Blackwater Midstream Corp.’s 1st Quarter 2010 Results: Storage Revenues Increased by 78%, Monthly Average Gross Profit Increased by 129%, Capacity Utilization Increased by 102%

Blackwater Midstream Corp., (OTCBB: BWMS) announces results for its quarter ended June 30, 2010.

• Storage revenues were up by 78% over the comparable 2009 period, $1,250,000 for 2010 versus $701,000 for 2009.
• Monthly Average Gross Profit showed a 129% increase.
• Leased Barrel Utilzation went from 38% as of December 2008 to 77% as of June 2010.
• BWMS went from a loss for the quarter ended June 2009 of $1,125,000 to a gain of $112,000 for the quarter ended June 2010, a $1,237,000 improvement from the comparable quarter.

Michael Suder, CEO, attributed the significantly improved results to more tank capacity due to expansion within our fence line; additional blue chip customers; favorable, long-term, contractual rates; and overall greater capacity utilization.

Mr. Suder stated, "We are in an industry where demand outstrips supply. As an independent developer, manager, and third party provider of bulk liquid storage terminals, we take no commodity price risk and we enjoy generous profit margins. There is a high degree of predictability in our numbers.

"Our major asset is our on-hands management team, as we have a highly efficient, industry seasoned management team with a long history of success. We have built and operated successful and profitable storage terminals before and with BWMS, we are doing it again.

"An example is our Westwego, LA facility. It was purchased in December 2008 for $4.8 Million, independently appraised then for $6.6 Million. Since December 2008 we have added 150,000 barrels of capacity, a ship dock for ocean going vessels and other capital improvements. We are currently in the planning and pre-construction of Phase II, which will add 400,000 barrels of additional capacity. Just this month the facility was appraised at a value of $38 Million, anticipating the completion of the Phase II tanks, almost a five-fold increase in value in twenty months.

"Today, BWMS has two terminals, Westwego, LA and Brunswick, GA; but our vision is much larger. Our vision and strategy is for a continuing program of acquiring under-achieving, under-utilized storage terminals, and applying our proven formula to replicate many times over the results achieved at the Westwego, LA Terminal.

"We have the management and corporate infrastructure in place to both create increasing revenues and profits and at the same time build major asset value for our shareholders.

"We are a young company but with seasoned management, with the goal to become an important industry player."

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 does not assume the obligation to update any forward-looking statement. Many factors could cause actual results to differ materially from Blackwater Midstream’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’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 unaudited consolidated financial statements and related notes included in our Quarterly Report on Form 10-Q as of June 30, 2010 and our audited financial statements and notes included in our Annual Report on Form 10-K as of and for the year ended March 31, 2010. For more information, please reference our website at www.BlackwaterMidstream.com