SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------------------
FORM 8-K/A-3
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities and Exchange Act of 1934
Date of Report: (Date of earliest event reported): June 5, 2000 (Dec 2, 1999)
BLUE DOLPHIN ENERGY COMPANY
(Exact name of registrant as specified in its charter)
DELAWARE 0-15905 73-1268729
(State of Incorporation) (Commission File Number) (IRS Employer
Identification No.)
801 TRAVIS, SUITE 2100
HOUSTON, TEXAS 77002
(Address of Registrant's principal executive offices)
(713) 227-7660
(Registrant's telephone number, including area code)
(NOT APPLICABLE)
(Former name or former address, if changed since last report)
<PAGE>
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Pro Forma Information
The Form 8-K/A-3 amends the Form 8-K filed by Blue Dolphin Energy Company,
a Delaware corporation (the "Company"), filed on December 17, 1999 and is filed
to update the pro forma financial information included the Company's Form
8-K/A-2 filed on February 16, 2000.
BLUE DOLPHIN ENERGY COMPANY AND SUBSIDIARIES
Introduction
The following unaudited pro forma condensed financial statement for Blue
Dolphin Energy Company (the "Company") give effect to (i) the purchase of a 75%
ownership interest in American Resources Offshore Inc. ("ARO"), (ii) the private
placement of 1,016,718 shares of the Company's $.01 par value common stock and
(iii) the issuance of a $1,000,000 convertible promissory note due June 1, 2000.
The pro forma financial information is presented for illustrative purposes
only and does not purport to represent what the Company's results actually would
have been if such events had occurred at the dates indicated, nor does such
information purport to project the results of operations for any future period
or as of any future date. The pro forma condensed financial information should
be read in conjunction with the notes thereto together with the Company's
financial statements and the notes thereto, and "Management's Discussion and
Analysis of Financial Condition and Results of Operations," all appearing in the
Company's Report on Form 10-K for the year ended December 31, 1999, and in the
Company's report on Form 10-Q for the quarter ended March 31, 2000.
The unaudited Pro Forma Condensed Statement of Operations for the three
months ended March 31, 1999 assumed that the transactions were effected on
January 1, 1999.
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BLUE DOLPHIN ENERGY COMPANY AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
ADJUSTMENTS
--------------------------------------------------------
UNAUDITED DEBIT CREDIT PRO FORMA
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Revenue from operations:
Pipeline operations .......................................... $ 435,855 435,855
Oil and gas sales and operating fees ......................... 148,587 1,249,105 1,397,692
Management fees .............................................. 70,425 70,425
----------- -----------
Revenue from operations ................................ 654,867 1,903,972
----------- -----------
Cost of operations:
Pipeline operating expenses .................................. 209,493 209,494
Lease operating expenses ..................................... 296,504 199,270 495,774
Depletion, depreciation and amortization ..................... 101,107 732,548 833,655
General and administrative expenses .......................... 547,733 121,000 668,733
----------- -----------
Cost of operations ..................................... 1,154,837 2,207,656
----------- -----------
Income (loss) from operations .......................... (499,970) (303,684)
Other income (expense):
Interest expense ............................................. (59,318) (59,318)
Gain on sale of assets ....................................... 2,068,986 2,068,986
Interest and other income .................................... 13,660 1,986 15,646
----------- -----------
Income before income taxes and cumulative
effect of a change in an accounting principle .......... 1,523,358 1,721,630
Minority interest ............................................... (49,568) (49,568)
Provision for income taxes ...................................... (518,191) (50,559) (568,750)
----------- -----------
Income before cumulative effect of a
change in an accounting principle ...................... 1,005,167 1,103,312
Cummulative effect at January 1, 1999 of a change in
accounting principle for start up cost, net of income tax
benefit of $41,480 .............................................. (80,334) (80,334)
----------- -----------
Net income ...................................................... $ 924,833 1,022,978
=========== ===========
Earnings per common share-basic:
Income before accounting change ............................. $ 0.22 0.24
Cumulative effect of a change in accounting principle ....... (0.02) (0.02)
----------- -----------
Net income .................................................. $ 0.20 0.23
=========== ===========
Earnings per common share-diluted:
Income before accounting change ............................. $ 0.22 0.24
Cumulative effect of a change in accounting principle ....... (0.02) (0.02)
----------- -----------
Net income .................................................. $ 0.20 0.23
=========== ===========
Earnings (loss) per share:
Weighted average number of common shares outstanding and dilutive potential
common shares:
Basic ...................................................... 4,517,960 4,517,960
=========== ===========
Diluted .................................................... 4,544,895 4,544,895
=========== ===========
</TABLE>
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<PAGE>
BLUE DOLPHIN ENERGY COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31
<TABLE>
<CAPTION>
2000 1999
UNAUDITED PRO FORMA
----------- -----------
<S> <C> <C>
Revenue from operations:
Pipeline operations ................................................................... $ 470,846 435,855
Oil and gas sales and operating fees .................................................. 1,113,935 1,397,692
Management fees ....................................................................... 203,850 70,425
----------- -----------
Revenue from operations ......................................................... 1,788,631 1,833,547
----------- -----------
Cost of operations:
Pipeline operating expenses ........................................................... 240,993 209,494
Lease operating expenses .............................................................. 283,588 495,774
Depletion, depreciation and amortization .............................................. 456,270 833,655
General and administrative expenses ................................................... 702,385 598,308
----------- -----------
Cost of operations .............................................................. 1,683,236 2,137,231
----------- -----------
Income (loss) from operations ................................................... 105,395 (303,684)
Other income (expense):
Interest expense ...................................................................... (23,895) (59,318)
Gain on sale of assets ................................................................ -- 2,068,986
Interest and other income ............................................................. 3,124 15,646
----------- -----------
Income before income taxes and cumulative
effect of a change in an accounting principle ................................... 84,624 1,721,630
Minority interest ........................................................................ (31,786) (49,568)
Provision for income taxes ............................................................... -- (568,750)
----------- -----------
Income before cumulative effect of a
change in an accounting principle ............................................... 52,838 1,103,312
----------- -----------
Cummulative effect at January 1, 1999 of a change in
accounting principle for start up cost, net of income tax
benefit of $41,480 ....................................................................... -- (80,334)
----------- -----------
Net income ............................................................................... $ 52,838 1,022,978
=========== ===========
Earnings per common share-basic:
Income before accounting change ...................................................... $ 0.01 0.24
Cumulative effect of a change in accounting principle ................................ -- (0.02)
----------- -----------
Net income ........................................................................... $ 0.01 0.23
=========== ===========
Earnings per common share-diluted:
Income before accounting change ...................................................... $ 0.01 0.24
Cumulative effect of a change in accounting principle ................................ -- (0.02)
----------- -----------
Net income ........................................................................... $ 0.01 0.23
=========== ===========
Earnings (loss) per share:
Weighted average number of common shares outstanding and dilutive potential
common shares:
Basic ............................................................................... 5,950,880 4,517,960
=========== ===========
Diluted ............................................................................. 6,020,721 4,544,895
=========== ===========
</TABLE>
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<PAGE>
BLUE DOLPHIN ENERGY COMPANY AND SUBSIDIARIES
NOTES TO PRO FORMA CONDENSED FINANCIAL STATEMENTS
(1) The Company purchased a 75% ownership interest in ARO for approximately
$4,500,000.
(2) The Company completed a $7,100,000 private placement consisting of
1,016,718 shares of its common stock and $1,000,000 convertible
promissory note, to fund the acquisition of ARO. Approximately
$1,900,000 of the private placement was provided by the holders of the
Company's promissory notes due December 31, 2000, tendering their
promissory notes in exchange for common stock. The common stock was
sold at $6.00 per share.
(3) Revenues and expense associated with ARO are based on the Pro Forma
Financial Statements prepared by ARO for the periods presented
(4) The general and administrative expenses reported by ARO reflects the
payment by ARO to a wholly owned subsidiary of the Company of $83,333 per
month for management and administrative services. The $250,000 is
eliminated from the Company's Pro Forma Statement of Operations for the
three months ended March 31, 1999.
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<PAGE>
(b) Exhibits
99.1* Investment Agreement, as amended, by and between American
Resources Offshore, Inc. and Blue Dolphin Exploration Company.
99.2* The financial statements contained in American Resources
Offshore, Inc.'s Annual Report on Form 10-K for the year ended
December 31, 1998 filed with the Securities and Exchange
Commission (the "SEC") on April 16, 1999 and Quarterly Report
on Form 10-Q for the quarter ended September 30, 1999 filed
with the SEC on November 15, 1999.
* Previously filed.
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<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
BLUE DOLPHIN ENERGY COMPANY
Date: June 5, 2000 By: /S/ G. BRIAN LLOYD
----------------------------------
G. Brian Lloyd
Vice President, Treasurer
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<PAGE>
INDEX TO EXHIBITS
EXHIBIT DESCRIPTION OF EXHIBIT
99.1* Investment Agreement, as amended, by and between
American Resources Offshore, Inc. and Blue Dolphin
Exploration Company (incorporated by reference from the
Company's Schedule 13D filed with the Securities and
Exchange Commission on October 22, 1999).
99.2* The financial statements contained in American Resources
Offshore, Inc.'s Annual Report on Form 10-K for the year
ended December 31, 1998 filed with the Securities and
Exchange Commission (the "SEC") on April 16, 1999 and
Quarterly Report on Form 10-Q for the quarter ended
September 30, 1999 filed with the SEC on November 15,
1999.
*Previously filed.
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