4. LE Acquisition (Tables)

12 Months Ended

Dec. 31, 2012

Business Combinations [Abstract]

Provisional price allocation for net assets acquired

The below table summarizes the purchase price allocation of the net assets acquired and measurement period adjustments as of the acquisition date (as adjusted). The estimated fair values of the assets acquired and liabilities assumed were based on information that was available as of the acquisition date. Measurement period adjustments for Blue Dolphin were completed during 2012.

	February 15, 2012		Measurement			Purchase Price Allocation
	As Intially		Period			(As Adjusted)
	Reported		Adjustments			February 15, 2012
Current assets	$	2,466,901	$	-		$	2,466,901
Oil and gas properties		1,503,596		3,639,279			5,142,875
Pipelines		4,466,273		4,757,563			9,223,836
Onshore separation and handling facilities		325,435		-			325,435
Land		473,225		-			473,225
Other property and equipment		282,972		-			282,972
Other long term assets		9,463		-			9,463
Trade name		184,368		118,978			303,346
Goodwill		8,667,401		(7,221,681	)		1,445,720
Total assets acquired		18,379,634		1,294,139			19,673,773
Current liabilities		333,480		-			333,480
Asset retirement obligations		-		1,294,139			1,294,139
Total liabilities assumed		333,480		1,294,139			1,627,619
Net assets acquired	$	18,046,154	$	-		$	18,046,154

Supplemental Pro Forma Information

The following pro forma condensed consolidated statements of operations for the twelve months ended December 31, 2012 and 2011 consolidate the historical consolidated statements of operations of Blue Dolphin and LE giving effect to the LE Acquisition as if it had occurred on January 1, 2011. The unaudited pro forma condensed combined financial statements are presented for illustrative purposes only:

	Twelve Months Ended December 31, 2012
	Historical						Proforma
	Blue Dolphin			LE			Consolidated
REVENUE FROM OPERATIONS
Refined product sales	$	-		$	351,665,234		$	351,665,234
Pipeline operations		446,236			-			446,236
Oil and gas sales		28,957			-			28,957
Total revenue from operations		475,193			351,665,234			352,140,427
COST OF OPERATIONS
Cost of refined products sold		-			342,035,755			342,035,755
Refinery operating expenses		-			8,603,155			8,603,155
Pipeline operating expenses		450,634			-			450,634
Lease operating expenses		66,122			-			66,122
Abandonment expense		1,184,549			-			1,184,549
Depletion, depreciation and amortization		571,164			1,082,124			1,653,288
Impairment of oil and gas properties		9,435,745			-			9,435,745
Bad debt expense		9,508			-			9,508
General and administrative expenses		1,954,196			295,694			2,249,890
Accretion expense		115,812			-			115,812
Gain on sale of property and equipment		-			5,665			5,665
Total cost of operations		13,787,730			352,022,393			365,810,123
Loss from operations		(13,312,537	)		(357,159	)		(13,669,696	)
OTHER INCOME (EXPENSE)
Net tank rental revenue		-			534,047			534,047
Interest and other income		9,720			13,059			22,779
Interest expense		(2,529	)		(952,050	)		(954,579	)
Total other income (expense)		7,191			(404,944	)		(397,753	)
Loss before income taxes		(13,305,346	)		(762,103	)		(14,067,449	)
Income tax expense		(9,678	)		-			(9,678	)
Loss from continuing operations, net of tax		(13,315,024	)		(762,103	)		(14,077,127	)
Loss from discontinued operations, net of tax		(4,445,433	)		-			(4,445,433	)
Net loss	$	(17,760,457	)	$	(762,103	)	$	(18,522,560	)

No columns for adjustments are reflected as there were no adjustments for the periods indicated.

	Twelve Months Ended December 31, 2011
	Historical						Proforma
	Blue Dolphin			LE			Consolidated
REVENUE FROM OPERATIONS
Pipeline operations	$	931,500		$	-		$	931,500
Oil and gas sales		1,342,718			-			1,342,718
Total revenue from operations		2,274,218			-			2,274,218
COST OF OPERATIONS
Pipeline operating expenses		1,008,859			-			1,008,859
Lease operating expenses		1,174,252			-			1,174,252
Depletion, depreciation and amortization		591,927			17,684			609,611
General and administrative expenses		1,574,364			645,444			2,219,808
Accretion expense		131,690			-			131,690
Total cost of operations		4,733,798			663,128			5,396,926
Gain on sale of property and equipment		3,081,053			-			3,081,053
Income (loss) from operations		621,473			(663,128	)		(41,655	)
OTHER INCOME (EXPENSE)
Net tank rental revenue		-			874,421			874,421
Interest and other income		17,383			23,901			41,284
Interest expense		-			(51,340	)		(51,340	)
Total other income		17,383			846,982			864,365
Income before income taxes		638,856			183,854			822,710
Income tax expense		(20,921	)		-			(20,921	)
Net income	$	617,935		$	183,854		$	801,789

No columns for adjustments are reflected as there were no adjustments for the periods indicated.