Houston American Energy Corp Announces New Domestic Project
Houston American Energy Corp (HUSA) has agreed to participate in the Caddo Lake Prospect in Caddo Parish, Louisiana and to drill a test well to 10,000’ to test the Cotton Valley Formation as well as the Pettit and Travis Peak Formations. The initial well will be drilled on a 640 acre leasehold, and HUSA has the option to acquire within one year of establishing production its share of an additional lease covering 4,400 acres. HUSA will pay 35% of the costs of the initial well and have a 33.5% Working Interest (25.125% Net Revenue Interest) until well payout. After well payout, HUSA will own a 27.25% Working Interest and 20.4375% Net Revenue Interest. On all additional well costs after the initial well and on all additional lease costs, HUSA will have a 27.25% Working Interest with a 20.4375% Net Revenue Interest. The initial well is expected to spud by October 15, 2007. The location has been constructed and the rig is preparing to move to the well site. HUSA’s costs for this initial well and leasehold acreage will total approximately $750,000 if the well is completed, and will be funded with Houston American’s available working capital.
“We are very pleased to be able to participate in the Caddo Lake Prospect and believe that this unexploited area within the heart of Cotton Valley Trend should provide future growth for HUSA’s domestic activities. The initial well is planned to twin an old well that was drilled in 1950 that tested gas in the Travis Peak and Cotton Valley Formations. There was no market for natural gas at the time and the well was plugged back to a shallow oil formation before attempting any completion. We feel fortunate to be part of a group controlling a large acreage position in this trend. Depending on ultimate well spacing, the potential for in excess of 100 well locations may develop,” said John F. Terwilliger, CEO, Houston American Energy Corp.
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, 2006 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.