Falcon Natural Gas Corp. Signs Non Binding LOI with Blue Ridge Group, Inc. and Bayou City Exploration, Inc. to Purchase Working Interest in Six New Prospects

Business Wire, Sept 30, 2005

HOUSTON -- Falcon Natural Gas Corp. (OTCBB:FNGC), announced today that the Company has signed non binding letters of intent (LOI) with Blue Ridge Group, Inc. (BRG) and Bayou City Exploration, Inc. (OTCBB: BYCX) (BCE) to purchase working interest in one of BRG's and five of BCE's oil and gas prospects.

According to the non binding letters of intent with BRG, Falcon will purchase 12.5% of the working interest of Prospect 107 located in Beauregard Parish Louisiana and pay 16.67% of all well costs to casing point on the initial well drilled on the prospect. Additionally, Falcon will pay 16.67% of all G&G costs, third party prospect fees, land brokerage costs, lease bonus and all other similar costs associated with the prospect.

Under the terms of the LOI with BCE, Falcon will purchase 12.5% of the working interest for the Live Oak County Prospects, which include Jaboncillo Windmill Prospect, Leopard Branch Prospect and Frost National Bank Deep Prospect. Additionally, Falcon agrees to pay 16.67% of all well costs to casing point on the initial well drilled on each prospect and 16.67% of all G&G costs, third party prospect fees, land brokerage costs, lease bonus and all other similar costs associated with the prospect.

Under the trade terms for BCE's Jeff David Parish Prospects, including Gemini Prospect and Zodiac II Prospect, Falcon agrees to purchase 25.0% of the working interest from BCE. Also, Falcon will pay 33.33% of all well costs to casing point on the initial well drilled on each prospect and its proportionate share of all G&G costs, third party prospect fees, land brokerage costs, lease bonus and all other similar costs associated with the prospect.

About Falcon Natural Gas Corp.

Falcon Natural Gas Corp. is a Houston, Texas based Natural Gas exploration company. The company is focused on the acquisition and exploration of commercial prospects in onshore areas of the United States of America. For more information visit www.falcongas.com.

About Bayou City Exploration, Inc.

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, Texas, 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. For more information visit www.blueridgegroup.com.

Safe Harbor for Forward-Looking Statements: This release contains certain "forward-looking statements", including, without limitation, expectations, beliefs, plans and objectives regarding the potential transactions and ventures discussed in this release. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the risks inherent in oil & gas exploration, the need to obtain additional financing, the availability of needed personnel and equipment for the future exploration and development, fluctuations in gas prices, and general economic conditions.