Bayou Bend Expands GOM Portfolio

Bayou Bend Petroleum has entered into a Farm-out Agreement for oil and gas exploration rights on South Marsh Island Block 165 ("SMI 165"), located in the Outer Continental Shelf, Gulf of Mexico. Upon the completion of its work commitment, Bayou Bend will earn 100 percent working interest in SMI Block 165 to depth drilled.

This shallow water block is located in 233 feet of water and encompasses over 2,500 acres. The block hosts several sizeable prospects and leads, many of which have 15 BCF+ potential. A drilling program is planned to have a well spud during the third quarter of this year. The primary target is ponded turbidites in a salt-floored mini-basin at a prognosed depth of 8,200 feet.

SMI Block 165 is located directly adjacent to the Company's SMI Block 164 which hosts similar targets on trend.

"South Marsh Island Block 165 is a very good complement to our existing prospect inventory on SMI Block 164. The results of the upcoming exploration well on SMI 165 will enable us to further evaluate and develop additional prospects in both blocks," said Clinton W. Coldren, President and Chief Executive Officer of Bayou Bend Offshore, Ltd.

Bayou Bend is an oil and gas exploration and production company with a focus in the Gulf of Mexico shallow water shelf area. The Company has lease interests in the State Waters of Louisiana near Marsh Island and owns a 100% interest in several Federal OCS blocks offshore Louisiana and Texas. The Company has an aggressive drilling program planned for 2007.

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