Houston American Energy Corp (Houston American), incorporated on April 2, 2001, is an independent oil and gas company focused on the development, exploration, exploitation, acquisition, and production of natural gas and crude oil properties in the United States Gulf Coast region and in South America. The Company’s oil and gas reserves and operations are concentrated in the South American country of Colombia and in the onshore Gulf Coast region, particularly Texas and Louisiana. The Company, along with its partners, manages its resources through acquisitions and divestitures where reserves can be identified, developed, monetized and financial resources redeployed with the objective of growing reserves, production and shareholder value. During the year ended December 31, 2011, the Company participated in the drilling of a total of 13 gross wells, all of which were in Colombia. Of the 13 wells drilled, 11 were classified as exploratory and two were classified as development.
United States Properties
In the United States, the Company’s properties and operations are located in the on-shore Gulf Coast region of Louisiana and Texas. Its producing and exploration properties in Louisiana consist of East Baton Rouge Parish, Plaquemines Parish and Vermilion Parish. It holds a 37.5% working interest in the Profit Island and North Profit Island prospects, covering 3,805 gross acres in East Baton Rouge Parish, Louisiana. In addition, it holds a 7.29% royalty interest in 2,485 royalty acres, as well as a 5.675% royalty interest in the Crown Paper #01 well. It holds a 1.8% working interest in the SL 180771 well and prospect, which covers 300 gross acres. It holds a 2.25% working interest in the 830 acre La Furs, Inc. F-16 well and prospect. Its principal exploration properties in Texas consist of Jim Hogg County and Matagorda Country. The Company holds a 4.375% working interest in the 340 acre Hog Heaven Prospect in Jim Hogg County, Texas. As of December 31, 2011, the Hog Heaven Prospect produced gas from a single 6,200-foot well. It holds a 3.5% working interest in the 779 acre Harrison Prospect in Matagorda County, Texas.
As of December 31, 2011, the Company held interests in multiple prospects in Colombia covering 825,657 gross acres. Its holdings in Colombia are located within the Llanos and the Caguan Putumayo Basins. As of December 31, 2011 it held interests in five concessions operated by Hupecol. The La Cuerva and LLA 62 concessions are located in the Llanos Basin of Colombia and the Loc Picachos, Macaya and Serrania concessions are located in the Caguan Putumayo Basin of Colombia. The concessions cover an aggregate area of 480,205 acres. As of December 31, 2011, it had interests in 14 gross wells (0.22 net wells) in the La Cuerva block operated by Hupecol. Pursuant to two Farmout Agreements and a Joint Operating Agreement, it holds an interest in the 345,452 acre CPO 4 Block located in the Western Llanos Basin and operated by SK Innovation. As of December 31, 2011, it held a 37.5% interest in the CPO 4 Block. In July 2011, it commenced drilling operations on the first well on the CPO-4 Block, the Tamandua #1. As of December 31, 2011, the Tamandua #1 sidetrack well had been drilled to 13,989 feet. As of March 1, 2012, the Tamandua #1 sidetrack well was drilled to total depth of 15,562 feet.