Houston American Energy Corp. Announces Acquisition in Colombia Tuesday January 30, 11:21 am ET
HOUSTON, Jan. 30 /PRNewswire-FirstCall/– Houston American Energy Corp. (OTC Bulletin Board: HUSA – News), a Houston-based energy company announced today that it has acquired a 12.5% working interest with an 11.25% net revenue interest in the Tambaqui Association Contract in Colombia. This concession is subject to a reversionary interest by Ecopetrol, the state owned oil company. The most likely result of this reversionary interest is a 50% working interest back-in after Houston American Energy Corp. recovers in excess of four times its total investment.
This concession covers approximately 90,000 acres and engineers have assigned in excess of 500,000 barrels of oil as proved producing reserves and over 7,400,000 barrels of oil as proved undeveloped reserves. In addition to the existing producing well, the Company expects to drill as many as three development wells offsetting existing production with the first well expected to be drilled in March.
“This project is custom-tailored for our goals,” stated John F. Terwilliger, President of Houston American Energy Corp. “Based on current production rates and oil prices, we believe that this acquisition will add approximately $120,000 of cash flow to the Company in 2003. This acquisition is a very important step forward for our Company.” In addition, the Company has signed an agreement with its industry partners in this concession that provides for each to participate for a 12.5% interest in each other’s new projects in Colombia at cost. The term of this agreement is five years. Management believes this will provide the Company with a number of additional opportunities in Colombia on a ground floor basis. The Company’s first well on its Cara Cara Project in Colombia has been tested and is expected to go on production in a few weeks after the surface and production facilities are in place. Management will release detailed results once production has been established.
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, 2001 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 www.houstonamericanenergy.com or contact the Duane Street Group at 713-706-6240. Source: Houston American Energy Corp.