SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 -------------------------- FORM 8-K/A-3 CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934 Date of Report: (Date of earliest event reported): June 5, 2000 (Dec 2, 1999) BLUE DOLPHIN ENERGY COMPANY (Exact name of registrant as specified in its charter) DELAWARE 0-15905 73-1268729 (State of Incorporation) (Commission File Number) (IRS Employer Identification No.) 801 TRAVIS, SUITE 2100 HOUSTON, TEXAS 77002 (Address of Registrant's principal executive offices) (713) 227-7660 (Registrant's telephone number, including area code) (NOT APPLICABLE) (Former name or former address, if changed since last report) ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (a) Pro Forma Information The Form 8-K/A-3 amends the Form 8-K filed by Blue Dolphin Energy Company, a Delaware corporation (the "Company"), filed on December 17, 1999 and is filed to update the pro forma financial information included the Company's Form 8-K/A-2 filed on February 16, 2000. BLUE DOLPHIN ENERGY COMPANY AND SUBSIDIARIES Introduction The following unaudited pro forma condensed financial statement for Blue Dolphin Energy Company (the "Company") give effect to (i) the purchase of a 75% ownership interest in American Resources Offshore Inc. ("ARO"), (ii) the private placement of 1,016,718 shares of the Company's $.01 par value common stock and (iii) the issuance of a $1,000,000 convertible promissory note due June 1, 2000. The pro forma financial information is presented for illustrative purposes only and does not purport to represent what the Company's results actually would have been if such events had occurred at the dates indicated, nor does such information purport to project the results of operations for any future period or as of any future date. The pro forma condensed financial information should be read in conjunction with the notes thereto together with the Company's financial statements and the notes thereto, and "Management's Discussion and Analysis of Financial Condition and Results of Operations," all appearing in the Company's Report on Form 10-K for the year ended December 31, 1999, and in the Company's report on Form 10-Q for the quarter ended March 31, 2000. The unaudited Pro Forma Condensed Statement of Operations for the three months ended March 31, 1999 assumed that the transactions were effected on January 1, 1999. 2 BLUE DOLPHIN ENERGY COMPANY AND SUBSIDIARIES PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS THREE MONTHS ENDED MARCH 31, 1999 ADJUSTMENTS -------------------------------------------------------- UNAUDITED DEBIT CREDIT PRO FORMA ----------- ----------- ----------- ----------- Revenue from operations: Pipeline operations .......................................... $ 435,855 435,855 Oil and gas sales and operating fees ......................... 148,587 1,249,105 1,397,692 Management fees .............................................. 70,425 70,425 ----------- ----------- Revenue from operations ................................ 654,867 1,903,972 ----------- ----------- Cost of operations: Pipeline operating expenses .................................. 209,493 209,494 Lease operating expenses ..................................... 296,504 199,270 495,774 Depletion, depreciation and amortization ..................... 101,107 732,548 833,655 General and administrative expenses .......................... 547,733 121,000 668,733 ----------- ----------- Cost of operations ..................................... 1,154,837 2,207,656 ----------- ----------- Income (loss) from operations .......................... (499,970) (303,684) Other income (expense): Interest expense ............................................. (59,318) (59,318) Gain on sale of assets ....................................... 2,068,986 2,068,986 Interest and other income .................................... 13,660 1,986 15,646 ----------- ----------- Income before income taxes and cumulative effect of a change in an accounting principle .......... 1,523,358 1,721,630 Minority interest ............................................... (49,568) (49,568) Provision for income taxes ...................................... (518,191) (50,559) (568,750) ----------- ----------- Income before cumulative effect of a change in an accounting principle ...................... 1,005,167 1,103,312 Cummulative effect at January 1, 1999 of a change in accounting principle for start up cost, net of income tax benefit of $41,480 .............................................. (80,334) (80,334) ----------- ----------- Net income ...................................................... $ 924,833 1,022,978 =========== =========== Earnings per common share-basic: Income before accounting change ............................. $ 0.22 0.24 Cumulative effect of a change in accounting principle ....... (0.02) (0.02) ----------- ----------- Net income .................................................. $ 0.20 0.23 =========== =========== Earnings per common share-diluted: Income before accounting change ............................. $ 0.22 0.24 Cumulative effect of a change in accounting principle ....... (0.02) (0.02) ----------- ----------- Net income .................................................. $ 0.20 0.23 =========== =========== Earnings (loss) per share: Weighted average number of common shares outstanding and dilutive potential common shares: Basic ...................................................... 4,517,960 4,517,960 =========== =========== Diluted .................................................... 4,544,895 4,544,895 =========== =========== 3 BLUE DOLPHIN ENERGY COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS THREE MONTHS ENDED MARCH 31 2000 1999 UNAUDITED PRO FORMA ----------- ----------- Revenue from operations: Pipeline operations ................................................................... $ 470,846 435,855 Oil and gas sales and operating fees .................................................. 1,113,935 1,397,692 Management fees ....................................................................... 203,850 70,425 ----------- ----------- Revenue from operations ......................................................... 1,788,631 1,833,547 ----------- ----------- Cost of operations: Pipeline operating expenses ........................................................... 240,993 209,494 Lease operating expenses .............................................................. 283,588 495,774 Depletion, depreciation and amortization .............................................. 456,270 833,655 General and administrative expenses ................................................... 702,385 598,308 ----------- ----------- Cost of operations .............................................................. 1,683,236 2,137,231 ----------- ----------- Income (loss) from operations ................................................... 105,395 (303,684) Other income (expense): Interest expense ...................................................................... (23,895) (59,318) Gain on sale of assets ................................................................ -- 2,068,986 Interest and other income ............................................................. 3,124 15,646 ----------- ----------- Income before income taxes and cumulative effect of a change in an accounting principle ................................... 84,624 1,721,630 Minority interest ........................................................................ (31,786) (49,568) Provision for income taxes ............................................................... -- (568,750) ----------- ----------- Income before cumulative effect of a change in an accounting principle ............................................... 52,838 1,103,312 ----------- ----------- Cummulative effect at January 1, 1999 of a change in accounting principle for start up cost, net of income tax benefit of $41,480 ....................................................................... -- (80,334) ----------- ----------- Net income ............................................................................... $ 52,838 1,022,978 =========== =========== Earnings per common share-basic: Income before accounting change ...................................................... $ 0.01 0.24 Cumulative effect of a change in accounting principle ................................ -- (0.02) ----------- ----------- Net income ........................................................................... $ 0.01 0.23 =========== =========== Earnings per common share-diluted: Income before accounting change ...................................................... $ 0.01 0.24 Cumulative effect of a change in accounting principle ................................ -- (0.02) ----------- ----------- Net income ........................................................................... $ 0.01 0.23 =========== =========== Earnings (loss) per share: Weighted average number of common shares outstanding and dilutive potential common shares: Basic ............................................................................... 5,950,880 4,517,960 =========== =========== Diluted ............................................................................. 6,020,721 4,544,895 =========== =========== 4 BLUE DOLPHIN ENERGY COMPANY AND SUBSIDIARIES NOTES TO PRO FORMA CONDENSED FINANCIAL STATEMENTS (1) The Company purchased a 75% ownership interest in ARO for approximately $4,500,000. (2) The Company completed a $7,100,000 private placement consisting of 1,016,718 shares of its common stock and $1,000,000 convertible promissory note, to fund the acquisition of ARO. Approximately $1,900,000 of the private placement was provided by the holders of the Company's promissory notes due December 31, 2000, tendering their promissory notes in exchange for common stock. The common stock was sold at $6.00 per share. (3) Revenues and expense associated with ARO are based on the Pro Forma Financial Statements prepared by ARO for the periods presented (4) The general and administrative expenses reported by ARO reflects the payment by ARO to a wholly owned subsidiary of the Company of $83,333 per month for management and administrative services. The $250,000 is eliminated from the Company's Pro Forma Statement of Operations for the three months ended March 31, 1999. 5 (b) Exhibits 99.1* Investment Agreement, as amended, by and between American Resources Offshore, Inc. and Blue Dolphin Exploration Company. 99.2* The financial statements contained in American Resources Offshore, Inc.'s Annual Report on Form 10-K for the year ended December 31, 1998 filed with the Securities and Exchange Commission (the "SEC") on April 16, 1999 and Quarterly Report on Form 10-Q for the quarter ended September 30, 1999 filed with the SEC on November 15, 1999. * Previously filed. 6 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. BLUE DOLPHIN ENERGY COMPANY Date: June 5, 2000 By: /S/ G. BRIAN LLOYD ---------------------------------- G. Brian Lloyd Vice President, Treasurer 7 INDEX TO EXHIBITS EXHIBIT DESCRIPTION OF EXHIBIT 99.1* Investment Agreement, as amended, by and between American Resources Offshore, Inc. and Blue Dolphin Exploration Company (incorporated by reference from the Company's Schedule 13D filed with the Securities and Exchange Commission on October 22, 1999). 99.2* The financial statements contained in American Resources Offshore, Inc.'s Annual Report on Form 10-K for the year ended December 31, 1998 filed with the Securities and Exchange Commission (the "SEC") on April 16, 1999 and Quarterly Report on Form 10-Q for the quarter ended September 30, 1999 filed with the SEC on November 15, 1999. *Previously filed. 8