Blue Dolphin Energy Company (BDCO)

[56Chevy]

Our discussions are all hypothetical of course and based on things we simply cannot verify ..but your descriptive analysis of refineries in general are all tremendously helpful when attempting to understand what kind of animal the Nixon facility most resembles. That in turn will help us grasp what kind of offers might be made if a refinery such as the BDCO were to be put on the block.

The Nixon Blue Dolphin plant sits on 56 acres and for what its worth an adjoining 50 acres is owned by the parent company of Blue Dolphin.

At this point those adjoining acres are not part of the valuation considerations because Blue Dolphin simply doesn't own them but I can't see how they wouldn't be part of a "deal" if the refinery had to be sold to settle their debt with GEL.

Those adjoining acres would make future expansions for someone interested in owning the refinery very doable. That may or may not mean anything material in our discussion but it does add to the mix of considerations.