HOUSTON AMERICAN ENERGY ANNOUNCES WELL OPERATIONS
Houston, Texas – February 21, 2007 – Houston American Energy Corp. (AMEX: HGO) announces that operations have begun on its Baronet #3 well on its Crowley Prospect in Acadia Parish, Louisiana. This development well will be drilled to 12,000′ targeting the Hayes and Cib haz Sands. Reserve potential for these sands is estimated to be in the range of 15 to 20 bcf of natural gas and in excess of 100m barrels of oil. HGO originally owned a 2.25% Working Interest in this prospect, but has been able to increase its interest to a 15% Working Interest with a 11.25% Net Revenue Interest. Production facilities for the field are in place and the Baronet #3 is expected to be turned to sales within two to three months if the well is successful, therefore impacting 2007 second half results. Houston American’s cost for this well is estimated to be $950,000 and will be funded with available cash on hand. “I am very pleased to have been able to acquire additional interests in this well and prospect. This well represents a very good opportunity to increase reserves and cash flow and is the kind of opportunity that fits HGO’s business plan of increasing shareholder value through lower risk prospects. In addition the Bol mex Sand is a potential deeper target for another possible well and it has the potential to double the field’s reserves,” said John F. Terwilliger, Houston American Energy Corp’s President.
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 and Colombia. Additional information can be accessed by reviewing the December 31, 2004 Form 10-KSB, and its other periodic reports filed with the Securities and Exchange Commission. 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 Energy Corp., 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 additional information, view the company’s website at http://www.houstonamericanenergy.com or contact the Houston American Energy Corp. at (713) 222-6966.