| BAYOU CITY EXPLORATION, INC.                           |
|--------------------------------------------------------|
| (Exact Name of Registrant as Specified in Its Charter) |

| NEVADA                                                         | 61-1306702                              |
|----------------------------------------------------------------|-----------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |

| 632 Adams Street, Suite-700, Bowling Green, KY 42101 |
|------------------------------------------------------|
| (Address of Principal Executive Offices)             |

| (800) 798-3389                                             |
|------------------------------------------------------------|
| (Registrant’s telephone number, including area code) |

| Not Applicable                                                                     |
|------------------------------------------------------------------------------------|
| (Former name, former address and former fiscal year, if changed since last report) |

|  ̈Large accelerated filer |  ̈Accelerated filer |  ̈Non-accelerated filer | þSmaller reporting company |
|-------------------------------|-------------------------|-----------------------------|---------------------------------|

| Shares outstanding for each class of stock as of the latest practicable date |
|------------------------------------------------------------------------------|

| Title or Class                                                  | Shares Outstanding on August 14, 2010 |
|-----------------------------------------------------------------|---------------------------------------|
| Common Stock, $0.005 par valuePreferred Stock, $0.001 par value | 29,003,6330                           |

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|    | PART IFINANCIAL INFORMATION                                                                 |   |
|---------|---------------------------------------------------------------------------------------------|--------|
|    |                                                                                        |   |
| ITEM 1. | FINANCIAL STATEMENTS (UNAUDITED)                                                            |   |
|    |                                                                                        |   |
|    | BALANCE SHEETS AS OF JUNE 30, 2010 (UNAUDITED) AND DECEMBER 31, 2009                        | 3      |
|    |                                                                                        |   |
|    | STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2010 AND 2009 (UNAUDITED)        | 4      |
|    |                                                                                        |   |
|    | STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2010 AND 2009 (UNAUDITED)        | 5      |
|    |                                                                                        |   |
|    | NOTES TO FINANCIAL STATEMENTS (UNAUDITED)                                                   | 6      |
|    |                                                                                        |   |
| ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 7      |
|    |                                                                                        |   |
| ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                  | 10     |
|    |                                                                                        |   |
| ITEM 4. | CONTROLS AND PROCEDURES                                                                     | 10     |
|    |                                                                                        |   |
|    |                                                                                        |   |
|    | PART IIOTHER INFORMATION                                                                    |   |
|    |                                                                                        |   |
| ITEM 1. | LEGAL PROCEEDINGS                                                                           | 10     |
|    |                                                                                        |   |
| ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                                 | 10     |
|    |                                                                                        |   |
| ITEM 3. | DEFAULTS UPON SENIOR SECURITIES                                                             | 10     |
|    |                                                                                        |   |
| ITEM 4. | (REMOVED AND RESERVED)                                                                      | 10     |
|    |                                                                                        |   |
| ITEM 5. | OTHER INFORMATION                                                                           | 10     |
|    |                                                                                        |   |
| ITEM 6. | EXHIBITS                                                                                    |   |
|    |                                                                                        |   |
|    | EX-31.1                                                                                     |   |
|    |                                                                                        |   |
|    | EX-31.2                                                                                     |   |
|    |                                                                                        |   |
|    | EX-32.1                                                                                     |   |
|    |                                                                                        |   |
|    | EX-32.2                                                                                     |   |

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|                                                                                                                                           |   | June 30, 2010 |        |   | December 31, 2009 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------|--------|-------------------|--------|
|                                                                                                                                           |   | (Unaudited)   |        |   |              |   |
| ASSETS                                                                                                                                         |   |          |        |   |              |   |
| CURRENT ASSETS:                                                                                                                                |   |          |        |   |              |   |
| Cash                                                                                                                                           |   | $             | 488,884     |   |              | $      | 51,704 |   |
| Accounts receivable:                                                                                                                           |   |          |        |   |              |   |   |   |
| Trade and other (net of allowance for doubtful accounts - $37,465 as of June 30, 2010 and December 31, 2009)                                   |   |          | 14,772      |   |              |   | 165,946 |   |
| Prepaid expenses                                                                                                                               |   |          | 26,000      |   |              |   | 0 |   |
| TOTAL CURRENT ASSETS                                                                                                                           |   |          | 529,656     |   |              |   | 217,650 |   |
|                                                                                                                                           |   |          |        |   |              |   |   |   |
| OIL & GAS PROPERTIES                                                                                                                       |   |          | 407,874     |   |              |   | 308,967 |   |
|                                                                                                                                           |   |          |        |   |              |   |   |   |
| TOTAL ASSETS                                                                                                                                   |   | $             | 937,530     |   |              | $      | 526,617 |   |
|                                                                                                                                           |   |          |        |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT):                                                                                                |   |          |        |   |              |   |   |   |
|                                                                                                                                           |   |          |        |   |              |   |   |   |
| CURRENT LIABILITIES:                                                                                                                           |   |          |        |   |              |   |   |   |
| Accounts payable and accrued liabilities                                                                                                       |   | $             | 38,513      |   |              | $      | 133,071 |   |
| Accounts payable – related party                                                                                                         |   |          | 84,906      |   |              |   | 134,906 |   |
| Notes payable – related parties                                                                                                          |   |          | 100,000     |   |              |   | 475,000 |   |
| TOTAL CURRENT LIABILITIES                                                                                                                      |   |          | 223,419     |   |              |   | 742,977 |   |
| TOTAL LIABILITIES                                                                                                                              |   |          | 223,419     |   |              |   | 742,977 |   |
|                                                                                                                                           |   |          |        |   |              |   |   |   |
| STOCKHOLDERS' DEFICIT                                                                                                                          |   |          |        |   |              |   |   |   |
| Preferred stock, $0.001 par value; 5,000,000 shares authorized; 0 shares issued and outstanding as of June 30, 2010 and December 31, 2009      |   |          | -           |   |              |   | - |   |
| Common stock, $0.005 par value; 150,000,000 shares authorized; 26,653,633 shares issued and outstanding at June 30, 2010 and December 31, 2009 |   |          | 133,268     |   |              |   | 133,268 |   |
| Additional paid in capital                                                                                                                     |   |          | 13,363,430  |   |              |   | 13,363,430 |   |
| Accumulated deficit                                                                                                                            |   |          | (12,782,587 | )      |              |   | (13,713,058 | ) |
| TOTAL STOCKHOLDERS' EQUITY (DEFICIT)                                                                                                           |   |          | 714,111     |   |              |   | (216,360 | ) |
|                                                                                                                                           |   |          |        |   |              |   |   |   |
| TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT)                                                                                         |   | $             | 937,530     |   |              | $      | 526,617 |   |

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|                                                                 |   | Three Months EndedJune 30, |       |   | Six Months EndedJune 30, |   |
|----------------------------------------------------------------------|--------|----------------------------|------------|--------|--------------------------|--------|
|                                                                 |   | 2010                       |       |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
| OPERATING REVENUES:                                                  |   |                       |       |   |                     |   |   |   |   |   |   |   |
| Oil and gas sales                                                    |   | $                          | 40,573     |   |                     | $      | 263,878 |   |   | $ | 127,986 |   |   | $ | 546,903 |   |
| TOTAL OPERATING REVENUES                                             |   |                       | 40,573     |   |                     |   | 263,878 |   |   |   | 127,986 |   |   |   | 546,903 |   |
|                                                                 |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING COSTS AND EXPENSES:                                        |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Lease operating expenses and production taxes                        |   |                       | 10,554     |   |                     |   | 22,401 |   |   |   | 21,450 |   |   |   | 46,730 |   |
| Depreciation, depletion and amortization                             |   |                       | 12,185     |   |                     |   | (35,571 | ) |   |   | 18,764 |   |   |   | (34,112 | ) |
| General and administrative costs                                     |   |                       | 81,835     |   |                     |   | (46,755 | ) |   |   | 166,246 |   |   |   | 5,848 |   |
|                                                                 |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL OPERATING COSTS                                                |   |                       | 104,574    |   |                     |   | (59,925 | ) |   |   | 206,460 |   |   |   | 18,466 |   |
|                                                                 |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING INCOME (LOSS)                                              |   |                       | (64,001    | )      |                     |   | 323,803 |   |   |   | (78,474 | ) |   |   | 528,437 |   |
|                                                                 |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSE):                                              |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                     |   |                       | -          |   |                     |   | (7,980 | ) |   |   | (3,551 | ) |   |   | (18,073 | ) |
| Gain on sale of assets                                               |   |                       | -          |   |                     |   | - |   |   |   | 1,000,000 |   |   |   | - |   |
| Forgiveness of debt                                                  |   |                       | -          |   |                     |   | 1,803 |   |   |   | - |   |   |   | 167,344 |   |
| Other income                                                         |   |                       | 6,202      |   |                     |   | - |   |   |   | 12,496 |   |   |   | - |   |
|                                                                 |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME (LOSS) BEFORE INCOME TAX                                  |   |                       | (57,799    | )      |                     |   | 317,626 |   |   |   | 930,471 |   |   |   | 677,708 |   |
|                                                                 |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Income Tax Provision                                                 |   |                       | -          |   |                     |   | - |   |   |   | - |   |   |   | - |   |
|                                                                 |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME (LOSS)                                                    |   | $                          | (57,799    | )      |                     | $      | 317,626 |   |   | $ | 930,471 |   |   | $ | 677,708 |   |
|                                                                 |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| NET LOSS PER COMMON SHARE                                            |   | $                          | (0.00      | )      |                     | $      | 0.01 |   |   | $ | 0.03 |   |   | $ | 0.03 |   |
|                                                                 |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Weighted Average Common Shares Outstanding – Basic and Diluted |   |                       | 26,653,633 |   |                     |   | 26,653,633 |   |   |   | 26,653,633 |   |   |   | 26,653,633 |   |

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|                                                                                |   | Six Months EndedJune 30, |       |
|-------------------------------------------------------------------------------------|--------|--------------------------|------------|
|                                                                                |   | 2010                     |       |   | 2009 |   |
| CASH FLOW FROM OPERATING ACTIVITIES:                                                |   |                     |       |   |   |   |
|                                                                                |   |                     |       |   |   |   |
| Net Income                                                                          |   | $                        | 930,471    |   |   | $ | 677,708 |   |
| Adjustments to reconcile net income to net cash flows used in operating activities: |   |                     |       |   |   |   |   |   |
| Depreciation, depletion, and amortization                                           |   |                     | 18,764     |   |   |   | 5,834 |   |
| Gain on sale of oil and gas property                                                |   |                     | (1,000,000 | ) |   |   | - |   |
| Forgiveness of debt                                                                 |   |                     | -          |   |   |   | (167,344 | ) |
| Change in operating assets and liabilities:                                         |   |                     |       |   |   |   |   |   |
| Accounts receivable                                                                 |   |                     | 151,174    |   |   |   | 55,474 |   |
| Prepaid expenses                                                                    |   |                     | (26,000    | ) |   |   | - |   |
| AFE advances – JIB owners                                                     |   |                     | -          |   |   |   | (51,186 | ) |
| Accounts payable related party                                                      |   |                     | (50,000    | ) |   |   | (57,454 | ) |
| Accounts payable and accrued liabilities                                            |   |                     | (94,558    | ) |   |   | (92,274 | ) |
| Long term liability – P&A costs                                           |   |                     | -          |   |   |   | (43,806 | ) |
|                                                                                |   |                     |       |   |   |   |   |   |
| NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                                 |   |                     | (70,149    | ) |   |   | 326,952 |   |
|                                                                                |   |                     |       |   |   |   |   |   |
| CASH FLOW FROM INVESTING ACTIVITIES:                                                |   |                     |       |   |   |   |   |   |
| Purchase of oil and gas properties                                                  |   |                     | (117,671   | ) |   |   | (82,185 | ) |
| Proceeds from sale of oil and gas properties                                        |   |                     | 1,000,000  |   |   |   | - |   |
|                                                                                |   |                     |       |   |   |   |   |   |
| NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES                                 |   |                     | 882,329    |   |   |   | (82,185 | ) |
|                                                                                |   |                     |       |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                               |   |                     |       |   |   |   |   |   |
|                                                                                |   |                     |       |   |   |   |   |   |
| Payments on long term debt                                                          |   |                     | -          |   |   |   | (207,019 | ) |
| Proceeds (payments) on line of credit                                               |   |                     | (375,000   | ) |   |   | 15,450 |   |
|                                                                                |   |                     |       |   |   |   |   |   |
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES                            |   |                     | (375,000   | ) |   |   | (191,569 | ) |
|                                                                                |   |                     |       |   |   |   |   |   |
| NET INCREASE IN CASH                                                                |   |                     | 437,180    |   |   |   | 53,198 |   |
|                                                                                |   |                     |       |   |   |   |   |   |
| CASH AT BEGINNING OF PERIOD                                                         |   |                     | 51,704     |   |   |   | 18,042 |   |
|                                                                                |   |                     |       |   |   |   |   |   |
| CASH AT END OF PERIOD                                                               |   | $                        | 488,884    |   |   | $ | 71,240 |   |

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| Date: August 16, 2010 | BAYOU CITY EXPLORATION, INC.               |
|-----------------------|--------------------------------------------|
|                  | /s/ Charles T. Bukowski                    |
|                  | Charles T. Bukowski                        |
|                  | Chief Executive Officer and President |
|                  |                                       |
| Date: August 16, 2010 | BAYOU CITY EXPLORATION, INC.               |
|                  | /s/ Stephen C. Larkin                      |
|                  | Stephen C. Larkin                          |
|                  | Chief Financial Officer                    |

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