Bayou City Exploration, Inc. is an oil and gas exploration company with operations in the Gulf Coast area of Texas, Louisiana and the Illinois Basin. Our objective is to build a balanced portfolio of productive oil and gas properties providing growth opportunities to our investing partners and to our company. Oil exploration is an expensive undertaking presenting a unique risk/reward scenario. The risk is unique in that tax incentives encourage individual investors to participate. Tax incentives notwithstanding, direct participation in oil and gas drilling projects is not a fit for the risk averse investor. The principals of Bayou City have participated in drilling projects from Texas to Montana and many places in between. Like many others in this industry we have experienced the swings in oil and gas prices, lived through the disappointment of dry holes and watched technology advance to open old fields to new production.
Bayou City partnerships purchase interests in exploratory wells and/or oil and gas producing properties with undrilled reserves. These partnerships then assume the associated drilling costs in exchange for partnership units representing a portion of the working interest derived from the wells they finance. As the Managing General Partner for these partnerships, Bayou City maintains a partnership interest or a working interest position outside of the partnership in each program. We pay our proportionate share of the actual cost of drilling, testing and completing the project well or wells and subsequent operating expenses to the extent that we retain a portion of the working interest.