Blackwater Midstream Corp.'s Mid-Year Results as of September 30, 2011: Total Revenues Increased by 50%, Gross Profit Increased by 44%, and Net Income Grew by $3 Million

Blackwater Midstream Corp., (OTCBB: BWMS) announces its financial results for the six-month period ended September 30, 2011.

• Total Revenues (storage and ancillary) for the six-month period ended September 30, 2011 increased by 50% over the comparable 2010 six-month period:
  • Six-month period ended September 30, 2010 = $3,076,149
  • Six-month period ended September 30, 2011 = $4,612,859

• Gross Profit for the six-month period ended September 30, 2011 showed a 44% increase over the comparable 2010 six-month period:
  • Six-month period ended September 30, 2010 = $2,146,256
  • Six-month period ended September 30, 2011 = $3,098,007

• Net Income for the six-month period ended September 30, 2011 grew by more than $3 Million over the comparable 2010 six-month period:
  • Six-month period ended September 30, 2010 = $ (171,979)
  • Six-month period ended September 30, 2011 = $2,916,938

• Net Income, excluding non-cash events, for the six-month period ended September 30, 2011 grew by approximately $800,000 or 98% over the comparable 2010 six-month period:
  • Six-month period ended September 30, 2010 = $ 834,250
  • Six-month period ended September 30, 2011 = $1,651,945

Leasable Barrel Utilization went from 82% as of September 30, 2010 - to approximately 95% as of September 30, 2011. This 16% increase takes into account the additional capacity of the Brunswick, GA Terminal acquired in July, 2010.

Michael Suder, CEO, attributed the Company's continued growth and ever-improving financial results to management's focus on increasing storage utilization at its Westwego, LA and Brunswick, GA terminals; expanding the ancillary services offered to existing customers; continuous improvements in its overall operational efficiencies; and decreasing SG&A expenses.

Mr. Suder stated "We have had a tremendous start to the first half of our fiscal year as evidenced by the financial results contained in our 10Q report released and we expect equally strong numbers going forward. Our success is manifested by a simple strategy to grow our business through outstanding customer service, maximizing the utilization of our existing assets, and focusing on acquiring and expanding strategically located, under-performing storage terminals. It has proven to be a winning formula that we intend to continue as indicated by the Company's announcement of its letter of intent to acquire a storage terminal in Salisbury, MD. This acquisition will build asset value for our shareholders and increase our financial results."

Blackwater Midstream Corp. is an independent operator of bulk liquid storage terminals including a storage terminal located within the Port of New Orleans in Westwego, LA and one located in Brunswick, GA. Both terminals have a combined capacity of more than one million barrels and are capable of storing a wide variety of liquid products. The sites offer modal access for product distribution via marine, rail, and truck. The company is a member of the International Liquid Terminals Association.

The information in this press release includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to prospective acquisitions or anticipated future results. Forward-looking statements relate to expectations or forecasts of future events. Blackwater Midstream Corp. does not assume the obligation to update any forward-looking statement. Many factors could cause actual results to differ materially from Blackwater Midstream Corp.'s forward-looking statements, including market forces, economic factors, the availability of capital and credit, current and future competition and other uncertainties.

For further details about these and other factors that may impact the forward-looking statements, see Blackwater Midstream Corp.'s Securities and Exchange Commission filings, including the "Risk Factors" in the Annual Report on Form 10-K. This discussion and analysis should be read in conjunction with our audited financial statements and notes included in our Annual Report on Form 10-K as of and for the year ended March 31, 2011. For more information, please reference our website at www.BlackwaterMidstream.com.