Blue Dolphin Receives Nasdaq Deficiency Letter Related to Stockholders' Equity

Blue Dolphin Energy Company

announced today that on May 27, 2011, the Company was notified by the Nasdaq's Listing Qualifications Department that its stockholders' equity had fallen below the minimum requirement for continued listing as set forth in Marketplace Rule 5550(b).  Blue Dolphin submitted a plan to regain compliance to a Nasdaq Hearings Panel on May 31, 2011.   Blue Dolphin Energy Company is engaged in the gathering and transportation, as well as the exploration and production, of oil and natural gas in the U.S. Gulf of Mexico and the North Sumatra Basin in offshore Indonesia. For further information visit the Company's website at http://www.blue-dolphin.com .