HOUSTON AMERICAN ENERGY ANNOUNCES THIRD QUARTER 2009 FINANCIAL RESULTS — Company Declares Quarterly Dividend of $.005 per Share —
Houston, Texas November 6, 2009 Houston American Energy Corp. (Nasdaq: HUSA) yesterday reported its financial results for the quarter ended September 30, 2009.
The Company reported net income for the three months ended September 30, 2009 of $428,578, or $0.02 per share, on revenues of $2,403,996, as compared to net income of $798,832, or $0.03 per share, on revenues of $2,350,782 for the three months ended September 30, 2008. For the nine months ended September 30, 2009, the company reported a loss of $937,634, or $0.03 per share, on revenue of $3,983,256, as compared to net income of $4,870,356, or $0.17 per diluted share, on revenues of $8,616,868. The increase in revenue for the quarter was primarily attributable to increased volumes in our Colombia operations, offset by decreased commodity prices realized in the 2009 quarter as compared to 2008. The decrease in revenue for the nine months ended September 30, 2009 was primarily attributable to reduced production from the majority of our wells being shut in during the later half of the 1st quarter and early in the 2nd quarter of 2009, and lost production related to the sale of the Caracara concession in 2008. Mr. John F. Terwilliger, President and Chairman of Houston American Energy, stated, Houston American Energys production volumes sold in the third quarter showed an 80% improvement over the second quarter and a 46% improvement versus the volumes sold during the third quarter of 2008. We expect this trend to continue into the fourth quarter as production volumes have been strong and are expected to stay strong going forward. The next six months should be very eventful for Houston American Energy as we expect to commence drilling on one of our new blocks in Colombia. In addition, during this period we should have the results of the sales process of a portion of our Colombian assets as described in our Form 8-K filed on September 23, 2009, which we believe will provide significant additional liquidity to the Company. These are exciting times for Houston American Energy as we are embarking on a new and potentially very significant growth phase for the Company.
In view of the Board of Directors confidence in the outlook for Houston American Energy, a dividend of $0.005 per share has been declared for shareholders of record as of December 1, 2009 with a payment date of December 17, 2009.
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.
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 companys ability to increase its production sales volumes, revenues and profitability in future periods, its ability to identify, finance, acquire and operate assets and operations on favorable terms, or at all, and the ultimate proceeds, if any, that may be received from current efforts to sell a portion of the companys Colombian assets. 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.