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                                                                    EXHIBIT 20.1

 
[LOGO OF ZYDECO APPEARS HERE]                                      NEWS RELEASE

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For Immediate Release



Contact:  Mr. Sam Myers, Jr.
          Chief Executive Officer
          (713) 659-2222



                 ZYDECO ENERGY ANNOUNCES THIRD QUARTER RESULTS

     Houston, Texas - Monday, November 17, 1997 - Zydeco Energy, Inc. (Nasdaq:
ZNRG) announced today its results of operations for the three months and nine
months ended September 30, 1997. The Company reported a net loss of $1,957,000,
or $0.24 per share, for the three months ended September 30, 1997, resulting in
a net loss of $4,224,000, or $0.59 per share, for the nine months ended
September 30, 1997. The increase in net loss was primarily due to the level of
geophysical expenses incurred in the third quarter period ($1,425,000 or $0.17
per share) and year-to-date period ($2,420,000 or $0.34 per share) as the
Company completed its seismic data acquisition phase with respect to its West
Cameron Seismic Project. The Company uses the successful efforts method of 
accounting, which generally requires that geological and geophysical costs be 
expensed when incurred. The Company had reported a net loss of $895,000, or
$0.14 per share, and $1,487,000, or $0.25 per share, for the three and nine
month periods ended September 30, 1996, respectively.

     The Company reported operating revenues of $438,000 and operating expenses
of $2,478,000 for the three months ended September 30, 1997, compared to
operating revenues of $461,000 and operating expenses of $1,404,000 for the
three months ended September 30, 1996. Operating revenues of $1,069,000 and
operating expenses of $5,473,000 for the nine months ended September 30, 1997,
compared to operating revenues of $1,066,000 and operating expenses of
$2,745,000 for the nine months ended September 30, 1996. Weighted average common
stock and common stock equivalents outstanding were 8,171,000 shares, 6,472,000
shares, 7,123,000 shares, and 6,027,000 shares for the three months and nine
months ended September 30, 1997, and 1996, respectively.

     On November 5, 1997, Mr. W. Kyle Willis resigned as Vice President, 
Treasurer, Secretary, and Chief Financial Officer of the Company in order to 
join an oilfield equipment and services company. Mr. Stephen P. Jacobs was 
elected Chief Accounting Officer and Secretary of the Company. Mr. Willis will 
continue to assist the Company in financial and reporting matters as a 
consultant.

     This news release may contain forward-looking statements that are based on
assumptions that in the future may prove not to have been accurate.  Those
statements, and Zydeco Energy's business and prospects, are subject to a number
of risks including the volatility of oil and gas prices, environmental risks,
operating hazards and risks, risks associated with natural gas processing
plants, risks related to exploration and development drilling, uncertainties
about estimates of reserves, competition, government regulation, and the ability
of the Company to implement its business strategy.  These and other risks are
described in the Company's reports that are available from the United States
Securities and Exchange Commission.
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                 ZYDECO ENERGY ANNOUNCES THIRD QUARTER RESULTS
                                  (CONTINUED)


     Zydeco Energy, Inc. is an independent oil and gas exploration company
engaged in acquiring leases, drilling and producing reserves utilizing focused
geologic concepts and advanced 3D seismic and computer-aided (CAEX) exploration
technology, including enhanced structural and stratigraphic depth imaging and
attribute analysis.  Zydeco's efforts are focused primarily in the Louisiana
Transition Zone and in the Timbalier Trench.

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