HOUSTON AMERICAN ENERGY ANNOUNCES FIRST QUARTER 2009 FINANCIAL RESULTS — Company Declares Quarterly Dividend of $.005 per Share —
Houston, Texas – May 8, 2009 – Houston American Energy Corp. (Nasdaq: HUSA) today reported its financial results for the quarter ended March 31, 2009.
The Company reported a net loss for the three months ended March 31, 2009 of $1,478,320, or $0.05 per share, on revenues of $445,142 as compared to net income of $871,721, or $0.03 per share, on revenues of $2,937,134 for the three months ended March 31, 2008. Mr. John F. Terwilliger, President and Chairman of Houston American Energy, stated, “The first three months of this year were very difficult for most energy companies and Houston American Energy was no exception. As a result of depressed commodity prices, our operator in South America made the determination to temporarily shut in our production which resulted in no oil being sold from February 13, 2009 to April 4, 2009 and, in turn, a steep drop in our revenues and profitability. Production has since been restored and, as a result, revenues can be expected to rise significantly in the second quarter over the first quarter of 2009. Management believes that this temporary shut in was a one time event, and that cost cutting measures implemented in the field will increase our profitability going forward.
While depressed commodity prices hurt our operating performance during the quarter, we see opportunities to capitalize on our sound financial condition and low overhead to grow our asset base through acquisition of assets and operations at historically low prices. Our management team is actively pursuing opportunities in this depressed market for oil and gas assets and is hopeful there will be results of this effort in the near term.
In view of the restoration of production and the Board of Directors’ confidence in the outlook for Houston American Energy, a dividend of $.005 per share has been declared for shareholders of record as of May 27, 2009 with a payment date of June 11, 2009. This dividend is a reduction from the last quarter when $.02 was paid. The Board of Directors believes in our policy of providing shareholders with a cash return and found no reason to allow one quarter’s results to alter this policy. By reducing the amount of the dividend, the Board believes we can support our goal of providing a cash return to investors while also pursuing our goal of capitalizing on favorable opportunities to invest resources in the acquisition of assets and operations.”
About Houston American Energy Corp.
Based in Houston, Texas, Houston American Energy Corp. is an independent energy company with interests in oil and natural gas wells and prospects. The company’s business strategy includes a property mix of producing and non-producing assets with a focus on Texas, Louisiana and Colombia. Additional information can be accessed by reviewing our Form 10-Q and other periodic reports filed with the Securities and Exchange Commission which can be found on our website at www.houstonamericanenergy.com.
Forward-Looking Statements
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, including statements regarding the company’s ability to increase its revenues and profitability in future periods and identify, finance, acquire and operate assets and operations on favorable terms, or at all. Those statements, and Houston American Energy Corp., are subject to a number of risks, including the potential changes in price based on operations and fluctuations in oil prices, changes in market conditions and other factors, effects of government regulation, and the ultimate results derived from our projects and our efforts to identify, finance and consummate the acquisition of assets and operations. 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 additional information, view the company’s website at www.houstonamericanenergy.com or contact the Houston American Energy Corp. at (713) 222-6966.