Blue Dolphin Energy Company (BDCO) News

HOUSTON, Nov. 14 /PRNewswire-FirstCall/ -- Blue Dolphin Energy Company (Nasdaq: BDCO) ('Blue Dolphin'), an independent oil and gas company with operations in the Gulf of Mexico, today announced financial results for the three and nine month periods ended September 30, 2007.

    For the three months ended September 30, 2007, Blue Dolphin reported a net
loss of $238,148 on revenues of $785,588 compared to net income of $159,930 on
revenues of $1,068,708 for the three months ended September 30, 2006.  The
decline in revenues and net income were primarily due to an anticipated
decline in oil and gas production and resulting sales of approximately
$377,000.



                                      (In thousands, except per share amounts)
                                          Three Months Ended
                                             September 30,         Net Change
                                           2007       2006        2007 vs 2006

    Revenues                               $786     $1,069          $ (283)
    Net income (loss)                     $(238)     $ 160          $ (398)
    Net income (loss) per common share
      Basic                              $(0.02)     $0.01          $(0.03)
      Diluted                            $(0.02)     $0.01          $(0.03)

For the nine months ended September 30, 2007, Blue Dolphin reported a net loss of $1,341,821 on revenues of $2,261,511, compared to net income of $364,990 on revenues of $3,255,801 for the nine months ended September 30, 2006. The loss for the first three quarters of 2007 was primarily due to reduced revenues from sales of oil and gas of approximately $1,460,000 resulting from an anticipated decline in production levels, and increased pipeline operating expenses of approximately $598,000, partially offset by increased revenues from pipeline operations of approximately $466,000. Increased pipeline operating expenses were primarily the result of unanticipated costs associated with repairs to pipeline assets and increased insurance costs. Increased revenues from pipeline operations were the result of increased throughput from the addition of seven shippers on the Blue Dolphin System and the GA 350 Pipeline, and increased throughput from two existing shippers on the Blue Dolphin System during 2006 and 2007.

                                      (In thousands, except per share amounts)
                                          Nine Months Ended
                                            September 30,          Net Change
                                          2007       2006         2007 vs 2006

    Revenues                             $2,262     $3,256          $ (994)
    Net income (loss)                   $(1,342)     $ 365         $(1,707)
    Net income (loss) per common share
      Basic                              $(0.12)     $0.03          $(0.15)
      Diluted                            $(0.12)     $0.03          $(0.15)

There are currently 11,573,293 shares of common stock issued and outstanding.

Blue Dolphin Energy Company is engaged in the gathering and transportation of natural gas and condensate and production of oil and gas. For further information visit the Company's website at http://www.blue-dolphin.com.

Certain of the statements included in this press release, which express a belief, expectation or intention, as well as those regarding future financial performance or results, or which are not historical facts, are 'forward-looking' statements as that term is defined in the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. The words 'expect', 'plan', 'believe', 'anticipate', 'project', 'estimate', and similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance or events and such statements involve a number of risks, uncertainties and assumptions, including but not limited to industry conditions, prices of crude oil and natural gas, regulatory changes, general economic conditions, interest rates, competition, and other factors. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, actual results and outcomes may differ materially from those indicated in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

SOURCE Blue Dolphin Energy Company