EXHIBIT 99.1


PRESS RELEASE

FOR IMMEDIATE RELEASE
December 3, 2007

BLUE DOLPHIN ENERGY COMPANY ANNOUNCES  INITIAL  PRODUCTION FROM HIGH ISLAND AREA
WELL

Houston,  December 3 / PRNewswire / -- Blue Dolphin Energy Company (NASDAQ:BDCO)
("Blue  Dolphin") today  announced that production  commenced in the High Island
Block 115  sidetrack  2 well on November  26,  2007.  As the Company  previously
reported,  it had earned a 2.5%  working  interest in the well.  The interest is
held by its  wholly  owned  subsidiary,  Blue  Dolphin  Petroleum  Company.  The
operator reports that the well is currently flowing at a rate of approximately 9
million cubic feet of gas per day with a 10,500 psi flowing tubing  pressure and
an 11,010 psi shut-in tubing  pressure.  The well is a sidetrack of the original
B-1 wellbore in the block. As the well has recently  commenced  production,  the
production  level  has not yet  stabilized.  There  will be  adjustments  to the
production  rate after a sustained  steady flow has been  achieved.  The Company
will issue  further  information  as  operations  progress.  Blue  Dolphin's net
revenue interest in the well is 2.008%.

Blue  Dolphin  Energy  Company  is an  independent  oil  and  gas  company  with
operations  in the  Gulf of  Mexico,  engaged  primarily  in the  gathering  and
transportation  of natural gas and condensate and production of oil and gas. For
further information visit the Company's website at http://www.blue-dolphin.com.
                                                   ---------------------------
Contact:
--------
Gregory W. Starks
Vice President, Treasurer and Secretary
713-227-7660

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.

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