diff --git a/x/evm/handler.go b/x/evm/handler.go
index 4b121203..f521324c 100644
--- a/x/evm/handler.go
+++ b/x/evm/handler.go
@@ -74,7 +74,9 @@ func handleETHTxMsg(ctx sdk.Context, keeper Keeper, msg types.EthereumTxMsg) sdk
 	keeper.txCount.increment()
 
 	bloom, res := st.TransitionCSDB(ctx)
-	keeper.bloom.Or(keeper.bloom, bloom)
+	if res.IsOK() {
+		keeper.bloom.Or(keeper.bloom, bloom)
+	}
 	return res
 }
 
diff --git a/x/evm/types/state_transition.go b/x/evm/types/state_transition.go
index 700677b3..0a4b22ea 100644
--- a/x/evm/types/state_transition.go
+++ b/x/evm/types/state_transition.go
@@ -36,7 +36,7 @@ func (st StateTransition) TransitionCSDB(ctx sdk.Context) (*big.Int, sdk.Result)
 		return nil, res
 	}
 
-	cost, err := core.IntrinsicGas(st.Payload, st.Recipient == nil, true)
+	cost, err := core.IntrinsicGas(st.Payload, contractCreation, true)
 	if err != nil {
 		return nil, sdk.ErrOutOfGas("invalid intrinsic gas for transaction").Result()
 	}
@@ -105,7 +105,12 @@ func (st StateTransition) TransitionCSDB(ctx sdk.Context) (*big.Int, sdk.Result)
 	// handle errors
 	if vmerr != nil {
 		res := emint.ErrVMExecution(vmerr.Error()).Result()
+		if vmerr == vm.ErrOutOfGas || vmerr == vm.ErrCodeStoreOutOfGas {
+			res = sdk.ErrOutOfGas("EVM execution went out of gas").Result()
+		}
 		res.Data = returnData
+		// Consume gas before returning
+		ctx.GasMeter().ConsumeGas(gasLimit-leftOverGas, "EVM execution consumption")
 		return nil, res
 	}