Blue Dolphin Energy Co. has signed a definitive agreement to acquire the Nixon Crude Processing Facility (Nixon Facility) from a privately held company in an all-stock transaction. Located on the border between Gonzales and Wilson Counties in Nixon, Texas, the 56 acre Nixon Facility has a near term processing capacity of 15,000 barrels per day with a storage capacity of 295,000 barrels and, a low operating cost. It is currently in the final phase of refurbishment with an anticipated restart by the fourth quarter of 2011. Upon completion, the facility will separate input crude oil and condensate into diesel and jet fuel for sale into nearby markets, in addition to naphtha and atmospheric gasoil for sale to nearby refineries for further processing. Initial throughput is estimated at around 10,000 barrels per day. Closing of the transaction is subject to completion of a non-recourse financing to complete refurbishment of the Nixon Facility and approval by Blue Dolphin’s stockholders.