EXHIBIT 99.1
NEWS RELEASE
------------
FOR IMMEDIATE RELEASE October 31, 2005
Houston, Texas - Blue Dolphin Energy Company (NASDAQ Symbol: BDCO)
BLUE DOLPHIN ENERGY ANNOUNCES RESTATEMENT OF FIRST AND SECOND QUARTER FINANCIALS
AND OTHER SIGNIFICANT EVENTS
Blue Dolphin Energy Company, Inc., a Delaware corporation (the "Company") will
be filing amendments to its Forms 10-QSB for the first and second quarters of
2005 to recognize non-cash compensation expense pursuant to Financial Accounting
Standards Board Interpretation No. 44 "Accounting for Certain Transactions
involving Stock Compensation - An Interpretation of APB Opinion No. 25." The
Company's previously issued financial statements for the quarterly periods ended
March 31, 2005 and June 30, 2005 should no longer be relied on because they do
not reflect such non-cash compensation expense.
The Company expects to recognize additional non-cash compensation expense for
the six months ended June 30, 2005 of $686,000, or $0.09 per share. Recognition
of this expense will increase Additional Paid in Capital by an equivalent
amount. There will be no liability to the Company recognized as a result of this
additional expense. The Company expects the additional non-cash compensation
expense to increase the net loss for the first quarter of 2005 by approximately
$533,000, or $0.07 per share. Additional non-cash compensation expense
recognized in the second quarter of 2005 is expected to be approximately
$153,000, or $0.02 per share.
The Company also announces that it has received cash payments totaling
$1,383,247 for production from July 1, 2004 through June 2005 from its
after-payout working interest in High Island Block 37. There are two wells
currently producing in the block at a combined rate of approximately 25 MMcf per
day. The Company has a working interest of approximately 2.7% in the wells.
Additionally, production from the Company's working interest in High Island
Block A-7 has increased significantly following the successful re-completion of
two wells in August 2005. These wells are currently shut-in awaiting the
resumption of 3rd party transportation services.
Blue Dolphin Energy Company is engaged in the gathering and transportation of
natural gas and condensate. Questions should be directed to Gregory W. Starks,
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, 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, 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.