Exhibit 99.1

                                  NEWS RELEASE

FOR IMMEDIATE RELEASE                                          February 19, 2002


Houston,  Texas - Blue Dolphin Energy Company (NASDAQ Symbol: BDCO) and American
Resources Offshore, Inc. (OTC Symbol: GASS.OB)


              BLUE DOLPHIN AND AMERICAN RESOURCES CONSUMATE MERGER


Blue Dolphin Energy Company and American Resources Offshore, Inc. announced that
at a special  stockholders  meeting of American  Resources held today,  American
Resources'  stockholders  approved the  agreement  and plan of merger among Blue
Dolphin,  American  Resources  and a wholly owned  subsidiary  of Blue  Dolphin,
whereby American Resources became a wholly owned subsidiary of Blue Dolphin.  As
a result of the merger each issued and outstanding  share of American  Resources
common stock,  other than those shares held by Blue  Dolphin,  were canceled and
converted  into the right to  receive  either  .0362 of a share of Blue  Dolphin
common stock or $.06 in cash and each issued and  outstanding  share of American
Resources preferred stock, other than those held by Blue Dolphin,  were canceled
and converted  into the right to receive either .0301 of a share of Blue Dolphin
common stock or $.07 in cash, at the election of each holder. American Resources
stockholders  who did not make an election for either Blue Dolphin  common stock
or cash by February 18, 2002 will receive Blue Dolphin common stock.

Blue Dolphin Energy Company is engaged in the acquisition and exploration of oil
and gas  properties,  and the  gathering and  transportation  of natural gas and
condensate.  In addition,  the Company actively pursues midstream  projects with
long-term  revenue  potential such as the Sabine Seaport and Petroport  offshore
oil terminal  projects,  the New Avoca natural gas storage project and Drillmar,
Inc. and its  deepwater  semi-tender  assisted  drilling  and well  intervention
solution.  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  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.