SOURCE: Bayou City Exploration, Inc.

November 16, 2006 09:40 ET

Work Commences at Wyandotte Prospect Near Morgan City Louisiana

Bayou City Exploration Has a 6.25 Carried Working Interest; Drilling Scheduled to Commence in Fourth Quarter of 2006

HOUSTON, TX -- (MARKET WIRE) -- November 16, 2006 -- Bayou City Exploration, Inc. ("Bayou City") ("the Company") (OTCBB: BYCX) announces that work is underway to drill the first well in Falcon Natural Gas Corp.'s Wyandotte Prospect near Morgan City, Louisiana. Bayou City has a 6.25% carried working interest in the Wyandotte Prospect, with no costs to the Company until the well is online.

The well (Hellenic 42 No.1) will target the Discorbis Bol formation. An independent engineering report has estimated the formation contains proven undeveloped reserves (PUD) of 26.182 BCF* of natural gas. Net revenue to Bayou City is 4.375% of the PUD, or approximately 1.15 BCF.

The well is expected to reach a total measured depth of 17,200 feet. Petrogulf, the operator, advises that the location for the drilling rig is more than 80% complete, with drilling operations scheduled to commence in the fourth quarter of this year.

About Bayou City Exploration

Bayou City Exploration, Inc. is an oil and gas exploration firm focused on developing proven geologic trends in East Texas, South Texas, the Gulf Coast of Texas and Louisiana. Based in Houston, Texas, Bayou City leverages its management team's 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 linear miles of 2-D data.

About Falcon Natural Gas

Falcon Natural Gas Corporation, based in Houston, is a natural gas exploration company focused on the acquisition and exploration of commercial prospects in onshore areas of the USA. For more information, visit www.falcongas.com.

About Petrogulf

Founded in 1981, Petrogulf Corporation, a Colorado corporation, is a privately held independent exploration and production company with corporate offices in Houston and Denver. Petrogulf has grown from a minority, non-operated working interest entity to a fully staffed exploration and production company which operates in eight states and owns interests in over 2,000 wells. The company is actively engaged in the drilling and development of natural gas and oil prospects in the continental United States, with a primary focus in the West Coast, Mid-Continent, Rocky Mountain and Gulf Coast regions.

*BCF = billion cubic feet

*MCF = thousand cubic feet

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 that could cause actual results to differ materially from those in the forward-looking statements contained herein.

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