BLUE DOLPHIN ENERGY COMPANY
NEWS RELEASE
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FOR IMMEDIATE RELEASE November 4, 2002
Houston, Texas - Blue Dolphin Energy Company (NASDAQ Symbol: BDCO)
BLUE DOLPHIN ANNOUNCES THE SALE OF PROVED PROPERTIES
Blue Dolphin Energy Company (the "Company") announced that American Resources
Offshore, Inc., a wholly owned subsidiary of the Company, has sold its' interest
in substantially all of its' oil and natural gas properties for approximately
$2.7 million to Fidelity Exploration & Production Company.
The property interests being sold are located offshore Louisiana and Texas in
the Gulf of Mexico, and include 11 offshore lease blocks with non-operated
interests ranging from 1% to 10%. These properties accounted for approximately
64% of the Company's total net proved reserves on a million cubic feet of gas
equivalent basis, and 63% of the discounted present value of estimated future
net revenues from proved oil and gas reserves at December 31, 2001. Along with a
property that was sold in July 2002, the combined properties sold represented
over 99% of the Company's proved reserves at December 31, 2001. The Company's
remaining oil and gas properties include working interests in 3 leased offshore
prospects and reversionary working interests in 13 offshore lease blocks.
The Company expects to use the sales proceeds for working capital and asset
acquisitions, which may include other oil and gas properties.
Blue Dolphin Energy Company is engaged in oil and gas property acquisition and
development, and the gathering and transportation of natural gas and condensate.
Questions should be directed to Haavard Strommen, Manager of Finance, at the
Company's offices in Houston, Texas, 713-227-7660. For further information see
our Home Page 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 include statements regarding the Company's use of the sales proceeds
from the transaction and 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,
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.
801 Travis o Suite 2100 o Houston, Texas 77002
(713) 227-7660 o FAX (713) 227-7626