Bayou Bend Petroleum Ltd. has signed a definitive agreement to acquire an additional approximately 5.25% interest in the Marsh Island Gas Project in the Gulf of Mexico bringing its total interest in the project up to 35.5809%. The consideration for the additional 5.25% interest is US $6.16 million.

Bayou Bend (formerly Kit Resources Ltd.) has, as announced on January 18, 2007, also entered into an agreement to acquire all of the issued and outstanding membership interests of Summit Energy Company, L.L.C. ("Summit"), a privately held, arms length, oil and gas company headquartered in Lafayette, Louisiana with a quality portfolio of gas/condensate assets onshore/offshore Marsh Island in the Gulf of Mexico.

The Marsh Island project is newly opened up acreage in a prolific producing area which is virtually unexplored. The Company has an exclusive leasing option to acquire 18,158 acres within a 90,000 acre AMI (Area of Mutual Interest) that is surrounded by producing gas/condensate fields. Recent new discoveries in the vicinity include the Mound Point, Lake Sand and W. Cote Blanche fields with a total estimated 11.5+ trillion cubic feet of gas equivalent ("TcfGE"). This estimate has been obtained from available public records, but has not been verified by Bayou Bend and is not warranted by Summit.

On the Marsh Island project, over 24 prospects have been identified on new 3D seismic. The Company intends to commence an aggressive drilling program in early 2007.

The Summit assets also include an 18.1634% interest in a 40 MMcfgpd production facility tied into the existing regional pipeline infrastructure. This facility has the potential to accelerate production timing and reduce capital costs upon successful completion of the exploration program.