SOURCE: Bayou City Exploration, Inc.

January 22, 2007 09:49 ET

Bayou City Exploration Completes Geophysical Review Using State-of-the-Art 3D Software

HOUSTON, TX -- (MARKET WIRE) -- January 22, 2007 -- Bayou City Exploration, Inc. (OTCBB: BYCX) announced today that it has completed its geophysical/geological review targeting specific 3D seismic surveys located in the Texas Gulf Coast region. Using ffA's state-of-the-art 3D seismic analysis software and leading industry AVO techniques, Bayou City's review has yielded 7 prospects and numerous leads with unrisked potential gas reserves in excess of 100 Bcf. Initial lease checks have been completed, environmental assessments and gas marketing studies have been initiated in preparation for commencement of operations on the prospects.

Based on the positive results from initial studies, Bayou City has expanded its exploration program with Deeside Energy, LLC. ("Deeside") to include additional 3D seismic surveys in other areas of Texas. Based on previous geological studies the company has delineated several leads in these surveys.

Deeside is a joint venture between Wood Roberts, LLC. and ffA (www.ffa.co.uk). Wood Roberts is an investment banking and corporate finance firm with special expertise in oil and gas ventures (www.woodroberts.com).

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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