Metairie, LA., October 26, 2012 (BUSINESS WIRE) – Biloxi Marsh Lands Corporation (PINK SHEETS: BLMC) today announces its unaudited results for the third quarter and first nine months of 2012 and provides update. Revenue for the three months ending September 30, 2012 from oil and gas production from its fee lands was $153,715 compared to revenue of $307,632 for the third quarter of 2011. For the first nine months of 2012, revenue generated from the Company’s fee lands decreased to $368,651 from $1,176,421 for the same period of 2011. During the third quarter of 2012, total revenue includes a net loss of $121,089 generated from the Company’s investment in B&L Exploration, LLC (“B&L”) compared to a loss of $687,747 for the third quarter of 2011. Correspondingly, total revenue for the nine months ended September 30, 2012 includes a net loss of $916,949 generated from B&L. This loss compares to a net loss of $2,462,807 from B&L for the first nine months of 2011. During the third quarter of 2012, the Company realized a cumulative gain from the sale of investment securities in the amount of $136,481 compared to a cumulative gain from the sale of investment securities of $58,623 for the same period in 2011. For the first nine months of 2012, the gain from the sale of investment securities was $215,316 compared to $612,045 for the first nine months of 2011. The Company’s operating expenses for the third quarter of 2012 were $194,825 compared to operating expenses of $195,300 for the same period of 2011. Operating expenses for the first nine months of 2012 and 2011 were $635,418 and $769,160, respectively, representing a reduction in expenses of 21% year over year. The Company had net income of $22,710 or $.01 per share for the third quarter of 2012 compared to a loss of $175,299 or $.06 per share during the third quarter of 2011. Meanwhile, for the first nine months of 2012, the net loss was $452,209 or $.17 per share compared to a net loss of $746,189 or $.27 per share for the same period of 2011.

As of September 30, 2012 the combined gross daily production rate from 2 wells operated by the Company’s mineral lessees was approximately 0.53 million cubic feet (mmcf) of natural gas with net daily production accruing to the Company of approximately 0.05 mmcf. The Ducros/SL 17958 Well operated by Alta Mesa, one of the Company’s mineral Lessees, remains off production due to mechanical problems which require rig intervention to repair. This well was producing at a rate of approximately 3,500 mmcfg per day prior to going off production in March of 2012. Reworking operations to bring this well back on production are underway, and Alta Mesa advises that they hope to return this well to production prior to the end of 2012. The Company has approximately 50% of the CRIS I RC SUA Unit from which this well is being produced. Following the passage of Hurricane Isaac, Alta Mesa returned its remaining wells to production on October 2, 2012.

Combining the 2 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 September 30, 2012 was approximately 1.7 mmcfe (natural gas equivalents 15:1 oil to gas ratio) per day. It should be noted that 3 of the 10 wells in which B&L has a working interest were temporarily shut-in, thus not producing on September 30, 2012.

Hurricane Isaac impacted production when the storm came through the region in late August. All wells were shut-in in advance of the storm. The Goodrich Land and Energy No. 1 well, CL&F No. 1 well, Harry Bourg No.1 well, and Fleming Plantation No. 1 well were placed back on production shortly after the storm and sustained minimal damage, if any. The SL 19061 #1 well, Lake Eugenie Land & Development #1 well, and Delacroix #41 ST well sustained damage during the storm, and after repairs, these wells were returned to production. As of September 30, 2012, B&L has working interests in 10 wells capable of production and to which proved reserves are assigned.

The SL 19076 No. 1 well located in Coquille Bay in Plaquemines Parish, Louisiana, and operated by Clayton Williams Energy, Inc. (“CWE”) experienced minor mechanical problems immediately prior to Hurricane Isaac. Remedial work was completed prior to Hurricane Isaac’s passage, but the storm required shutting in the well and facilities prior to determining if the remedial work was successful. Due to damage to the facilities caused by the storm that necessitated repairs, the well has yet to be returned to production. CWE advises that the well should be returned to production during December of 2012.

McMoRan Exploration Co. (NYSE:MMR) in its Third-Quarter/Nine-Month 2012 Results updated its “Ultra-Deep Exploration Activities” including “that drilling commenced on September 19, 2012 in the Highlander area on the Lomond North ultra-deep prospect. Lomond North, which is located in St. Martin Parish, LA, is currently drilling below 6,700 feet. This exploratory well has a proposed total depth of 30,000 feet and is targeting Eocene, Paleocene and Cretaceous objectives below the salt weld. McMoRan has identified multiple exploratory prospects in the Highlander area where it controls the rights to approximately 80,000 gross acres in Iberia, St. Martin, Assumption and Iberville Parishes, Louisiana.” As previously reported B&L is contractually entitled to a 1.5% of 8/8ths overriding royalty interest in the Lomond North prospect exploratory well and in all mineral leases obtained by MMR in this approximately 80,000 gross acre Highlander area located in Iberia, St. Martin, Assumption and Iberville Parishes, Louisiana.

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 high bidder on Eugene Island Block 74. BOEM has since awarded this lease which has added approximately 5,000 gross acres to B&L’s leasehold inventory. B&L holds a 60% working interest in Eugene Island Block 74 and is currently working with its partner to further delineate potential drilling targets.

Meanwhile, 2D seismic operations commenced during the third quarter of 2012 on B&L’s Phoenix Prospect in Union Parish, Louisiana, and the project now is in the interpretation and mapping phase. 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.

As previously reported, 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.

A reflection of the success of B&L’s strategy is its recent acquisition of approximately 50 square miles or 30,000 acres of mineral and surface rights in Calhoun and Victoria County, Texas. This project is identified as B&L’s Lago Verde 3D Seismic Project. On September 18, 2012 B&L commenced field operations for the collection of proprietary 3D seismic data over this 50 square mile area. This focus area is situated in the prolific oil rich leg of the Frio trend with adjacent fields having produced in excess of 200 million barrels of oil (MMBO) and 1.8 trillion cubic feet (TCF) of natural gas. The potential targets are Miocene and Oligocene which are relatively shallow ranging from 3,000 feet to 11,000 feet and are drilled with land rigs. Additionally, there is extensive pipeline infrastructure in the area. B&L has an 87.5% working interest in this Lago Verde 3D Seismic Project.

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: “While the price of natural gas has recovered somewhat from its lows earlier this year, it still has not reached the level needed to foster interest in drilling for natural gas on our fee lands. Meanwhile, B&L has successfully acquired key mineral assets including the approximately 5,000 acre Eugene Island Block 74 and the approximately 30,000 acre Lago Verde 3D Seismic Project. We are pleased that McMoRan commenced drilling its Lomond North ultra-deep prospect in September which is located within MMR’s Highlander area. It is encouraging that MMR has apparently expanded its Highlander area acreage position from some 68,000 acres to approximately 80,000 gross acres. MMR’s public announcement that it has identified multiple exploratory prospects in the Highlander area is also encouraging. All of these events could, in time, represent tremendous value for B&L. B&L’s success in acquiring these mineral positions in prospective areas should favorably position B&L for the future and lead to a robust drilling program during 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.

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