October 14, 2008

Blackwater Midstream Enters into Consulting Agreement With Martyn Lucas

Blackwater Midstream Corp. (OTCBB:BWMS), a developing company in the field of fuel and chemical storage, announced today that it has entered into a commercial consulting agreement with Martyn Lucas.

Mr. Lucas is the former Vice President of Delta Petroleum Co., Inc., New Orleans, Louisiana, one of the largest independent chemical and petroleum toll processors in the United States. For 62 years, Delta Petroleum has provided blending, filling, packaging, drumming, warehousing, distribution and logistical services to a roster of blue-chip companies. During his 28 years with Delta Petroleum, Mr. Lucas was responsible for all sales and marketing activities, as well as General Manager for this multi-site production company, reporting directly to the President and CEO.

During his time with Delta Petroleum, the company constructed a new petroleum and chemical blending/packaging complex in Denver, Colorado, and a state-of-the-art chemical filling operation in Deer Park, Texas.

"We are extremely pleased to have Martyn join our team," said Michael Suder, CEO and Director of Blackwater Midstream. "He brings a wealth of experience and industry knowledge and will play a key role in assisting us expand the book of business at our recently announced pending acquisition of an 850,000 barrel storage facility in the Port of New Orleans."

Prior to Delta Petroleum, Mr. Lucas worked for 10 years at British Petroleum, in London, England.

Mr. Lucas holds a BSc degree in Mechanical Engineering.

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.