Houston American Enters Into Agreement With Nettlecombe Oil Company

Press Release
SOURCE: Houston American Energy Corp.
HOUSTON, TX, September 3, 2002
Houston American Energy Corp. (OTC:BB, symbol “HUSA”) today entered into an agreement with Nettlecombe Oil Company, Inc. whereby Nettlecombe will act as HUSA’s consultant under HUSA’s license agreement with Millennium Seismic for the generation and sale of prospects from Millennium’s seismic data base under license to HUSA. This agreement will provide HUSA with ongoing prospect generation activity with no additional overhead. Nettlecombe will use its best efforts to provide all necessary lease funding as well as selling the prospects generated to industry partners and/or third parties. As compensation to Nettlecombe for providing these consulting services, HUSA will share its profits and its retained interests in these prospects with Nettlecombe. HUSA may participate in the prospects generated under certain conditions with no compensation to Nettlecombe.
This agreement is non-exclusive and thus provides HUSA with the option of engaging other parties in similar agreements. Management is very pleased about this arrangement with Nettlecombe as it provides HUSA with ongoing prospect generating, leasing and sale of prospects at no further direct costs to HUSA. Therefore, HUSA will be promoting prospects as well as having prospects generated for its own participation by the staff and resources of Nettlecombe.
Prior to joining HUSA, the management of HUSA conducted business with Nettlecombe and its principals for over 10 years. During this time, Nettlecombe has generated numerous prospects and caused them to be drilled with many resulting as producers. Therefore, management believes that this agreement has the potential to produce significant value to HUSA over time.
Based in Houston, Texas, Houston American Energy Corp. is a natural resources development company with interests in oil and gas wells, and interests in oil and gas prospects. 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 FURTHER INFORMATION CONTACT: 713-222-6966, jft@houstonamericanenergy.com
SOURCE: Houston American Energy Corp.