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                           BLUE DOLPHIN ENERGY COMPANY


PRESS RELEASE

FOR IMMEDIATE RELEASE
September 18, 2009

BLUE DOLPHIN ENERGY COMPANY RECEIVES NASDAQ DEFICIENCY NOTICE RELATED TO MINIMUM
BID PRICE RULE

Houston,  September 18 / PRNewswire / -- Blue Dolphin  Energy  Company  (NASDAQ:
BDCO) ("Blue  Dolphin"),  an independent  oil and gas company with operations in
the Gulf of Mexico,  today  announced  that on September 16, 2009, it received a
letter from the Listing  Qualifications  Department  of The Nasdaq  Stock Market
confirming that for the previous thirty consecutive  trading days, the bid price
of Blue  Dolphin's  common  stock  closed  below  the  minimum  $1.00  per share
requirement  ("minimum bid  requirement")  for continued listing as set forth in
Marketplace Rule 5550(a)(2).

In accordance with Marketplace Rule 5810(c)(3)(A), Blue Dolphin will be provided
180  calendar  days  ("grace  period"),  or until  March  15,  2010,  to  regain
compliance with the minimum bid  requirement.  If during the grace period,  Blue
Dolphin's  common  stock closes at or above the minimum bid  requirement  for at
least ten consecutive trading days, Blue Dolphin will regain compliance.  During
the grace  period  Blue  Dolphin  will  actively  monitor  the bid  price  while
considering various options to meet Nasdaq's initial listing standards.

Blue Dolphin  Energy Company is engaged in the gathering and  transportation  of
natural gas and  condensate  and in the  production  of oil and gas. For further
information visit the Company's website at http://www.blue-dolphin.com.

Contact:
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Thomas W. Heath
President
713-568-4725

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. Blue Dolphin
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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