Biloxi Marsh Lands Corporation Announces Results for the Fourth Quarter of 2007, 12 Months Ending December 31, 2007

  
    
  
  
    
      Biloxi Marsh Lands Corporation (PINK SHEETS:BLMC) announces audited 
      results for the fourth quarter of 2007, year ending December 31, 2007 
      and provides update. Total revenue for the three months ending December 
      31, 2007 was $1,618,161 compared to $1,582,417 for the fourth quarter of 
      2006. Meanwhile for the year, total revenue was $4,639,317 compared to 
      total revenue of $9,578,519 in 2006. For 2007 total revenue includes a 
      $974,359 loss emanating from partnership income which represents the 
      Company’s interest in B&L Exploration, LLC 
      compared to income of $169,659 in the same category for the prior year. 
      The annual revenue breakdown is as follows: 2007 revenue from oil and 
      gas activity was $4,861,263 compared to revenue of $8,662,416 in 2006. 
      Dividend and interest income for 2007 was $521,942 compared to $790,481 
      for 2006. In 2007 we incurred a cumulative gain from the sale of 
      investment securities in the amount of $208,600 as compared to a 
      cumulative loss from the sale of investment securities of $59,088 in 
      2006. Meanwhile for the year, total expenses were $1,432,138 compared to 
      $1,640,095 for the prior year. For the fourth quarter of 2007 net 
      earnings were $691,915 or $.25 per share compared to $720,542 or $.26 
      per share for the same period of 2006. Meanwhile, net earnings for the 
      year were $2,340,175 or $.85 per share compared to $5,551,599 or $2.02 
      per share in 2006. Due to the Company’s 
      earnings exceeding the revenue threshold tests under the income tax 
      regulations, the Company was required to file its income tax returns 
      using the accrual basis of tax accounting. Effective January 1, 2007, in 
      order to achieve consistency in reporting the Company changed its method 
      of financial reporting from the cash receipts and disbursements method 
      of reporting to the accrual method of reporting. For comparative 
      purposes we have adjusted our Statement of Revenues and Expenses and 
      Retained Earnings for 2006 to reflect the accrual method of 
      reporting. The change in our reporting method has no material effect on 
      our cash flows.
    
    
      We reported at the end of 2005 that the Company had approximately 82,000 
      acres open and available for exploration and development. This clearly 
      indicated the need for management to take steps to jumpstart drilling 
      activity. In December of 2006 we announced the formation of B & L 
      Exploration, LLC (BLX) of which the Company owns 75%. BLX subsequently 
      placed drilling packages with the Manti Group and a group led by 
      Kaiser-Francis Gulf Coast, Ltd and Gulf Production Company. As the 
      result of the placement of these drilling packages BLX participated in 
      the drilling of five wells during 2007 with three wells being 
      successfully completed and two wells being abandoned as dry-holes. 
      During the fourth quarter of 2007 two of these wells were placed on 
      production and were producing natural gas at a combined daily rate of 
      approximately 8.5 mmcf as of December 31, 2007 with net daily production 
      accruing to BLX of approximately 1.6 mmcf. The third well is awaiting 
      the construction of a pipeline. We anticipate that the pipeline should 
      be completed and this well placed on production by the end of the second 
      quarter of 2008. All three of these wells are located off of Company 
      property in state waters and represents the first time that the Company 
      has had royalty revenues from sources outside the boundaries of our 
      property. BLX is scheduled to participate with the group led by 
      Kaiser-Francis and Gulf Production in the drilling of two additional 
      wells during the first half of 2008 and is working independently on the 
      development and placement of additional shallow and deep prospects.
    
    
      On January 31, 2008 we announced our participation in the NAPE Expo in 
      Houston, Texas (please see www.napeonline.com). 
      With the assistance of BLX’s technical 
      consultants we presented acreage under the control of BLX showing two 
      Tuscaloosa prospects (Alpha and Beta) developed over the past 12 to 18 
      months using existing geological well control and 3D seismic data (see 
      the Company’s website www.biloximarshlandscorp.com 
      for additional information). While we are encouraged by the interest 
      expressed in these prospects during the NAPE Expo and subsequent follow 
      up, these deeper Tuscaloosa prospects are much more difficult to place 
      than the shallower drilling packages previously placed by BLX.
    
    
      As of December 31, 2007 the combined gross daily production rate from 9 
      wells operated by the Company’s mineral 
      Lessees was approximately 14.6 million cubic feet (mmcf) with net daily 
      production accruing to the Company of approximately 1.5 mmcf. Combining 
      this daily natural gas production with the Company’s 
      proportional share of the daily production from the two new BLX wells 
      makes the total net daily production accruing to the Company as of 
      December 31, 2007 approximately 3.1 mmcf, an increase over the 2.4 mmcf 
      cumulative daily production accruing to the Company at the end of 2006.
    
    
      The year end reserve study commissioned by the Company and completed by 
      an independent reservoir engineer estimates that as of December 31, 2007 
      the Company’s “Developed 
      Producing” (PDP) reserves were .914 billion 
      cubic feet (bcf) of natural gas and estimates that the “Developed 
      Non-Producing” (PDNP) reserves were .622 bcf, 
      with the “Proved Un-Developed” 
      (PUD) reserves being 1.012 bcf, totaling 2.549 bcf of estimated proved 
      natural gas reserves. While for the years ending 2006 and 2007 the total 
      amount of proved reserves remained constant at approximately 2.5 bcf, 
      the “Proved Developed Producing” 
      (PDP) reserves decreased year over year from approximately 1.5 bcf to 
      .91 bcf, a decrease of .59 bcf in PDP reserves. Additionally, this 
      reserve study estimates that slightly more than 26% of the PDP and PDNP 
      reserves will deplete by the end of 2008. In addition to the foregoing 
      estimated proved reserves, another proved reserve study completed by the 
      same independent reservoir engineer estimates that BLX’s 
      proved reserves as of December 31, 2007 were 1.0263 billion cubic feet 
      (bcf) of natural gas. Based upon the Company’s 
      seventy-five percent ownership of BLX the portion of these estimated 
      reserves allocated to the Company was .77 bcf of natural gas. Combining 
      the Company’s portion of the proved reserves 
      in both studies increases the estimated proved reserves accruing to the 
      Company to 3.3 bcf of natural gas. The proved reserve studies referenced 
      above include explanatory notes that are an integral part of each study. 
      A copy of the 2008 President’s Report to 
      Shareholders that includes these notes will be available on the 
      Company’s website after March 17, 2008. We 
      recommend that all interested parties refer to our website to view these 
      notes and other relevant information: www.biloximarshlandscorp.com.
    
    
      Prior to 2004 the Company paid one dividend each year. During 2007 the 
      Company returned to this custom of paying one dividend per calendar 
      year, paying $1.00 per share of outstanding common stock or $2,754,428 
      in December of 2007. It is anticipated that the custom of paying one 
      dividend per calendar year will be followed in 2008. It should be noted 
      that the Company paid a dividend equating to slightly more than its net 
      earnings during 2007 and since 2002 the Company has paid close to 
      $36,000,000 in total dividends.
    
    
      William B. Rudolf, President and CEO, commented: “We 
      are pleased with the initial success of BLX, the corresponding increase 
      in daily production rates and addition of proved reserves. We plan to 
      continue to focus on our key asset which is Company’s 
      property while using all the assets at our disposal to find 
      opportunities that we believe will increase shareholder value.”
    
    
      We remind our shareholders and interested parties that St. Bernard 
      Parish, Louisiana, the Parish where our property is located, was 
      indescribably devastated by Hurricane Katrina. To assist in the Parish’s 
      rebuilding the Company has established and funded the Biloxi Marsh 
      Disaster Relief Fund Corporation. Detailed information about the fund is 
      available on its website www.selarelief.com. 
      During 2006 the fund applied for and received IRS 501 (c) (3) tax exempt 
      status making all contributions to the fund tax deductible. Those living 
      outside the hurricane affected zone and all interested parties are asked 
      to remember the people of St. Bernard Parish, Louisiana by donating to 
      the Biloxi Marsh Disaster Relief Fund Corporation. You may send a check 
      to the fund at the company’s address or 
      contribute using a credit card on the Fund’s 
      website: www.selarelief.com.
    
    
      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 including President’s 
      Report to Shareholders and general information about the company. 
      During January 2008 we moved our office to One Galleria Blvd., Suite 
      #902. Complete and updated contact information is available on the 
      Company’s website: www.biloximarshlandscorp.com.
    
    
      Biloxi Marsh Lands Corporation owns approximately 90,000 acres of marsh 
      lands located in St. Bernard Parish, Louisiana. As the landowner, it 
      derives the vast majority of its revenue from oil and gas exploration 
      and production activities that take place on or near the company’s 
      land. The company also derives 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 audited financial statements, but do 
      not include the information and footnotes that are an integral part of 
      the complete financial statements. A complete copy of the Financial 
      Statements and Schedule, Years Ended December 31, 2007 and 2006 
      along with the 2008 President’s Report to 
      Shareholders and the Company’s Proxy 
      Statement will be available after March 17, 2008 on our website www.biloximarshlandscorp.com 
      or through requesting a copy in writing; from the Company - Attention: 
      Investor Relations, Biloxi Marsh Lands Corporation, One Galleria Blvd., 
      Suite #902, Metairie, LA 70001.
    
    
      
        
          BILOXI MARSH LANDS CORPORATION
        
      
      
        
          Statements of Assets, Liabilities, and Stockholders' Equity-Income 
          Tax Basis
        
      
      
        
          December 31, 2007 and 2006
        
      
      
        
           
        
        
           
        
        
           
        
        
           
        
        
        
        
        
        
        
        
           
        
        
        
        
        
        
           
        
        
        
        
        
      
      
        
          Assets
        
        
        
        
        
        
          2007
        
        
        
        
        
        
          2006
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Current assets:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Cash and cash equivalents
        
        
        
        
          $
        
        
          2,197,864
        
        
        
        
          $
        
        
          1,232,846
        
      
      
        
        
        
          Marketable debt and equity securities - at cost
        
        
        
        
        
        
          4,685,887
        
        
        
        
        
        
          4,732,349
        
      
      
        
        
        
          Accounts receivable
        
        
        
        
        
        
          419,572
        
        
        
        
        
        
          581,311
        
      
      
        
        
        
          Accrued interest receivable
        
        
        
        
        
        
          64,071
        
        
        
        
        
        
          57,606
        
      
      
        
        
        
          Prepaid federal income taxes
        
        
        
        
        
        
          —
        
        
        
        
        
        
          96,392
        
      
      
        
        
        
          Prepaid expenses
        
        
        
        
        
        
          40,488
        
        
        
        
        
        
          58,586
        
      
      
        
        
        
          Prepaid state income taxes
        
        
        
        
        
        
          18,744
        
        
        
        
        
        
          40,783
        
      
      
        
        
        
        
        
        
        
        
        
          Total current assets
        
        
        
        
        
        
          7,426,626
        
        
        
        
        
        
          6,799,873
        
      
      
        
          Investments:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Other investments
        
        
        
        
        
        
          1,551,636
        
        
        
        
        
        
          1,775,995
        
      
      
        
        
        
          Marketable debt and equity securities - at cost
        
        
        
        
        
        
          5,713,702
        
        
        
        
        
        
          7,183,413
        
      
      
        
        
        
          Land - at cost
        
        
        
        
        
        
        
        
          234,939
        
        
        
        
        
        
          234,939
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          7,500,277
        
        
        
        
        
        
          9,194,347
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
          Total assets
        
        
        
        
          $
        
        
          14,926,903
        
        
        
        
          $
        
        
          15,994,220
        
      
      
        
          Liabilities and Stockholders' Equity
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Current Liabilities
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Federal income taxes payable
        
        
        
        
          $
        
        
          36,420
        
        
        
        
          $
        
        
          —
        
      
      
        
        
        
          Deferred tax liability
        
        
        
        
        
        
          612,715
        
        
        
        
        
        
          1,232,000
        
      
      
        
        
        
          Accrued expenses
        
        
        
        
        
        
          50,065
        
        
        
        
        
        
          117,054
        
      
      
        
        
        
          Payroll taxes payable
        
        
        
        
        
        
          27,956
        
        
        
        
        
        
          33,326
        
      
      
        
        
        
          Other current liabilities
        
        
        
        
        
        
          2,160
        
        
        
        
        
        
          —
        
      
      
        
        
        
        
        
        
        
        
        
          Total current liabilities
        
        
        
        
        
        
          729,316
        
        
        
        
        
        
          1,382,380
        
      
      
        
          Stockholders' equity:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          
            Common stock, par value $.001 - 20,000,000 shares authorized, 
            2,851,196 shares issued, 2,754,428 shares outstanding
          
        
        
        
        
        
        
          47,520
        
        
        
        
        
        
          47,520
        
      
      
        
        
        
          Retained earnings
        
        
        
        
        
        
          14,224,882
        
        
        
        
        
        
          14,639,135
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          14,272,402
        
        
        
        
        
        
          14,686,655
        
      
      
        
        
        
          Less cost of treasury stock - 96,768 shares
        
        
        
        
        
        
          (74,815)
        
        
        
        
        
        
          (74,815)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          14,197,587
        
        
        
        
        
        
          14,611,840
        
      
      
        
        
        
        
        
        
        
        
        
          Total liabilities and stockholders' equity
        
        
        
        
          $
        
        
          14,926,903
        
        
        
        
          $
        
        
          15,994,220
        
      
    
    
      
        
          BILOXI MARSH LANDS CORPORATION
        
      
      
        
          Statements of Revenues and Expenses and Retained Earnings
        
      
      
        
          Years ended December 31, 2007 and 2006
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
          3 Months Ended
        
        
        
        
          12 Months Ended
        
      
      
        
        
        
        
        
        
        
        
        
          December 31
        
        
        
        
          December 31
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
        
          2007
        
        
           
        
        
        
        
           
        
        
          2006
        
        
        
        
           
        
        
          2007
        
        
           
        
        
        
        
           
        
        
          2006
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Revenues:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Oil and gas
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Lease bonuses and delayed rentals
        
        
        
        
          $
        
        
          320,650
        
        
        
        
        
        
          $
        
        
          124,000
        
        
        
        
          $
        
        
          340,900
        
        
        
        
        
        
          $
        
        
          339,121
        
        
        
      
      
        
          Royalties (net of production taxes)
        
        
        
        
           
        
        
          1,179,476
        
        
           
        
        
        
        
           
        
        
          1,157,211
        
        
        
        
           
        
        
          4,520,363
        
        
           
        
        
        
        
           
        
        
          8,323,295
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total oil and gas
        
        
        
        
        
        
           
        
        
          1,500,126
        
        
           
        
        
        
        
           
        
        
          1,281,211
        
        
        
        
           
        
        
          4,861,263
        
        
           
        
        
        
        
           
        
        
          8,662,416
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Other:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Partnership income (loss)
        
        
        
        
        
        
          84,994
        
        
        
        
        
        
        
        
          169,659
        
        
        
        
        
        
          (974,359
        
        
          )
        
        
        
        
        
        
          169,659
        
        
        
      
      
        
          Dividends and interest
        
        
        
        
        
        
        
        
          133,092
        
        
        
        
        
        
        
        
          122,006
        
        
        
        
        
        
          521,942
        
        
        
        
        
        
        
        
          790,481
        
        
        
      
      
        
          
            Gain (loss) on sale of securities
          
        
        
        
        
        
        
          (113,902
        
        
          )
        
        
        
        
        
        
          -
        
        
        
        
        
        
          208,600
        
        
        
        
        
        
        
        
          (59,088
        
        
          )
        
      
      
        
          Surface rentals
        
        
        
        
        
        
           
        
        
          13,851
        
        
           
        
        
        
        
           
        
        
          9,541
        
        
        
        
           
        
        
          21,871
        
        
           
        
        
        
        
           
        
        
          15,051
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total other revenues
        
        
        
        
        
        
           
        
        
          118,035
        
        
           
        
        
        
        
           
        
        
          301,206
        
        
        
        
           
        
        
          (221,946
        
        
          )
        
        
        
        
           
        
        
          916,103
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total revenue
        
        
        
        
        
        
           
        
        
          1,618,161
        
        
           
        
        
        
        
           
        
        
          1,582,417
        
        
        
        
           
        
        
          4,639,317
        
        
           
        
        
        
        
           
        
        
          9,578,519
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Expenses
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total expenses
        
        
        
        
        
        
           
        
        
          663,180
        
        
           
        
        
        
        
           
        
        
          621,201
        
        
        
        
           
        
        
          1,432,138
        
        
           
        
        
        
        
           
        
        
          1,640,095
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net Income before provision for income taxes
        
        
           
        
        
          954,981
        
        
           
        
        
        
        
           
        
        
          961,216
        
        
        
        
           
        
        
          3,207,179
        
        
           
        
        
        
        
           
        
        
          7,938,424
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Income taxes
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Provision for income taxes
        
        
        
        
           
        
        
          263,066
        
        
           
        
        
        
        
           
        
        
          240,674
        
        
        
        
           
        
        
          867,004
        
        
           
        
        
        
        
           
        
        
          2,386,825
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net Income
        
        
        
        
        
        
        
        
        
        
          691,915
        
        
        
        
        
        
        
        
          720,542
        
        
        
        
        
        
          2,340,175
        
        
        
        
        
        
        
        
          5,551,599
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Retained earnings-beginning of period
        
        
        
        
           
        
        
          16,287,395
        
        
           
        
        
        
        
           
        
        
          19,427,449
        
        
        
        
           
        
        
          14,639,135
        
        
           
        
        
        
        
           
        
        
          20,105,248
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
          16,979,310
        
        
        
        
        
        
        
        
          20,147,991
        
        
        
        
        
        
          16,979,310
        
        
        
        
        
        
        
        
          25,656,847
        
        
        
      
      
        
          Dividends
        
        
        
        
        
        
        
        
           
        
        
          2,754,428
        
        
           
        
        
        
        
           
        
        
          5,508,856
        
        
        
        
           
        
        
          2,754,428
        
        
           
        
        
        
        
           
        
        
          11,017,712
        
        
           
        
      
      
        
          Retained earnings-end of period
        
        
        
        
          $
        
        
          14,224,882
        
        
           
        
        
        
        
          $
        
        
          14,639,135
        
        
        
        
          $
        
        
          14,224,882
        
        
           
        
        
        
        
          $
        
        
          14,639,135
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
      
      
        
          Net Income Per Share
        
        
        
        
        
        
          $
        
        
          0.25
        
        
           
        
        
        
        
          $
        
        
          0.26
        
        
        
        
          $
        
        
          0.85
        
        
           
        
        
        
        
          $
        
        
          2.02