Biloxi Marsh Lands Corporation Announces Unaudited Results for the Third Quarter and First Nine Months of 2015 and Provides Update
Biloxi Marsh Lands Corporation (PINK SHEETS: BLMC) today announces its
unaudited results for the third quarter of 2015 and first nine months of
2015 and provides update. The Company’s revenue for the three months
ending September 30, 2015 from oil and gas production for its fee lands
was $46,394 compared to revenue of $128,999 for the third quarter of
2014. For the first nine months of 2015, revenue generated from the
Company’s fee lands decreased to $188,193 from $353,227 for the same
period in 2014.
Meanwhile, dividend and interest income for the first nine months of
2015 was $110,788. This compares to $157,977 for the first nine months
of 2014. During 2014, it is noted that one of the Company’s equity
holdings declared a special dividend of $48,174 which is included in
dividend and interest income for the first nine months of 2014. During
the third quarter of 2015, the Company realized a cumulative gain from
the sale of investment securities of $310,813 compared to a cumulative
gain in the amount of $406,910 for the same period in 2014. For the
first nine months of 2015, the cumulative gain from the sale of
investment securities was $1,044,385 compared to $1,520,555 for the
first nine months of 2014. For the first nine months of 2015 and 2014,
total revenues were $636,703 and $1,071,647, respectively. For the third
quarter of 2015, total revenues included a $440,169 loss emanating from
the Company’s investment in B&L Exploration, LLC (B&L). This compares to
a loss of $663,044 from B&L for the third quarter of 2014.
Correspondingly, total revenue for the nine months ending September 30,
2015 includes a net loss of $745,370 generated by B&L compared to a net
loss of $983,057 from B&L for the first nine months of 2014. As an
operating oil and gas entity, B&L’s results included deductions for
depreciation, depletion and amortization (DD&A) costs relating to its
ongoing drilling and production activities. BLMC’s share of these DD&A
expenses was $478,715 and $671,872 for the first nine months of 2015 and
2014, respectively.
For the third quarter total expenses were $190,624 compared to $195,509
for the same period of the prior year. Total expenses for the first nine
months of 2015 and 2014 were $646,122 and $652,088, respectively. The
Company had a net loss of $122,769 or $.05 per share for the third
quarter of 2015 compared to a net loss of $170,432 or $.07 per share in
2014. Meanwhile, for the first nine months of 2015, there was a net loss
of $5,879 or $.00 per share compared to net income of $266,042 or $.10
per share for the same period of 2014.
As of September 30, 2015, the combined gross daily production rate from
8 wells operated by the Company's mineral lessees was approximately 1.90
million cubic feet of natural gas (mmcfg) and 126 barrels of oil per day
(BOPD) with net daily production accruing to the Company of
approximately .31 mmcfg and 2 BOPD. Meanwhile, as of September 30, 2015,
B&L’s gross daily production was approximately 29.21 mmcfg and 249
barrels of oil from 6 wells (including Highlander discovery well) with
approximately 1.89 mmcfg and 31 barrels of oil per day accruing to B&L.
As previously reported, the Company has filed a claim against the US
Army Corps of Engineers (USACE) for property damage and losses caused by
the Mississippi River Gulf Outlet (MR-GO). We are continuing to
aggressively pursue this claim and will keep our shareholders advised as
things progress.
Freeport-McMoRan Inc. (NYSE: FCX) announced on October 22, 2015 “In
September 2015, workover operations were completed on the Highlander
well, and production was re-established. Recent gross rates from
the well, which are restricted because of limited production facilities,
approximated 25 MMcf per day … Production testing in February 2015
indicated a flow rate of 75 MMCF per day. FM O&G expects to
complete the installation of additional processing facilities to
accommodate higher flow rates from the Highlander well by year-end 2015.
A second well location has been identified, and future plans are
being considered … FM O&G has identified multiple additional locations
on the Highlander structure, which is located onshore in South Louisiana
where FM O&G controls rights to more than 50,000 gross acres.”
B&L has been assigned and is contractually entitled to a 1.5% of 8/8ths
overriding royalty interest (ORRI) in the Highlander discovery well and
in all mineral leases obtained by FM O&G in its Highlander project area
located in Iberia, St. Martin, Assumption and Iberville Parishes,
Louisiana. B&L’s previously reported proved reserves have not included
any estimated reserves attributable to this 1.5% ORRI.
The flow rates for B&L’s Welder No. 1 well continue at rates near the
initial production rates seen in December of 2014. Meanwhile, B&L is
installing flowlines and facilities and continues to anticipate that its
Welder No. 3 well within its Lago Verde Project area should commence
production during the fourth quarter of 2015. B&L has a 62.5% working
interest in the Welder No. 3 well.
B&L was organized as a limited liability Company (LLC) under the laws of
Louisiana in July of 2006. B&L’s members are BLMC and Lake Eugenie Land
& Development, Inc. (LKEU), which have membership percentages of 75% and
25%, respectively.
William B. Rudolf, President and CEO, commented: “B&L’s management is
pleased with the results from its Lago Verde Project and is encouraged
that FM O&G successfully completed the workover of its Highlander
discovery well. The Highlander well returning to production at flow
rates equal to the flow rates prior to the workover is particularly
encouraging. B&L is hopeful that the Highlander flow rates will be
increased with the completion of modifications to production facilities
and a second well spud. While development of the Company’s core minerals
located beneath our fee lands continues to prove difficult, we believe
the Company will be well positioned to take advantage of improvement in
natural gas pricing, if and when this improvement occurs.”
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.
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 fee lands and revenues from
surface rentals. BLMC also owns a seventy-five percent interest in B&L
Exploration, LLC which explores for and develops oil and gas primarily
in Louisiana and Texas.
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,”
“could,” “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.
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BILOXI MARSH LANDS CORPORATION
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Statements of Assets, Liabilities, and Stockholders' Equity
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September 30, 2015 and 2014
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Assets
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2015
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2014
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|
|
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|
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Current assets:
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Cash and cash equivalents
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$
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2,826,249
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2,427,437
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Accounts receivable
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20,683
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82,507
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Prepaid expenses
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59,831
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62,765
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Accrued interest receivable
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19,346
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20,080
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Deferred tax asset
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39,173
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21,265
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Federal and state income taxes receivable
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21,451
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—
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Other assets
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3,830
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3,830
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Total current assets
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2,990,563
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2,617,884
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Other assets:
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Investment in partnership
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2,014,506
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3,148,005
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Marketable debt and equity securities - at cost
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7,288,762
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7,754,801
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Land
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234,939
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234,939
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Geological and geophysical costs - fee lands, net of amortization
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49,482
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—
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Levees and office furniture and equipment
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314,943
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315,160
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Accumulated depreciation
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(313,867
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)
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(313,215
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)
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Total other assets
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9,588,765
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11,139,690
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Total assets
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$
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12,579,328
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13,757,574
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Liabilities and Stockholders' Equity
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Current liabilities:
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Income taxes payable
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$
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—
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104,888
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Accrued expenses
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22,377
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7,606
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Other current liabilities
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—
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4,608
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Total current liabilities
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22,377
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117,102
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Stockholders' equity:
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Common stock, $.001 par value. Authorized, 20,000,000 shares;
issued, 2,851,196 shares; outstanding, 2,535,028 shares in 2015
and 2014, respectively
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47,520
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47,520
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Retained earnings
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15,352,056
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16,435,577
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Treasury stock - 316,168 shares in 2015 and 2014, respectively, at
cost
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(2,842,625
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)
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(2,842,625
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)
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Total liabilities and stockholders' equity
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$
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12,579,328
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13,757,574
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BILOXI MARSH LANDS CORPORATION
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Statements of Revenues and Expenses
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September 30, 2015 and 2014
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3 Months Ended
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9 Months Ended
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September 30
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September 30
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2015
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2014
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2015
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2014
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Revenues:
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Oil and gas royalties
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$
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49,597
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136,656
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202,052
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369,879
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Severance taxes
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(3,203
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)
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(7,657
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)
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(13,859
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)
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(16,652
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)
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Oil and gas royalties, net
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46,394
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128,999
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188,193
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353,227
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|
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|
|
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|
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Other (loss) income:
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|
|
|
|
|
|
|
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|
|
|
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Loss from investment in partnership
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(440,169
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)
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(663,044
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)
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(745,370
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)
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(983,057
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)
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Dividends and interest income
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42,218
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32,471
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110,788
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157,977
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Gain on sale of securities
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310,813
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406,910
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1,044,385
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1,520,555
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Surface rentals
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34,678
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21,366
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38,707
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22,945
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Total other (loss) income
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(52,460
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)
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(202,297
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)
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448,510
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718,420
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Total revenues and income
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|
|
|
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(6,066
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)
|
|
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(73,298
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)
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|
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636,703
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1,071,647
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|
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Expenses:
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|
|
|
|
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Total expenses
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190,624
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195,509
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646,122
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652,088
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Net (loss) income before income taxes
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(196,690
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)
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(268,807
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)
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|
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(9,419
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)
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419,559
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Income tax (benefit) expense
|
|
|
|
|
(73,921
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)
|
|
|
(98,375
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)
|
|
|
(3,540
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)
|
|
|
153,517
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Net (loss) income
|
|
|
|
$
|
(122,769
|
)
|
|
|
(170,432
|
)
|
|
|
(5,879
|
)
|
|
|
266,042
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net (loss) income per share
|
|
|
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$
|
(0.05
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)
|
|
|
(0.07
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)
|
|
|
(0.00
|
)
|
|
|
0.10
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View source version on businesswire.com: http://www.businesswire.com/news/home/20151106005962/en/ Copyright Business Wire 2015
Source: Business Wire
(November 6, 2015 - 4:05 PM EST)
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