Tuesday December 10, 2002, 8:03 a.m. Central Time
Press Release
SOURCE: Houston American Energy Corp.
Houston American Energy Corp. Announces New Drilling Activities and Retention of New PR Group
HOUSTON, TX, December 10/PRNewswire-First Call/ —
HOUSTON, Dec. 10 /PRNewswire-FirstCall/– Houston American Energy Corp. (OTC Bulletin Board: HUSA) announces new drilling activities and the retention of Duane Street Group to serve as it strategic public and investor relations agency. HUSA has currently signed agreements to participate in drilling programs in Texas and Colombia over the next two months. The Company has purchased a 0.035 working interest with a .02415 net revenue interest in 779 acres in Matagorda County, Texas where a 13,500′ Anomalina test with 100 bcf (billion cubic feet) to 200 bcf potential exploratory reserves will be drilled later this month. An additional 3-5 wells may be drilled depending on the results of the initial test. In addition, HUSA owns an option to participate on the same basis on another 672-acre prospect nearby.
HUSA has also acquired a working interest in a 357,000 acre concession in the Llanos Basin in Colombia. There is a slide royalty scale from 8% up to 5000 BOPD (Barrels of Oil Per Day) to 20% at 125,000 BOPD. The first well should be drilled within two weeks and will be drilled to 5500′ and there are seven additional prospects identified for future drilling. Engineers have given the concession over 120,000,000 barrels of oil potential. The Company also has a 5% non-participating royalty interest in Lavaca County, Texas which results in a 2.5% of 8/8’s revenue in the Mavis Wharton #3 well. This well is awaiting a pipeline connection.
In addition the Company has an aggressive drilling program and budget in 2003, which includes a 100% leasehold on an 80 acre tract in Jackson County, Texas. The Company anticipates detailing this program along with additional projects in the near future.
“We have four strong projects that we believe can position HUSA for significant revenue growth,” said John Terwilliger, Chairman and CEO. “Our focus to create sound fundamentals by assuming an interest in several attractive projects which also diversifies our risk.” Mr. Terwilliger further explained that, “the increased drilling activity caused us to evaluate our communication strategies. We felt Duane Street Group was the logical choice to partner with us as we execute our business plan and build a worldwide presence. Winners are drawn to winners and we feel confident that our projects and our new PR group will help us HUSA grow rapidly and maximize the return for our shareholders.” 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. 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 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.