Blue Dolphin Sells Gulf of Mexico Assets
Blue Dolphin Energy's subsidiary American Resources Offshore has sold its interest in substantially all of its oil and natural gas properties for approximately $2.7 million to Fidelity Exploration & Production Company.
The property interests being sold are located offshore Louisiana and Texas in the Gulf of Mexico, and include 11 offshore lease blocks with non-operated interests ranging from 1% to 10%. These properties accounted for approximately 64% of the Company's total net proved reserves on a million cubic feet of gas equivalent basis, and 63% of the discounted present value of estimated future net revenues from proved oil and gas reserves at December 31, 2001. Along with a property that was sold in July 2002, the combined properties sold represented over 99% of the Company's proved reserves at December 31, 2001. The Company's remaining oil and gas properties include working interests in 3 leased offshore prospects and reversionary working interests in 13 offshore lease blocks.
The Company expects to use the sales proceeds for working capital and asset acquisitions, which may include other oil and gas properties.