Biloxi Marsh Lands Corporation (the “Company”) originated from a landholding group named St. Bernard Syndicate. The Company was founded during the 1930s to acquire and own approximately 90,000 acres of marsh lands in St. Bernard Parish, Louisiana. According to the Company’s original Articles of Incorporation, the initial objectives and purposes of the Company were to “buy, sell and deal in swamp lands and other real estate and goods” of “every description necessary or useful for the operation of the corporation.” Additional purposes and objectives were “to hold, own, maintain, work, develop, sell, lease, exchange, hire, convey, mortgage, or otherwise dispose of and deal in, lands and leaseholds and any interest ” in order “to explore for oil and other minerals and to lease land of the corporation ” for such purposes. The final purpose was to “develop” and “grant license” …“any hunting and trapping rights of any kind” …… “to the property of the Corporation.”
The Company is incorporated in the State of Delaware with its principal offices in Metairie, Louisiana. Its acreage is located southeast of New Orleans. In the Company’s early years the Company derived the majority of its income from trapping leases. Today, the primary business purpose of the Company is to grant Oil, Gas and Mineral Leases, Seismic Permits, and Options to Lease which allow exploration, development and production of oil and gas on its property by third parties. The first Oil, Gas and Mineral Lease was entered into in 1936 and the Company has executed numerous agreements since.
Since May of 1957, the Company entered into a series of lease agreements with the State of Louisiana and the Louisiana Department of Wildlife and Fisheries (LDWF) for the establishment and maintenance of the Biloxi Wildlife Management Area (WMA). Under the terms of the lease agreements, the Company retains the exclusive right to conduct its primary business purpose which is to lease its property allowing third parties to fully explore for and develop the Company’s minerals. Meanwhile the Company is providing a vast area of undeveloped wetlands for public use. The Company is proud to provide 35,644 acres of its property for the public’s recreation and enjoyment. Click this link for additional information.
The Company obtains alligator tags from the LDWF each year and, pursuant to the LDWF’s conservation policy, harvests alligators from its property. In addition, the Company currently leases a significant portion of the surface of its property to private individuals and commercial interests for hunting and fishing. In 2013 the Company enrolled in the Department of Wildlife and Fisheries alligator egg program. For information on available hunting or fishing, leases please contact the Company at firstname.lastname@example.org.
In the late 1990s the Company granted a seismic permit to Western Geophysical Company covering the western perimeter of the Company’s property facilitating Western Geophysical Company’s 3D seismic survey of the Lake Borgne area. Using the 3D seismic data acquired during this survey, Manti Resources, Inc. (Manti) successfully drilled and completed its Biloxi Marsh Lands (BML) #1 well. On May 27, 2001 Manti completed electric logging operations on this well, logging 320 gross feet and 222 net feet of pay within the CRIS I natural gas sand interval (see Press Release Archive and Investor/Shareholder Information). This discovery significantly increased interest within the Oil and Gas Industry in St. Bernard Parish, Louisiana. Shortly after this discovery and as the result of the Company’s marketing efforts, the Company and The Meridian Resource Corporation (TMR – now Alta Mesa Holding, LP) entered into numerous oil and gas lease agreements in December 2001. As permitted under these agreements, TMR completed a 3D seismic survey covering approximately 86,000 acres of the Company’s property which has yielded several successful well completions (see Press Release Archive and Investor/Shareholder Information). As provided for in the lease agreements, from 2002 through 2004, TMR delivered to the Company 3D seismic data covering the Company’s property and one mile beyond the boundaries of the property in every direction. On December 15, 2005 the primary term of the lease agreements between the Company and TMR expired. After the expiration of these lease agreements, in early 2006 the Company and TMR commenced discussions concerning the possibility of entering into a joint exploration agreement within the area covered by the Biloxi Marsh 3D seismic survey. Unfortunately, we were unable to reach acceptable terms with TMR and during the second quarter of 2006 discussions were terminated.
Shortly thereafter Biloxi Marsh Lands Corporation along with Lake Eugenie Land & Development, Inc. formed B&L Exploration, LLC (B&L) with the purpose of developing and placing prospects within the boundaries of 3D seismic in the Company’s possession as well as giving the Company an opportunity to participate in wells located outside the boundaries of the Company’s property. Initially, B&L placed two prospect drilling packages which it generated with two different industry groups. The lead investor in the first package was Manti Exploration, LLC, and the lead investor in the second package was Kaiser-Francis Gulf Coast. The drilling of these prospect drilling packages commenced in 2006. With its other working interest partners, B&L completed 5 of the first 7 wells drilled in St. Bernard Parish near the Company’s property, and by the end of 2013 these wells are projected to have produced over 7.1 billion cubic feet of dry natural gas.
Commencing in 2009 B&L elected to expand its opportunity beyond the Biloxi Marsh area and began taking working interests in wells in other areas. Since 2007, B&L along with its other working interest partners have completed multiple successful wells that as of the end of 2013 are projected to have produced over 16 billion cubic feet of natural gas and 360,000 barrels of oil and condensate. These wells were not generated by B&L, but were generated by third parties. B&L participated in those wells either as the operator or has taken a non-operating working interest. As of December 31, 2013, B&L was the operator of 5 wells including two salt water disposal wells.
Due to escalating costs of drilling over water combined with the decline in natural gas price, beginning in 2012, B&L has elected to return to generating prospects and placing the prospects with industry participants while receiving a promoted interest. B&L plans to participate in the prospects which it is generating.
Biloxi Marsh Lands continues to maximize the value of the property though the surface land’s flourishing wildlife and subsurface mineral development. Through the operations of B&L, Biloxi hopes to diversify and increase the Company’s oil & gas reserves, thereby creating value for the shareholders.