Knight Warrior LLC Moving Forward with 160-Mile Pipeline Project to Serve Eaglebine Crude Producers

Knight Warrior LLC, a Texas limited liability company, today announced that it has reached several key milestones and is moving forward with its 160-mile pipeline. The pipeline, which will link the emerging East Texas Eaglebine/Woodbine crude oil resource play to the Houston refining and export markets, is scheduled for startup in the second quarter of 2016. The project is backed by shipper commitments, including a transportation agreement with Vitol, a diversified multinational energy company, and SEI Energy, LLC, a natural gas and crude oil marketer/producer services company with offices in Tennessee, Texas, Virginia and Oklahoma.

Knight Warrior also announced it has awarded contracts to Hatch Mott MacDonald, LLC, Contract Land Staff LLC and Apex TITAN, Inc. for engineering and design, land management and environmental services, respectively.

Knight Warrior has assembled a team of industry veterans led by Fred Brown, senior project manager, to manage construction of the pipeline. Mr. Brown, who has more than three decades of pipeline experience in the energy and mining industries, is knowledgeable in all aspects of pipeline projects from FEED studies to construction feasibility, route selection, project management, construction techniques and implementation. Mr. Brown will be responsible for overseeing all aspects of the Knight Warrior project.

Previously, Mr. Brown has worked on major pipeline projects throughout the U.S., Asia and South America including the feasibility study, route design and construction of the Gas Atacama Pipeline, a natural gas pipeline built across the Chilean Andes whose highest point is 5,100 meters above sea level; and the All American pipeline, the longest heated oil pipeline in the continental U.S. when constructed. Mr. Brown also served as the construction project manager for the Da Hong Shan iron ore slurry pipeline in Southwest China, which has the highest operating pressure and total lift of any pipeline in China.

“I am excited to be part of the Knight Warrior team during this transformative time for the company,” said Mr. Brown. “Knight Warrior LLC is committed to being a good neighbor during construction and subsequent operations of the pipeline, and I will empower our team members to focus on safety and strong stakeholder relations throughout the duration of the Knight Warrior project. My experience in all aspects of construction of some of the most technologically challenging pipelines in the world will enable me to successfully manage a project of this scale and scope.”

“We are pleased with the progress of the project to this point and are confident in the abilities of the experienced team that we have assembled to effectively manage the planning, permitting and construction processes,” said Mr. Brown. “Hatch Mott MacDonald, Contract Land Staff and Apex are leaders in their respective fields, and we will rely on their expertise to assist with a sound and reliable project. When completed, the added capacity provided by the Knight Warrior pipeline will help the prolific Eaglebine/Woodbine region achieve its full potential by giving producers there direct access to the Gulf Coast refinery complex, as well as other U.S. and foreign markets.”

“Hatch Mott MacDonald (HMM) is delighted to join the team of energy professionals that will design and construct the new Knight Warrior pipeline,” said Hatch Mott MacDonald President and CEO Nick DeNichilo. “HMM will provide engineering, mapping and procurement support services, playing a key part in the development of the project. Building on our credentials as a leading pipeline engineering consultant, we look forward to providing solutions for this important project."

“Knight Warrior’s pipeline represents a significant investment in a new system to ensure crude oil producers in the emerging Eaglebine/Woodbine crude oil play have access to key refining markets,” said Brent Leftwich, president and CEO of Contract Land Staff, LLC (CLS). “CLS will work closely with landowners along the route to acquire right-of-way for the proposed pipeline. We are thrilled to be part of the team for this important project.”

“Apex is pleased to be working on the Knight Warrior project,” said Robin Laine, national program manager at Apex. “Designing, siting and building a new pipeline of this magnitude is a complex and involved undertaking, especially given the detailed environmental impact information that is required before construction can commence. Apex, with more than 25 years of experience in the industry, is confident that we will successfully navigate the state and federal permitting process and ensure that the Knight Warrior project is in compliance with all applicable regulatory requirements.”

The Knight Warrior East Texas project will consist of a 160-mile, 16-inch diameter pipeline originating in Madison County continuing south through Walker, Grimes, Montgomery and Harris counties. The pipeline will have an initial capacity of 100,000 BPD, will be expandable up to 200,000 BPD and will serve Eaglebine/Woodbine crude oil producers via two origination stations located near North Zulch and Madisonville, with a third station near Roans Prairie planned to accommodate future production growth in the area. The pipeline will have the capability to segregate and batch crude oil in order to help producers capture value for this premium product. The pipeline is estimated to cost approximately $300 million, subject to final pipeline design and shipper commitments, and is anticipated to be financed using a combination of debt and equity.

Interested parties desiring additional commercial information regarding the Knight Warrior pipeline may contact Brian Melton at (405) 278-6411 or via email at bmelton@bkep.com; or Jake Everett at (713) 632-8802 or via email at jeverett@bkep.com.

Knight Warrior LLC is a subsidiary of Blueknight Energy Partners, L.P. ("BKEP" or the "Partnership") (NASDAQ: BKEP) (NASDAQ: BKEPP).

Forward-Looking Statements

This release may include forward-looking statements. Statements included in this release that are not historical facts are forward-looking statements. Such forward-looking statements are subject to various risks and uncertainties. These risks and uncertainties include, among other things, expectations regarding the development of the Knight Warrior Pipeline, including the expected timing, costs and profitability of such project. If any of these risks or uncertainties materializes, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those expected. The Partnership undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.