Blue Dolphin Energy Announces Lease Extension in Houston

Blue Dolphin Energy Company (OTCMKTS:BDCO) recently disclosed in an 8-K SEC filing that its subsidiary, Blue Dolphin Services Co. (BDSC), has finalized a lease extension agreement in Houston, Texas. The lease extension comes after the expiry of the fifth amendment to the office lease between BDSC and TR 801 Travis LLC on August 31, 2024.

The new agreement, termed as the sixth amendment, was signed on October 30, 2024, with an effective date of September 1, 2024. Under this extension, the lease covers a 24-month period. The initial two months (September and October 2024) represent the holdover period during which negotiations with the lessor were conducted. During this period, BDSC continued at the expiring rate of $30.00 per square foot as per the fifth amendment to the office lease.

Moving forward, from months 3 to 12, beginning on November 1, 2024, the lessor has agreed to reduce the annual base rent to $29.00 per square foot. Subsequently, for months 13 to 24, the annual base rent will revert to $30.00 per square foot. Additionally, BDSC will be responsible for a proportionate share of basic building costs, including utilities, up to a maximum of $1,500 per month.

Moreover, under the terms of the new lease extension, BDSC will also benefit from an improvement allowance of $1.50 per square foot. This allowance, however, has a six-month expiration from the date of lease signing. The total rental area covered under the sixth amendment amounts to 9,961 square feet, reflecting an increase of 2,268 square feet to accommodate additional personnel.

The agreement was officially filed as an exhibit (10.1) alongside the 8-K filing. The company aims to enhance its operational efficiency through these strategic real estate decisions.

This recent development underscores Blue Dolphin Energy’s commitment to optimizing its resources and securing adequate facilities for its operations in Houston. Investors and stakeholders are advised to stay updated on further developments related to the company’s real estate strategy.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Blue Dolphin Energy’s 8K filing here.

Blue Dolphin Energy Company Profile

Blue Dolphin Energy Company, an independent downstream energy company, engages in the refining and marketing of petroleum products in the United States. It operates through two segments, Refinery Operations, and Tolling and Terminaling. The company produces finished products, including jet fuel, as well as various intermediate products, such as naphtha, heavy oil mud blendstock, and atmospheric gas oil; and conducts tolling and terminaling services at the Nixon facility.