Houston American Energy Increases Interest in Colombian Project

Rhea-AI Summary

Houston American Energy Corp. (NYSE American: HUSA) has acquired an additional interest in Hupecol Meta, LLC, enhancing its position in the CPO-11 block in Colombia, covering approximately 639,405 gross acres. This includes the 69,128-acre Venus Exploration area and 570,277 acres partially farmed out to Parex Resources. Houston American now holds about 11% in Venus and 5.5% in the rest of the block. Drilling operations for its first well in the Venus area are underway, signaling the company's continued expansion and activity in the oil and gas sector.

Positive

• Acquisition of additional interest in Hupecol Meta enhances strategic positioning.
• Total interest now includes approximately 11% in Venus Exploration area.
• Ongoing drilling operations in the Venus Exploration area signal proactive engagement.

Negative

• Risks related to securing financing for drilling operations.
• Potential fluctuations in energy prices and operational costs could impact profitability.

Houston, TX, May 27, 2022 (GLOBE NEWSWIRE) -- Houston American Energy Corp. (NYSE American: HUSA) today announced the acquisition of an additional interest in Hupecol Meta, LLC. Hupecol Meta owns the 639,405 gross acre CPO-11 block in the Llanos Basin in Colombia, comprised of the 69,128 acre Venus Exploration area, operated by Hupecol, and 570,277 acres which was 50% farmed out to Parex Resources by Hupecol. In total, the CPO-11 block covers almost 1000 square miles with multiple identified leads and prospects expected to support a multi-well drilling program. Through its membership interest in Hupecol Meta, Houston American now holds an approximately 11% interest in the Venus Exploration area and an approximately 5.5% interest in the remainder of the block.

Drilling operations on Houston American’s first well in the Venus Exploration area are now ongoing.

About Houston American Energy Corp

Based in Houston, Texas, Houston American Energy Corp. is a publicly-traded independent energy company with interests in oil and natural gas wells, minerals and prospects. The Company's business strategy includes a property mix of producing and non-producing assets with a focus on the Delaware Basin in Texas and Colombia.

Forward-Looking Statements

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, including statements regarding the ultimate results of drilling operations and drilling of additional wells in the Venus Exploration Area. Those statements, and Houston American Energy Corp., are subject to a number of risks, including the potential inability to secure financing to fund Houston American’s share of drilling and completion costs, timing of drilling operations, ultimate drilling results, potential changes in drilling, completion and operating costs, potential fluctuations in energy prices, changes in market conditions, effects of government regulation and other factors. 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.houstonamerican.com or contact Houston American Energy Corp. at (713) 222-6966.

FAQ

What did Houston American Energy Corp. announce on May 27, 2022?

They announced the acquisition of an additional interest in Hupecol Meta, LLC, enhancing their holdings in the CPO-11 block in Colombia.

What is the significance of the CPO-11 block for HUSA?

The CPO-11 block covers nearly 1,000 square miles and includes multiple identified leads and prospects for drilling.

What is the current interest of HUSA in the Venus Exploration area?

Houston American Energy Corp. now holds approximately 11% interest in the Venus Exploration area.

Are there any risks associated with HUSA's new drilling operations?

Yes, potential risks include financing challenges, fluctuations in energy prices, and changes in operational costs.