Biloxi Marsh Lands Corporation Announces Unaudited Results for the Third Quarter and First Nine Months of 2012 and Provides

  Biloxi Marsh Lands Corporation Announces Unaudited Results for the Third
  Quarter and First Nine Months of 2012 and Provides Update

Business Wire

METAIRIE, La. -- October 26, 2012

Biloxi Marsh Lands Corporation (PINK SHEETS: BLMC) today announces its
unaudited results for the third quarter and first nine months of 2012 and
provides update. Revenue for the three months ending September 30, 2012 from
oil and gas production from its fee lands was $153,715 compared to revenue of
$307,632 for the third quarter of 2011. For the first nine months of 2012,
revenue generated from the Company’s fee lands decreased to $368,651 from
$1,176,421 for the same period of 2011. During the third quarter of 2012,
total revenue includes a net loss of $121,089 generated from the Company’s
investment in B&L Exploration, LLC (“B&L”) compared to a loss of $687,747 for
the third quarter of 2011. Correspondingly, total revenue for the nine months
ended September 30, 2012 includes a net loss of $916,949 generated from B&L.
This loss compares to a net loss of $2,462,807 from B&L for the first nine
months of 2011. During the third quarter of 2012, the Company realized a
cumulative gain from the sale of investment securities in the amount of
$136,481 compared to a cumulative gain from the sale of investment securities
of $58,623 for the same period in 2011. For the first nine months of 2012, the
gain from the sale of investment securities was $215,316 compared to $612,045
for the first nine months of 2011. The Company’s operating expenses for the
third quarter of 2012 were $194,825 compared to operating expenses of $195,300
for the same period of 2011. Operating expenses for the first nine months of
2012 and 2011 were $635,418 and $769,160, respectively, representing a
reduction in expenses of 21% year over year. The Company had net income of
$22,710 or $.01 per share for the third quarter of 2012 compared to a loss of
$175,299 or $.06 per share during the third quarter of 2011. Meanwhile, for
the first nine months of 2012, the net loss was $452,209 or $.17 per share
compared to a net loss of $746,189 or $.27 per share for the same period of
2011.

As of September 30, 2012 the combined gross daily production rate from 2 wells
operated by the Company's mineral lessees was approximately 0.53 million cubic
feet (mmcf) of natural gas with net daily production accruing to the Company
of approximately 0.05 mmcf. The Ducros/SL 17958 Well operated by Alta Mesa,
one of the Company’s mineral Lessees, remains off production due to mechanical
problems which require rig intervention to repair. This well was producing at
a rate of approximately 3,500 mmcfg per day prior to going off production in
March of 2012. Reworking operations to bring this well back on production are
underway, and Alta Mesa advises that they hope to return this well to
production prior to the end of 2012.  The Company has approximately 50% of the
CRIS I RC SUA Unit from which this well is being produced. Following the
passage of Hurricane Isaac, Alta Mesa returned its remaining wells to
production on October 2, 2012.

Combining the 2 wells operated by the Company's mineral lessees with BLMC’s
interest in the B&L wells, the total combined daily production accruing to
BLMC (from B&L and Lessee wells) as of September 30, 2012 was approximately
1.7 mmcfe (natural gas equivalents 15:1 oil to gas ratio) per day. It should
be noted that 3 of the 10 wells in which B&L has a working interest were
temporarily shut-in, thus not producing on September 30, 2012.

Hurricane Isaac impacted production when the storm came through the region in
late August. All wells were shut-in in advance of the storm. The Goodrich Land
and Energy No. 1 well, CL&F No. 1 well, Harry Bourg No.1 well, and Fleming
Plantation No. 1 well were placed back on production shortly after the storm
and sustained minimal damage, if any. The SL 19061 #1 well, Lake Eugenie Land
& Development #1 well, and Delacroix #41 ST well sustained damage during the
storm, and after repairs, these wells were returned to production. As of
September 30, 2012, B&L has working interests in 10 wells capable of
production and to which proved reserves are assigned.

The SL 19076 No. 1 well located in Coquille Bay in Plaquemines Parish,
Louisiana, and operated by Clayton Williams Energy, Inc. (“CWE”) experienced
minor mechanical problems immediately prior to Hurricane Isaac. Remedial work
was completed prior to Hurricane Isaac’s passage, but the storm required
shutting in the well and facilities prior to determining if the remedial work
was successful. Due to damage to the facilities caused by the storm that
necessitated repairs, the well has yet to be returned to production. CWE
advises that the well should be returned to production during December of
2012.

McMoRan Exploration Co. (NYSE:MMR) in its Third-Quarter/Nine-Month 2012
Results updated its “Ultra-Deep Exploration Activities” including “that
drilling commenced on September 19, 2012 in the Highlander area on the Lomond
North ultra-deep prospect. Lomond North, which is located in St. Martin
Parish, LA, is currently drilling below 6,700 feet. This exploratory well has
a proposed total depth of 30,000 feet and is targeting Eocene, Paleocene and
Cretaceous objectives below the salt weld. McMoRan has identified multiple
exploratory prospects in the Highlander area where it controls the rights to
approximately 80,000 gross acres in Iberia, St. Martin, Assumption and
Iberville Parishes, Louisiana.” As previously reported B&L is contractually
entitled to a 1.5% of 8/8ths overriding royalty interest in the Lomond North
prospect exploratory well and in all mineral leases obtained by MMR in this
approximately 80,000 gross acre Highlander area located in Iberia, St. Martin,
Assumption and Iberville Parishes, Louisiana.

During the June 20, 2012 Central Gulf of Mexico Lease Sale 216/222 held by the
Bureau of Ocean Energy Management (BOEM) in New Orleans, Louisiana, B&L,
through its working interest partner Destin Resources, LLC, was the high
bidder on Eugene Island Block 74. BOEM has since awarded this lease which has
added approximately 5,000 gross acres to B&L’s leasehold inventory. B&L holds
a 60% working interest in Eugene Island Block 74 and is currently working with
its partner to further delineate potential drilling targets.

Meanwhile, 2D seismic operations commenced during the third quarter of 2012 on
B&L’s Phoenix Prospect in Union Parish, Louisiana, and the project now is in
the interpretation and mapping phase. B&L and its operating partner, Greystone
Oil & Gas, LLP,  control approximately 7,000 gross acres in Union Parish. The
objective in this prospect is the upper Smackover intervals as well as Lower
Smackover Brown Dense formation.

As previously reported, in addition to the foregoing projects/prospects, B&L
is actively assembling additional prospective acreage on which to explore and
possibly place working interests with third party partners. During the current
period of higher drilling costs, B&L is actively engaged in this strategy of
assembling prospective acreage in an effort to improve drilling and completion
economics and manage risk on a going forward basis.

A reflection of the success of B&L’s strategy is its recent acquisition of
approximately 50 square miles or 30,000 acres of mineral and surface rights in
Calhoun and Victoria County, Texas. This project is identified as B&L’s Lago
Verde 3D Seismic Project. On September 18, 2012 B&L commenced field operations
for the collection of proprietary 3D seismic data over this 50 square mile
area. This focus area is situated in the prolific oil rich leg of the Frio
trend with adjacent fields having produced in excess of 200 million barrels of
oil (MMBO) and 1.8 trillion cubic feet (TCF) of natural gas. The potential
targets are Miocene and Oligocene which are relatively shallow ranging from
3,000 feet to 11,000 feet and are drilled with land rigs. Additionally, there
is extensive pipeline infrastructure in the area. B&L has an 87.5% working
interest in this Lago Verde 3D Seismic Project.

B&L was organized as a limited liability company (LLC) under the laws of
Louisiana in July of 2006. B&L’s Class A members are BLMC and Lake Eugenie
Land & Development, Inc. (LKEU), which have membership percentages of 75% and
25% respectively. The Operating Agreement was amended on November 16, 2009 to
create a Class B membership to allow for certain future projects at the
discretion of the board of managers to be participated by either Class A or
Class B members or a combination of the respective Classes. B&L’s Class B
members are BLMC and LKEU, which have membership percentages of 90% and 10%
respectfully.

William B. Rudolf, President and CEO, commented: “While the price of natural
gas has recovered somewhat from its lows earlier this year, it still has not
reached the level needed to foster interest in drilling for natural gas on our
fee lands. Meanwhile, B&L has successfully acquired key mineral assets
including the approximately 5,000 acre Eugene Island Block 74 and the
approximately 30,000 acre Lago Verde 3D Seismic Project. We are pleased that
McMoRan commenced drilling its Lomond North ultra-deep prospect in September
which is located within MMR’s Highlander area. It is encouraging that MMR has
apparently expanded its Highlander area acreage position from some 68,000
acres to approximately 80,000 gross acres. MMR’s public announcement that it
has identified multiple exploratory prospects in the Highlander area is also
encouraging. All of these events could, in time, represent tremendous value
for B&L. B&L’s success in acquiring these mineral positions in prospective
areas should favorably position B&L for the future and lead to a robust
drilling program during 2013.”

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 land. The Company also derives revenues and
expenses from its ownership interest in B&L Exploration, LLC and 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
managementare 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.






BILOXI MARSH LANDS CORPORATION
Statements of Assets, Liabilities, and Stockholders' Equity
September 30, 2012 and 2011


Assets                                          2012            2011
          
Current assets:
  Cash and cash equivalents                      $ 1,801,553      3,327,573
  Accounts receivable                              17,921         124,833
  Prepaid expenses                                 55,380         59,519
  Accrued interest receivable                      28,681         34,556
  Deferred tax asset                               535,910        476,069
  Federal income taxes receivable                  16,136         87,282
  State income taxes receivable                    18,151         27,861
  Other assets                                    3,830         3,830      
             Total current assets                 2,477,562     4,141,523  
Other assets:
  Investment in partnership                        2,368,910      2,296,094
  Marketable debt and equity securities - at       10,466,966     11,006,055
  cost
  Land                                             234,939        234,939
  Levees and office furniture and equipment        299,574        295,166
  Accumulated depreciation                        (299,574   )   (295,166   )
             Total other assets                   13,070,815    13,537,088 
                                                                  
                 Total assets                    $ 15,548,377    17,678,611 
                                                                             
Liabilities and Stockholders' Equity
Current liabilities:
  Accrued expenses                               $ 5,556          21,944
  Other current liabilities                       4,608         35,313     
                 Total current liabilities         10,164         57,257
Stockholders' equity:
  Common stock, $.001 par value. Authorized,
  20,000,000 shares; issued, 2,851,196 shares;     47,520         47,520
  outstanding, 2,719,178 and 2,738,428 shares
  in 2012 and 2011, respectively
  Retained earnings                                15,899,504     17,806,899
  Treasury stock - 132,018 and 112,768 shares     (408,811   )   (233,065   )
  in 2012 and 2011, respectively, at cost
                 Total liabilities and           $ 15,548,377    17,678,611 
                 stockholders' equity







BILOXI MARSH LANDS CORPORATION
Statements of Revenues and Expenses
September 30, 2012 and 2011
                                                           
                   3 Months Ended                9 Months Ended
                   September 30                  September 30
                   2012           2011           2012           2011
                                                                
Revenues:
Oil and gas        $ 157,696      $ 322,388      $ 390,738      $ 1,229,910
royalties
Severance           (3,981   )   $ (14,756  )    (22,087  )    (53,489    )
taxes
Oil and gas         153,715      307,632      368,651      1,176,421  
royalties, net
                                                                
Other (loss)
income:
Income (loss)
from investment      (121,089 )     (687,747 )     (916,949 )     (2,462,807 )
in partnership
Dividends and        45,454         57,069         131,624        191,487
interest income
Gain on sale of      136,481        58,623         215,316        612,045
securities
Surface              12,175         11,225         12,175         11,225
rentals
Other               5,490        8,281        79,856       18,531     
Total other         78,511       (552,549 )    (477,978 )    (1,629,519 )
(loss) income
Total revenues      232,226      (244,917 )    (109,327 )    (453,098   )
and income
                                                                
Expenses:
Total expenses      194,825      195,300      635,418      769,160    
Net (loss)
income before        37,401         (440,217 )     (744,745 )     (1,222,258 )
income taxes
Income tax
(benefit)           14,691       (264,918 )    (292,536 )    (476,069   )
expense
Net (loss)         $ 22,710       (175,299 )   $ (452,209 )    (746,189   )
income
                                                                
Net (loss)
income per         $ 0.01         $ (0.06    )   $ (0.17    )   $ (0.27      )
share
                                                                
                                                                

Contact:

Biloxi Marsh Lands Corporation
Colleen Starks, 504-837-4337
 
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