Houston American Energy Corp. Announces Participation in Two New Concessions in the Llanos Basin area of Colombia
Wednesday, December 1, 2004
HOUSTON, December 1, 2004 /PRNewswire-FirstCall/– Houston American Energy Corp. (OTC Bulletin Board: HUSA – News) announces that its affiliate in Colombia has acquired two new concessions in the Llanos Basin area of Colombia. Houston American will participate through this affiliate for a 12.5% Working Interest in both concessions. The concession areas total over 180,000 acres and require a royalty regime paid to the government agency of 5% to 20% depending on volumes of oil production and an additional 6% to 10% per concession when 5,000,000 barrels of oil have been produced on that concession. These numbers can vary based on oil pricing. Both concession contracts require aggressive exploration progress. The initial plans are to acquire approximately 88 square miles of 3D seismic data within the next 6 months and commence actual drilling operations on each concession within the next year. In addition to these two new concessions HUSA has interests in two other existing concessions in Colombia with 7 producing wells having current production of over 7500 barrels of oil per day gross and over 135 barrels net to Houston American. Two new 3D seismic grids are planned in the next 6 months on these already existing concessions and an aggressive drilling program is expected to follow the current ongoing development drilling on these concessions. “Houston American Energy Corp. is very pleased to be able to participate in these new opportunities and to the extent of a 12.5% Working Interest. This will greatly increase our exposure in Colombia and provide significantly more upside potential than we have experienced to date. The geology of these new areas is very similar and in fact quite close to the areas in which we have had our success up to this point. We are not only very excited about these new concessions but also about the new exploitation opportunities that have emerged on our currently producing concessions,” said John F. Terwilliger, Chairman, 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 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 company at (713) 222-6966.