Houston American Announces Closing of License to Acquire Seismic Data and Acquisition of Royalty Interest

Press Release
SOURCE: Houston American Energy Corp.
Houston American Announces Closing of License to Acquire Seismic Data and Acquisition of Royalty Interest
HOUSTON, TX, July 22, 2002
Houston American has closed its acquisition of a seismic data license agreement with Millennium Seismic in accordance with a letter of intent first announced on April 24, 2002. The management of
Houston American Energy is very pleased to finalize this transaction. Houston American expects to exploit considerable opportunities created by this data license agreement. Houston American is also pleased to announce the acquisition of a five percent term royalty in 150 net and 300 gross acres in Lavaca County, Texas. The terms called for a cash payment which has been paid. Management is excited since two wells are expected to be drilled on this acreage within the next year. The first well to test the Middle Frio formation is expected to commence drilling by mid September 2002. This well is in close proximity to wells that have produced from the objective intervals. The second well is expected to test the Lower Wilcox formation below 14,000′ and is planned to be drilled within one year. While the Company’s royalty interest will be lessened by the pooling of leases for the deep test, a new field may be discovered having multiple productive interval potential and therefore may result in additional wells.
Management believes these prospects have good potential for Long Life Reserves and Revenue Stream.
About HOUSTON AMERICAN ENERGY CORP.
Based in Houston, Texas, Houston American Energy Corp. is a natural resources development company with interests in oil and gas wells, and interests in oil and gas prospects. Additional information can be accessed by reviewing the December 31, 2001 Form 10-KSB. The information in this release includes certain forward-looking statements that are based on assumptions that in the future may prove not to have been accurate. Those statements, and Houston American are subject to a number of risks, including production variances from expectations, volatility of product prices, the capital expenditures required to fund its operations, environmental risks, competition, government regulation, and the ability of the company to implement its business strategy. These and other risks are described in the company’s documents and reports that are available from the company and the United States Securities and Exchange Commission.
FOR FURTHER INFORMATION CONTACT: 713-222-6966, jft@houstonamericanenergy.com
SOURCE: Houston American Energy Corp.