Bayou City Exploration Updates on Operations
Tuesday October 17, 9:15 am ET
HOUSTON, TX--(MARKET WIRE)--Oct 17, 2006 -- Bayou City Exploration, Inc. ("Bayou City") or ("the Company") (OTC BB:BYCX.OB - News) is pleased to provide an operational update.
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South Texas Exploration Program
Bayou City has successfully completed the first stage of its South Texas exploration program with positive results. The program, a partnership with Deeside Energy. LLC. ("Deeside"), started 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 program applies world-class 3-D seismic software technology to improve delineation and de-risking of leads and reduce interpretation cycle time.
The program's first stage conducted prospect delineation on more than 10,000 acres in combination with the latest AVO inversion techniques. The positive results have led Bayou City to form a joint venture with an independent exploration company based in Houston to develop the prospective acreage. Bayou City will conduct the necessary geologic and geophysical work; the independent exploration company will pay for all the leases required in the project for a 50% interest in the prospect or prospects to be leased.
"The Bayou City-Deeside partnership has rapidly proved its value," says Morris Hewitt, Bayou City President. "The combination of Bayou City's analytical and interpretive expertise with leading edge 3D seismic image processing technology is giving us the ability to quickly identify prospects, lease acreage and attract partners."
Mclean #1 in Live Oak County
Bayou City has elected to temporarily abandon the Mclean #1 well; a re-entry of an existing well bore in Live Oak County, Texas, pending further evaluation. The Company plans to purchase, with its partners, 3-D seismic data over the prospect. Mclean #1 is part of an overall position of 2961 acres in Live Oak County owned by Bayou City and its partners.
Sale of Anderson County Leases
Bayou City and its partners have agreed in principle to sell their Anderson County leases for cash and a carried interest in any future wells drilled that will be shared among its partners. The Company has approximately 3000 acres in the area. Bayou City expects the deal to be completed in the very near future.
About Bayou City
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 Deeside Energy
Deeside is a joint venture of Foster Findlay Associates, Ltd. ("ffA") of Newcastle upon Tyne, England and Wood Roberts, LLC. ("Wood Roberts") of Houston, Texas. ffA is a world leader in the development and commercialization of 3D seismic image processing technology for the oil and gas industry. ffA Technology improves estimation of reserves, de-risking of drilling targets and well path planning by extracting comprehensive and detailed geological information from 3D seismic data, rapidly, objectively and reliably.
Wood Roberts is a corporate financial advisory firm specializing in the energy sector.
For more information, contact: Morris Hewitt at (832) 358-3900
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.
Contact:
For more information, contact:
Morris Hewitt
(832) 358-3900
