisiana. B&L and its operating partner, Greystone Oil & Gas, LLP, control approximately 7,000 gross acres in Union Parish. The objective in this prospect is the upper Smackover intervals as well as Lower Smackover Brown Dense formation.

In addition to the foregoing projects/prospects, B&L is actively assembling additional prospective acreage on which to explore and possibly place working interests with third party partners. During the current period of higher drilling costs, B&L is actively engaged in this strategy of assembling prospective acreage in an effort to improve drilling and completion economics and manage risk on a going forward basis. B&L plans to continually evaluate and adapt its strategies based on variables such as commodity prices, drilling and completion costs while continually looking for opportunities that represent value and allow B&L to manage risks.

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: “With the depressed price of natural gas, it has proved difficult to attract potential Lessee for exploration on our fee lands. Meanwhile, B&L’s revenues also have been negatively affected by the lower price of natural gas. To mitigate lower natural gas prices, B&L has successfully diversified into oil prospects and prospects rich in natural gas liquids which have helped to offset lower natural gas prices. Additionally, B&L is currently focused on putting together significant acreage positions which will allow it to achieve better economics and manage inherent risks in the current environment of higher drilling and completion costs. We are very excited about obtaining an overriding royalty interest in MMR’s ultra-deep Highlander Prospect covering some 68,000 acres onshore in Louisiana. B&L’s success in acquiring this position as well as other significant acreage positions in prospective areas should favorably position B&L for the future and lead to a robust drilling program during the end of 2012 and continuing into 2013.”

The Company maintains a website,, 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”, “should”, “outlook”, and “anticipates” and similar expressions as they relate to the Company or its management are intended to identify forward-looking statements.

Contact: Biloxi Marsh Lands Corporation
Colleen Starks: 504-837-4337