Bayou City Exploration Partners in Pilot Program Applying World-Leading 3D Software

Advanced Seismic Image Processing Technology Yielding Promising Results in South Texas Data Sets

Bayou City Exploration, Inc. (OTCBB: BYCX) announces that it has achieved promising results from a pilot project with Deeside Energy LLC ("Deeside) launched in spring 2006.

Bayou City is partnering with Deeside to accelerate the generation of high quality prospects from Bayou City's extensive data library. The project applies world class 3D software technology to improve delineation and de-risking of leads and reduce interpretation cycle time. Deeside is utilizing world-leading 3D seismic image processing technology for exploration and development of oil and gas fields.

"The initial results of the pilot program are very promising," said Bayou City President Morris Hewitt. "The combination of Bayou City's analytical and interpretive expertise with the seismic processing technology provides a clear advantage in quickly identifying prospects, in leasing acreage ahead of our competitors, and in attracting drilling partners."

The joint venture is providing Bayou City with 3D subsurface information from its select data sets in South Texas. The 3D software technology enables Bayou City to obtain rapid, detailed and objective reconnaissance of the seismic data that provides:

--  subsurface information of industry leading quality;
--  the ability to evaluate 3D seismic data many times more quickly than
    conventional 3D interpretation techniques allow;
    

The innovative 3D seismic image processing technology enables Bayou City to achieve rapid and objective extraction of comprehensive subsurface information from volumes of seismic data without manual pre-interpretation. This technology, in management's opinion, gives Bayou City the potential to achieve and sustain higher drilling success rates.

Over the past 10 years majors, national oil companies and senior independents have proven the value of the seismic processing technology that Bayou is applying in challenging exploration, development and production scenarios worldwide. Frequently the technology identifies significant geological features, such as potential reservoir bodies and complex faulting and fracturing, that are fully consistent with well data but may be overlooked in the conventional interpretation process. Subsurface information volumes can be directly integrated into industry standard 3D interpretation, reservoir modelling and well planning workflows to increase productivity and enhance the quality of critical decisions.

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 long experience and multidisciplinary expertise in applying advanced 3-D seismic analysis, 3-D processing algorithms, amplitude attribute and imaging technologies to the analysis and selection of high-potential prospects with low exploration risk. The Company's database has more than 7,500 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.

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