Bayou City Successfully Tests Production on First Louisiana Well

Bayou City Exploration reported the successful production test results on its first well (Hilda Henry #1) in Jefferson Davis Parish, LA. Bayou City plans to drill a second well there in the second quarter of 2006.

Hilda Henry #1 reached a total depth of 3,850 feet and has been production tested. The well flowed no water or sand and tested natural gas at the rate of 356 MCF/D*, at a flowing tubing pressure of 1525 PSI on an 8/64" choke. The various pipelines and taps in the area are currently under evaluation to determine which will be used for this production.

Bayou City Exploration and its partners (Petro Resources Incorporated, Falcon Natural Gas Corp. and Fairfield Energy Ventures) plan to drill a second Jefferson Davis Parish well at the start of the second quarter. They will drill to a measured depth of 7,790 feet to test the Amph B through Siph d formations. Several additional prospects are currently under review in Jefferson Davis and Calcasieu Parishes.

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, TX, 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 reduce the drilling risks by identifying the presence of economic hydrocarbons. The Company's database has more than 7,200 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.