Biloxi Marsh Lands Corporation Announces Unaudited Results for the First Quarter of 2016 and Provides Update
Biloxi Marsh Lands Corporation (PINK SHEETS:BLMC) today announces its
unaudited results for the first quarter of 2016 and provides update. The
Company’s revenue for the three months ending March 31, 2016 from oil
and gas production for its fee lands was $34,094 compared to revenue of
$86,439 in 2015.
Meanwhile, dividend and interest income for the first three months of
2016 was $32,602, compared to $35,255 for the first three months of
2015. During the first quarter of 2016, the Company essentially broke
even from realized gains on investment securities with a slight gain of
$71 compared to a cumulative gain in the amount of $249,878 for the same
period in 2015. During the first quarter of 2016, total revenues
included a $284,309 loss from the Company’s investment in B&L
Exploration, LLC (B&L). This compares to a loss of $225,848 from B&L for
the first quarter of 2015. Expenses for the quarter were $188,973
compared to $218,502 for the same period in 2015. The Company incurred a
net loss of $253,747 or $.10 per share for the first quarter of 2016
compared to a net loss of $45,427 or $.02 per share in 2015.
As of March 31, 2016, the combined gross daily production rate from 7
wells operated by the Company's mineral lessees was approximately 1.47
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 .24 Mmcfg and 2 BOPD. Meanwhile, as of March 31, 2016,
B&L’s gross daily production was approximately 55.24 Mmcfg and 363
barrels of oil from 7 wells with approximately 2.15 Mmcfg and 46 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). It is anticipated that this
litigation against the federal government will be a long process.
As previously reported, Freeport-McMoRan Oil and Gas (FM O&G), a wholly
owned subsidiary of Freeport-McMoRan Copper and Gold Inc. (NSYE:FCX), in
its January 26, 2016 news release announced “during November 2015, FM
O&G completed the installation of additional processing facilities to
accommodate higher flow rates from the Highlander well. In December
2015, gross rates from the Highlander well averaged approximately 44
MMcf per day.”
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 and maintained by FM O&G in its
Highlander project area located in Iberia, St. Martin, Assumption and
Iberville Parishes, Louisiana.
Both the Goodrich Land and Energy No. 1 well and the Williams C-4 ST1
well, operated by Linder Oil Co., were returned to production during the
first quarter of 2016. The combined production from the two wells is
approximately 350 barrels of oil per day. B&L has an average working
interest of 15.8% in the Goodrich Land and Energy No. 1 well and the
Williams C-4 ST1 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: “While commodity prices
have made a slight recovery that we hope will continue, pricing has not
returned to previous levels which creates a difficult operating
environment for the Company. B&L’s management is focused on driving cost
efficiencies while reducing its planned capital investments so that it
is in position to identify and take advantage of opportunities that may
arise in the current lower cost operating environment.”
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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March 31, 2016 and 2015
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Assets
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2016
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2015
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Current assets:
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Cash and cash equivalents
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$
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2,236,251
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2,895,100
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Accounts receivable
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20,773
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83,342
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Prepaid expenses
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23,665
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24,980
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Accrued interest receivable
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19,346
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17,100
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Deferred tax asset
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205,918
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87,731
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Federal income taxes receivable
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7,195
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10,017
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State income taxes receivable
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41,434
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13,674
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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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2,558,412
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3,135,774
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Other assets:
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Investment in partnership
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2,667,720
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2,534,029
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Marketable debt and equity securities - at cost
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6,586,386
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6,566,385
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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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31,937
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68,764
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Levees and office furniture and equipment
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315,943
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314,943
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Accumulated depreciation
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(314,164
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)
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(313,583
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)
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Total other assets
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9,522,761
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9,405,477
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Total assets
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$
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12,081,173
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12,541,251
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Liabilities and Stockholders' Equity
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Current liabilities:
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Accrued expenses
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$
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22,550
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23,848
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Total current liabilities
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22,550
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23,848
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Stockholders' equity:
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Common stock, $.001 par value. Authorized, 20,000,000 shares;
issued, 2,851,196 shares; outstanding, 2,535,028 shares in 2016
and 2015, respectively
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47,520
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47,520
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Retained earnings
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14,853,728
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15,312,508
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Treasury stock - 316,168 shares in 2016 and 2015, respectively, at
cost
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(2,842,625
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)
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(2,842,625
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)
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Total liabilities and stockholders' equity
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$
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12,081,173
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12,541,251
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BILOXI MARSH LANDS CORPORATION
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Statements of Revenues and Expenses
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March 31, 2016 and 2015
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2016
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2015
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Revenues:
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Oil and gas royalties
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$ 34,094
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$ 86,439
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Total oil and gas revenues
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34,094
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86,439
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Other income (loss):
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Loss from investment in partnership
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(284,309
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(225,848
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Dividends and interest income
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32,602
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35,255
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Gain on sale of securities
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71
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249,878
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Total other income
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(251,636
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59,285
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Total revenues and income
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(217,542
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145,724
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Expenses:
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Total expenses
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188,973
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218,502
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Net loss before income taxes
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(406,515
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)
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(72,778
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Income tax benefit
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(152,768
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)
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(27,351
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Net loss
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$ (253,747
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(45,427
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Net loss per share
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$ (0.10
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)
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$ (0.02
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View source version on businesswire.com: http://www.businesswire.com/news/home/20160513005831/en/
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