Biloxi Marsh Lands Corporation Provides Post Hurricane Gustav and Hurricane Ike Production Update
Biloxi Marsh Lands Corporation (PINK SHEETS:BLMC) provides the following update of its production:
BLMC’s Lessee Wells
On August 29th and 30th production from 11 wells operated by the Company’s Lessee’s The Meridian Resource and Exploration, LLC (TMR) and Manti Jamba, Ltd. (MANTI) were shut-in as Hurricane Gustav approached the area. After the passage of hurricanes Gustav and Ike, there is no reported damage to any of the wells and only minor damage reported by TMR to their production facilities. TMR advises that they commenced repairs to their production facilities today. After the completion of repairs to the various production facilities, the TMR wells are scheduled to begin to be placed back on production in the next three to five days. The wells operated by Manti resumed producing natural gas on September 7th.
B&L Exploration, LLC Wells
The two wells operated by Manti in which B&L Exploration, LLC owns a working interest are SL 18955 #1 (Lost Pearl) and SL 18957 #1 (Redfish Bend). These two wells returned to producing natural gas on September 6th and September 9th respectively.
The two new discovery wells SL 19064 #1 (False Mouth Bay) and the Lake Eugenie Land & Development #1 (South Boudreau Bay), in which B&L Exploration, LLC owns a working interest, are operated by Gulf Production, Inc. These two wells have not been placed on production and are awaiting the completion of pipelines necessary to produce natural gas from these wells. Construction crews in the field prior to Hurricane Gustav were forced to demobilize as Hurricane Gustav approached the area. The approach of Hurricane Ike prevented a re-mobilization until Hurricane Ike passed. We are advised that construction crews are re-mobilizing with construction scheduled to commence on September 18th. We are advised that the pipeline necessary to place SL 19064 #1 on production should be completed in three to four weeks and the pipeline necessary to place the Lake Eugenie Land & Development #1 well on production will be complete in four to five weeks. Construction of both pipelines is scheduled to take place contemporaneously. Each well should be placed on production shortly after the completion of the pipeline necessary for its production.
BLMC owns a 75% interest in B&L Exploration, LLC.
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 land. The company also derives revenues from its 75% ownership interest in B&L Exploration, LLC and minimal revenues from surface rentals.
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 general information.
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,”"hopeful,”"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.