Biloxi Marsh Lands Corporation Announces Unaudited Results for the First Quarter of 2008 and Provides Update

  
    
  
  
    
      Biloxi Marsh Lands Corporation (PINK SHEETS:BLMC) today announces its 
      unaudited results for the first quarter of 2008 and provides update. 
      Total revenue for the three months ending March 31, 2008 was $1,802,394 
      compared to $1,435,985 for the first quarter of 2007. For the first 
      quarter total revenue includes $670,692 in revenue emanating from 
      partnership income which represents the Company’s 
      interest in B&L Exploration, LLC compared to a net loss of $247,331 in 
      the same category for the first quarter of the prior year. During the 
      first quarter of 2008 we incurred a cumulative gain from the sale of 
      investment securities in the amount of $140,573 as compared to a 
      cumulative gain from the sale of investment securities of $282,457 for 
      the same period in 2007. Meanwhile for the quarter, total expenses were 
      $323,407 compared to $248,832 for the prior year. The increase in 
      expenses is mainly due to increases in legal fees related to more 
      activity in our concursus proceedings and nonrecurring expenses related 
      to moving our office. For the first quarter of 2008 net earnings 
      increased to $1,031,502 or $.37 per share from $824,288 or $.30 per 
      share for the same period of 2007.
    
    
      Management has taken steps to jump start drilling activity through the 
      formation of B & L Exploration, LLC (BLX) of which the Company owns 75%. 
      As previously announced BLX placed two new wells on production during 
      the fourth quarter of 2007. Revenues from the production emanating from 
      these two wells net of ongoing expenses is directly attributable to 
      $670,692 in partnership income cited in the foregoing paragraph. While 
      the two wells SL 18955 #1 and 18957 #1 represent relative small 
      reservoirs, due to the excellent sand quality these two wells continued 
      to produce at a combined daily rate of 7.6 mmcf as of March 31, 2008. 
      Also, as of March 31, 2008 the combined gross daily production rate from 
      9 wells operated by the Company’s mineral 
      Lessees was approximately 11.9 million cubic feet (mmcf) with net daily 
      production accruing to the Company of approximately 1.25 mmcf. Combining 
      this daily natural gas production with the Company’s 
      proportional share of the daily production from the two BLX wells makes 
      the total net daily production accruing to the Company as of March 31, 
      2008 approximately 3.2 mmcf of natural gas.
    
    
      On April 22, 2008 BLX and its partners successfully flow tested SL 19064 
      #1 with commencement of construction of the approximately six mile long 
      pipeline to produce this well scheduled to start on or about May 1, 
      2008. It is anticipated that construction will take approximately 4 to 5 
      weeks. If the construction is completed as scheduled this well should be 
      on production during June of 2008. Meanwhile, we have been delayed in 
      commencing drilling operations of SL 19061 #1 and Lake Eugenie Land & 
      Development 33-1 #1 due to permitting delays caused by the State of 
      Louisiana. We anticipate receiving final drilling permits shortly with 
      these two well scheduled to be drilled sequentially starting in June 
      2008.
    
    
      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. We are 
      continuing our efforts to place Alpha and Beta prospects as well as 
      additional shallower prospects.
    
    
      William B. Rudolf, President and CEO, commented: “We 
      are pleased with the commencement of the positive revenue stream 
      emanating from our investment in BLX and with the additional well 
      scheduled to come on line during the second quarter. We believe we have 
      created a positive base investment which will enable the company to move 
      forward.”
    
    
      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 as well as its proportional share of revenue generated by BLX. 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 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
        
      
      
        
          Statements of Assets, Liabilities, and Stockholders' Equity
        
      
      
        
          March 31, 2008 and 2007
        
      
      
        
           
        
        
           
        
        
           
        
        
           
        
        
        
        
        
        
        
        
        
        
           
        
        
           
        
      
      
        
          Assets
        
        
        
        
          2008
        
        
           
        
        
          2007
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
        
           
        
      
      
        
          Current assets:
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Cash and cash equivalents
        
        
          $
        
        
          8,893,918
        
        
        
        
          2,056,443
        
        
        
      
      
        
        
        
          Accounts receivable
        
        
        
        
          337,890
        
        
        
        
          535,518
        
        
        
      
      
        
        
        
          Prepaid state income taxes
        
        
        
        
          —
        
        
        
        
          2,450
        
        
        
      
      
        
        
        
          Prepaid expenses
        
        
        
        
          18,425
        
        
        
        
          29,102
        
        
        
      
      
        
        
        
          Accrued interest receivable
        
        
        
        
          14,033
        
        
           
        
        
          42,021
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
          Total current assets
        
        
        
        
          9,264,266
        
        
           
        
        
          2,665,534
        
        
           
        
      
      
        
          Investments:
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Other investments
        
        
        
        
          2,222,328
        
        
        
        
          1,528,663
        
        
        
      
      
        
        
        
          Marketable debt and equity securities - at cost
        
        
        
        
          4,637,809
        
        
        
        
          12,551,004
        
        
        
      
      
        
        
        
          Land - at cost
        
        
        
        
          234,939
        
        
           
        
        
          234,939
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          7,095,076
        
        
           
        
        
          14,314,606
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
          Total assets
        
        
          $
        
        
          16,359,342
        
        
           
        
        
          16,980,140
        
        
           
        
      
      
        
          Liabilities and Stockholders' Equity
        
        
        
        
        
        
        
      
      
        
          Current liabilities:
        
        
        
        
        
        
        
      
      
        
        
        
          Federal income taxes payable
        
        
          $
        
        
          516,842
        
        
        
        
          382,141
        
        
        
      
      
        
        
        
          State income taxes payable
        
        
        
        
          51,498
        
        
        
        
          —
        
        
        
      
      
        
        
        
          Deferred tax liability
        
        
        
        
          459,536
        
        
        
        
          1,078,000
        
        
        
      
      
        
        
        
          Accrued expenses
        
        
        
        
          100,217
        
        
        
        
          81,494
        
        
        
      
      
        
        
        
          Other
        
        
        
        
        
        
        
        
          2,160
        
        
           
        
        
          2,377
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
          Total current liabilities
        
        
        
        
          1,130,253
        
        
           
        
        
          1,544,012
        
        
           
        
      
      
        
          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
        
        
        
        
          15,256,384
        
        
           
        
        
          15,463,423
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          15,303,904
        
        
        
        
          15,510,943
        
        
        
      
      
        
        
        
          Less cost of treasury stock - 96,768 shares
        
        
        
        
          (74,815
        
        
          )
        
        
          (74,815
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          15,229,089
        
        
           
        
        
          15,436,128
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
          Total liabilities and stockholders' equity
        
        
          $
        
        
          16,359,342
        
        
           
        
        
          16,980,140
        
        
           
        
      
    
    
      
        
          BILOXI MARSH LANDS CORPORATION
        
      
      
        
          Statements of Revenues and Expenses and Retained Earnings
        
      
      
        
          March 31, 2008 and 2007
        
      
      
        
        
        
        
        
           
        
        
        
      
      
        
        
        
           
        
        
          2008
        
        
        
        
           
        
        
          2007
        
        
           
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Revenues:
        
        
        
        
        
        
        
      
      
        
          Oil and Gas
        
        
        
        
        
        
        
      
      
        
          Royalties (net of production taxes)
        
        
           
        
        
          894,231
        
        
        
        
           
        
        
          1,294,040
        
        
           
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Total oil and gas revenues
        
        
           
        
        
          894,231
        
        
        
        
           
        
        
          1,294,040
        
        
           
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Other:
        
        
        
        
        
        
        
      
      
        
          Partnership income (Loss)
        
        
        
        
          670,692
        
        
        
        
        
        
          (247,331
        
        
          )
        
      
      
        
          Dividends and interest
        
        
        
        
          96,898
        
        
        
        
        
        
          106,819
        
        
        
      
      
        
          Gain on sale of securities
        
        
           
        
        
          140,573
        
        
        
        
           
        
        
          282,457
        
        
           
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Total other revenues
        
        
           
        
        
          908,163
        
        
        
        
           
        
        
          141,945
        
        
           
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Total revenues
        
        
           
        
        
          1,802,394
        
        
        
        
           
        
        
          1,435,985
        
        
           
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Expenses
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Total expenses
        
        
           
        
        
          323,407
        
        
        
        
           
        
        
          248,832
        
        
           
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Net income before provision for income taxes
        
        
           
        
        
          1,478,987
        
        
        
        
           
        
        
          1,187,153
        
        
           
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Income taxes
        
        
        
        
        
        
        
      
      
        
          Provision for income taxes
        
        
           
        
        
          447,485
        
        
        
        
           
        
        
          362,865
        
        
           
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Net income
        
        
        
        
          1,031,502
        
        
        
        
        
        
          824,288
        
        
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Retained earnings-beginning of period
        
        
           
        
        
          14,224,882
        
        
        
        
           
        
        
          14,639,135
        
        
           
        
      
      
        
        
        
        
        
          15,256,384
        
        
        
        
        
        
          15,463,423
        
        
        
      
      
        
          Dividends
        
        
           
        
        
          -
        
        
        
        
           
        
        
          -
        
        
           
        
      
      
        
          Retained earnings-end of period
        
        
          $
        
        
          15,256,384
        
        
        
        
          $
        
        
          15,463,423
        
        
        
      
      
        
        
        
           
        
        
        
        
           
        
      
      
        
          Net income per share
        
        
          $
        
        
          0.37
        
        
        
        
          $
        
        
          0.30