SOURCE: Bayou City Exploration, Inc.

January 18, 2007 09:13 ET

Bayou City Exploration Announces 4th Quarter Operational Update

HOUSTON, TX -- (MARKET WIRE) -- January 18, 2007 -- Bayou City Exploration, Inc. (OTCBB: BYCX) announced today that it has completed its lease acquisition program in the McAllen West Prospect and now controls 875.0 acres, more or less, in the McCampbell Field area of Aransas County, Texas. The Prospect will test the Frio "P" Series sands between 11,700' and 12,500'. The unrisked reserves for the McAllen West Prospect are estimated to be approximately 19 BCF. Bayou City is expected to have a 25% working interest in the Prospect. Bayou City's interest will be a carried interest on the initial test well in the Prospect.

Bayou City completed its drilling operations at casing point on the Walker Louisiana Properties 18-1 well, Calcasieu Parish. The open hole log on the well showed several prospective zones all of which had limited thickness and aerial extent. It was determined best to plug and abandon the well at casing point.

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.

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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