Bayou City Exploration, Inc., (the “Company”), a Nevada corporation, was organized in November 1994, as Gem Source, Incorporated (“Gem Source”), and subsequently changed the name to Blue Ridge Energy, Inc. in May 1996. In September 2005, the Company changed its name to Bayou City Exploration, Inc.
The Company is engaged in the oil and gas business primarily in the gulf coast of Texas, east Texas, south Texas, and Louisiana. The Company develops oil and gas prospects for the drilling of oil and gas wells and attempts to sell the prospects to oil and gas exploration companies under terms that provide the participating company will provide the funds necessary to drill and complete a well on the prospect, reimburse the Company for any leasehold or exploration costs associated with the prospect, pay the Company a prospect fee for developing the oil and gas prospect, and allow the Company to retain a carried interest in the well to be drilled. The wells drilled by the Company included both exploratory and development wells.
The Company’s corporate headquarters are located at 632 Adams Street, Suite 700, Bowling Green, Kentucky, 42101. Robert D. Burr has served as President and Chief Executive Officer of the Company since April 2007 and Stephen C. Larkin has served as Chief Financial Officer since January 2010.
The Company seeks to sell a portion of the interest in each prospect it generates to an operator that will be responsible for the drilling and operating of the oil and gas properties. Currently, all the Company’s ownership in oil and gas wells is through non-operated working interests.
During 2009, the Company was successful in reaching settlement or payout arrangements with many of its vendors in return for a full release on all remaining liabilities. A gain of $166,000 was recognized in the year of 2009 due to these negotiations.
In prior years the Company has financed much of its operations through the sale of securities. For the three months ended March 31, 2010 and 2009 the Company sold no shares of common stock and no warrants or options were exercised.
As of March 31, 2010, the Company had total assets of $1,067,000, total liabilities of $295,000 and a stockholders’ equity of $772,000. The Company had a net income of $988,000 for the three months ended March 31, 2010 and net income of $360,000 for the same period in 2009. The net income per common share was $0.04 per share during the three months ended March 31, 2010 as compared to $0.01 during the same period in 2009. All per share data in this report has been adjusted to give effect to applicable stock issues and conversions.
All of the Company’s periodic report filings with the SEC pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934, as amended, are available through the SEC web site located at www.sec.gov, including our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports. The Company will also make available to any stockholder, without charge, copies of its Annual Report on Form 10-K as filed with the SEC and a copy of its Code of Ethics. For copies of this, or any other filings, please contact: Robert D. Burr at Bayou City Exploration, Inc., 632 Adams Street — Suite 700, Bowling Green, KY 42101 or call (800)-798-3389.