Houston American Energy Increases Interest in Colombian CPO-11 Project

Rhea-AI Summary

Houston American Energy Corp. (HUSA) announced an acquisition of additional interest in Hupecol Meta, LLC, increasing its stake in the CPO-11 block in Colombia. This block covers nearly 1000 square miles and has multiple identified leads. HUSA now holds approximately 16% interest in the Venus Exploration area and 8% in the remaining block. The company operates two producing wells and plans a 3D seismic acquisition program to enhance development. CEO John Terwilliger expressed optimism regarding the acquisition and operational progress, emphasizing the potential for future drilling.

Positive

• Acquisition increases HUSA's interest in the CPO-11 block, enhancing growth potential.
• Two producing wells in the Venus Exploration area indicate operational progress.
• Planned 3D seismic acquisition program may support further development.

Negative

• Dependence on securing financing for drilling and completion costs.
• Risks associated with potential fluctuations in energy prices.

Houston, TX, Dec. 09, 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 16% interest in the Venus Exploration area and an approximately 8% interest in the remainder of the block.

In the Venus Exploration Area, Hupecol Meta now operates two producing wells, the Saturno ST1 and Venus 2A wells. A 3D seismic acquisition program is planned to support future development of the Venus Exploration Area.

John Terwilliger, CEO of Houston American, stated, “We are excited about the increase of our interest in the CPO-11 block, the progress made by Hupecol Meta to date and the outlook for development of the block. Hupecol Meta’s deep history of operating in Colombia is paying dividends with their securing permits to support drilling and production operations and favorable initial operating results on our first two wells. The commitment to move forward with a seismic acquisition program to support future development of the block reflects our belief in the potential of the block based on initial operating results on our first two wells.”

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 future performance of existing wells, 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 December 9, 2022?

Houston American Energy Corp. announced the acquisition of an additional interest in Hupecol Meta, LLC, increasing its stake in the CPO-11 block in Colombia.

What is the size and scope of the CPO-11 block owned by Hupecol Meta?

The CPO-11 block covers approximately 639,405 gross acres in the Llanos Basin, encompassing the Venus Exploration area and additional acreage.

What is Houston American Energy Corp.'s interest in the Venus Exploration area?

Houston American Energy Corp. holds approximately 16% interest in the Venus Exploration area.

What operations are currently underway in the Venus Exploration area?

Hupecol Meta operates two producing wells, the Saturno ST1 and Venus 2A wells, in the Venus Exploration area.

What future plans does Houston American Energy Corp. have for the CPO-11 block?

The company plans to conduct a 3D seismic acquisition program to support future development of the Venus Exploration area.