HOUSTON, TX / ACCESSWIRE / August 15, 2017 /Blue Dolphin Energy Company ("Blue Dolphin") (OTCQX: BDCO), an independent refiner and marketer of refined petroleum products in the Eagle Ford Shale, today announced an unfavorable outcome in the arbitration proceedings between Lazarus Energy, LLC ("LE"), a wholly owned subsidiary of Blue Dolphin, and GEL Tex Marketing, LLC ("GEL"), an affiliate of Genesis Energy, LP.
As previously disclosed, LE has been involved in arbitration proceedings (the "GEL Arbitration") with GEL related to a contractual dispute involving a Crude Oil Supply and Throughput Services Agreement and a Joint Marketing Agreement between the parties. On August 11, 2017, the arbitrator delivered its final award in the GEL Arbitration (the "Final Arbitration Award").
The Final Arbitration Award denied all of LE's claims against GEL and granted substantially all of the relief requested by GEL in its counterclaims. Among other matters, the Final Arbitration Award awarded damages, legal and administrative fees, and court costs to GEL by LE in the aggregate amount of approximately $31.3 million.
Blue Dolphin's primary operating asset is a 15,000-bpd crude oil and condensate processing facility located in Nixon, Texas (the "Nixon Facility"). The Nixon Facility is owned by LE. Blue Dolphin is currently evaluating the effects of the Final Arbitration Award on its business, financial condition, and results of operations, which effects may be material and adverse. Additional information regarding the Final Arbitration Award and its effects will be included in Blue Dolphin's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2017 (the "Quarterly Report"). Filing of the Quarterly Report has been delayed as a result of the Final Arbitration Award.
This press release contains forward-looking statements. You can generally identify forward-looking statements by our use of forward-looking terminology such as "outlook," "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "seek," "should," or "will," or the negative thereof or other variations thereon or comparable terminology. These forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. For a discussion of risk factors which may affect our results, please see the risk factors and other disclosures included in our most recent Annual Report on Form 10-K, any subsequently filed Quarterly Reports on Form 10-Q, and our other Securities and Exchange Commission filings. These risks may cause our actual results, performance, or achievements to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof. Blue Dolphin disclaims any intention or obligation to update publicly or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.
About Blue Dolphin
Blue Dolphin Energy Company (OTCQX: BDCO) is an independent refiner and marketer of refined petroleum products in the Eagle Ford Shale. Blue Dolphin's primary business is refinery operations at the 15,000 bpd Nixon Facility, which includes the refining of crude oil and condensate into marketable finished and intermediate products, as well as petroleum storage and terminaling. Blue Dolphin also owns pipeline assets and has leasehold interests in oil and gas properties. For additional information, visit Blue Dolphin's corporate website at http://www.blue-dolphin-energy.com.
Jonathan P. Carroll
Chief Executive Officer and President
SOURCE:Blue Dolphin Energy Company
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