Metairie, LA., May 12, 2011 (BUSINESS WIRE) – Biloxi Marsh Lands Corporation (PINK SHEETS:BLMC) today announces its unaudited results for the first quarter of 2011 and provides update. Total revenue for the three months ending March 31, 2011 was $671,366 compared to $445,686 for the first quarter of 2010. For the first quarter total revenue includes income of $50,756 emanating from partnership income which represents the Company’s interest in B&L Exploration, LLC (B&L) compared to a loss of $2,617 in the same category for the first quarter of 2010. During the first quarter of 2011 we incurred a cumulative gain from the sale of investment securities in the amount of $55,415 as compared to a cumulative gain from the sale of investment securities of $57,350 for the same period in 2010. Meanwhile for the quarter, total expenses were $301,976 compared to $253,549 for the prior year. For the first quarter of 2011, net earnings increased to $269,655 or $0.10 per share from $134,496 or $0.05 per share for the same period of 2010.
As of April 15, 2011 the combined gross daily production rate from 6 wells operated by the Company’s mineral lessees was approximately 11.6 million cubic feet (mmcf) of natural gas with net daily production accruing to the Company of approximately 1.6 mmcf. Combining the 6 wells operated by the Company’s mineral lessees with the BLMC’s interest in the B&L wells, the total combined daily production accruing to BLMC (from B&L and Lessee wells) as of April 15, 2011 was approximately 3.9 mmcfe (natural gas equivalents 15:1 oil to gas ratio) per day.
B&L Exploration, LLC (B&L), a partially owned subsidiary of the Company, placed its Gautreaux #1 well on production as of April 1, 2011. Meanwhile, the operator of the LL&E #1 continues to plan completion operations and hopes to have this well on production during the first half of 2011. B&L is scheduled to participate in drilling of additional wells during the second and third quarter of 2011.
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 2011, we intend to focus on the development of prospects on our property as well as diligently prosecuting B&L’s drilling program. With the current wells scheduled to be drilled, we are hopeful that the drilling program will add to B&L reserves.”
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, 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 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 “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
Colleen Starks: 504-837-4337