Houston American Energy Corp. Updates Wharton County Lease HOUSTON, Sept. 10 /PRNewswire-FirstCall/ — Houston American Energy Corp. (OTC Bulletin Board: HUSA – News) announces that it has sold its 50% Interest in its 270 acre leasehold in Wharton County, Texas to an independent exploration and production company. This is a three well prospect and the buyer has agreed to drill two wells to 4500′ to test the Middle Frio Formation. These wells are expected to be drilled in the next three months and Houston American Energy will be carried to casing point for a 9.5% Working Interest with a 7.125% Net Revenue Interest in each of these two wells. HUSA will participate in the third well by paying its share of the costs. Houston American has recovered its cash investment in the leases plus a profit approximately equal to its investment.
“This is a good example of our strategy of developing prospects in conjunction with industry partners and investors. This method of operation allows HUSA to broaden its domestic exposure without risking its capital,” 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 information can be accessed by reviewing the December 31, 2003 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 company at (713) 222-6966.