NEWS

WIRES

OTHER

Bayou City Exploration Updates on Its Current Acquisition and Development Activities

Bayou City Exploration ("the Company") (OTC BB: BYCX) is pleased to update on its current growth strategy, and its current acquisition and development activities.

Bayou City Exploration, Inc. is engaged in the upstream activities of acquiring, exploring, developing and producing oil and gas. Based in Houston, Texas, "The Bayou City," our primary focus is proven geologic trends, onshore in Texas and Louisiana. This area has a 75-year history of new technology applications that have led to significant new discoveries and have added substantial reserves.

Bayou City's team of geologists, geophysicists and engineers come from some of the world's leading oil and gas firms. Bayou City integrates their long experience and expertise in multi-disciplinary teams that apply new technology in exploration and production programs. Our team is especially skilled in managing the finding and upgrading of prospects by reprocessing and interpreting 3-D and 2-D seismic data in concert with other advanced techniques. This technological expertise is a key factor in the risk reduction of exploration prospects. Bayou City will then integrate this technology in developing innovative, cost-effective drilling and completion solutions. Bayou City's database has more than 7,200 square miles of 3-D data, principally in our area, as well as 13,000 miles of 2-D data.

Growth Strategy

--  Focus exploration and production in proven geologic trends throughout
    onshore Texas and Louisiana drawing on extensive Houston-based area
    resources and expertise.
--  Expand our prospect inventory by continuing to obtain 3-D seismic data
    from brokers, corporate landowners and field acquisition.
--  Reprocess and reinterpret data using fundamental geologic studies and
    sophisticated geophysical processing and interpretive techniques, which
    include recent 3-D processing algorithms, up-to-date AVO (amplitude versus
    offset) techniques and structural imaging technologies that will help
    reduce exploration risks.
--  Leverage industry contacts to create a base of partners for internally
    generated prospects as well as increasing the flow of submittals.
--  Negotiate exploration and seismic joint ventures with industry
    partners to expand our database and to accelerate prospect generation.
--  Build reserves by developing successful exploration and development
    prospects.
    

Current Acquisition and Development Activities

Live Oak Prospect
· 3 prospects on 2700 leased acres
· Potential for 100 BCF* of natural gas and 1 mmbo*
· Potential estimated gross value: $700 million

Nova Cat Prospect
· 3 prospects on 1440 leased acres
· Potential for 200 BCF of natural gas
· Potential estimated gross value: $1.2 billion

East Texas Prospects
· 6 prospects on 900 leased acres
· Potential for 80 BCF of natural gas and 40 mmbo
· Potential estimated gross value: $800 million

Iowa Dome Prospect
· 2 prospects on 760 leased acres
· Potential: 1mmbo and 1BCF
· Potential estimated gross value: $60 million
*mmbo: million barrels of oil
*BCF: billion cubic feet

About Bayou City Exploration

Bayou City Exploration, Inc. is an oil and gas exploration firm focused in proven geologic trends in East Texas, the Gulf Coast of Texas and Louisiana. Based in Houston, Texas, Bayou City leverages its management team's extensive experience and multi-disciplinary expertise in applying advanced 3-D seismic analysis, 3-D processing algorithms, amplitude attribute and imaging technologies to reduce the drilling risks by identifying the presence of economic hydrocarbons. The Company's database has more than 7,200 square miles of 3-D data, most of it covering Bayou City's focus area, as well as 13,000 miles of 2-D data.

This news release may include forward-looking statements, with respect to achieving corporate objectives, developing additional project interests, the company's analysis of opportunities in the acquisition and development of various project interests and certain other matters. These statements involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements contained herein.

Distributed by Market Wire