Wednesday April 24, 2002, 3:00 p.m. Central Time
Press Release
SOURCE: Houston American Energy Corp.
Houston American Announces Letter of Intent to Acquire Seismic Data
HOUSTON, TX, April 24/PRNewswire-First Call/ —
Houston American Energy Corp. (OTC Bulletin Board: HUSA – news) announced today that it signed a letter of intent today with Millennium Seismic, Inc. to acquire a license to utilize seismic data owned by Millennium in exchange for shares of Houston American common stock and a warrant to acquire additional shares of Houston American common stock. The closing of the acquisition of the license agreement is subject to the execution of a definitive Exchange Agreement between the parties within the next 30 days. Any shares of the Houston American common stock to be received by Millennium will be restricted as to their resale pursuant to the Securities Act of 1933. However, the shares will be covered by a registration rights agreement. Millennium estimates that the value of the seismic data to be licensed is between $5 and $6 million.
The seismic data consists of over 32,000 linear miles of 2D seismic and approximately 500 square miles of 3D seismic data. In addition, data acquired and wholly-owned by Millennium in the next two years will be licensed to Houston American. This data will enable Houston American to greatly expand its prospect development activities. The company expects to generate a significant number of prospects which will be promoted to industry partners, outside investors or exploited with funds raised by the company. Management views this data acquisition as very positive for the company and expects to add value to the company far in excess of its costs.
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 companys documents and reports that are available from the company and the United States Securities and Exchange Commission.
FOR FURTHER INFORMATION CONTACT: 713-222-6966, [email protected]
SOURCE: Houston American Energy Corp.