HOUSTON, Oct. 26, 2017
/PRNewswire/ -- Houston American Energy Corp. (NYSE American:
HUSA) today reported that its O'Brien #3H well (12.5% w.i.), a
4,575' lateral Upper Wolfcamp A well, in its southern
Reeves County Riverbend project area, is now connected to a gas
sales line enabling the sale of first production. During a
previously announced test, conducted prior to completion of the gas
flowline, the well produced 359 BO/D and 4,077 MCF/D (1,039 BOE/D).
The well, now on line, is expected to reach peak rate within the
next thirty days. The company's second well, the Johnson
#1H, also completed in the Upper Wolfcamp A, is shut in
awaiting completion of a seven-mile gas sales line and is
currently expected to begin selling production by early to
mid-November.
With the nearing completion of gas gathering infrastructure
servicing its Johnson acreage and third party development of nearby
saltwater disposal infrastructure under development and expected to
be operational by January 2018, the
company anticipates that all critical company infrastructure is now
in place, and third party infrastructure will soon be in place, to
support a multi-well drilling program. Such in-place
infrastructure is expected to greatly reduce cycle time between
completion of wells and actual sale of production and offer
economies of scale associated with higher production volumes and
spreading field-wide capex investments to date over multiple
wells.
John Boylan, Houston American's CEO and Chairman, said, "We
are pleased that test flow rates have exceeded our acquisition type
curve and that our O'Brien well is online. With the short delay in
completion of gas gathering infrastructure and commencement of gas
sales, along with the expected timing for completion of saltwater
disposal facilities, we anticipate that drilling of our next two
Reeves County wells will be moved
back to early 2018. In the meantime, with revenue and cash flow
ramping from our first well and expected commencement of production
from our second well, we are evaluating additional acreage
acquisitions in Reeves County that
can be material to our inventory of undrilled core locations and
NAV per share. Our industry peers, led by our larger peers, have
continued to make substantial investments in the Reeves/Ward
County play, as evidenced by a 156% increase in rig count
over the past twelve months, and are seeing prospectivity near our
acreage across five zones, including the Bone Spring. Those
developments, along with our initial well results, continue to
support our excitement about our core acreage position in the heart
of the Reeves/Ward County play."
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 Permian (Delaware) Basin in
Texas, Louisiana 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
ultimate production rates; commencement of production of the
Johnson #1H well; timing and adequacy of infrastructure projects;
timing and scale of a multi-well drilling program; achievement of
economies of scale; timing of drilling additional wells in
Reeves County and results of such
drilling activities; ability to acquire additional acreage, or the
terms of any such acquisitions; and future drilling activity and
results in Reeves County. 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 well costs, timing of drilling operations, ultimate
drilling results, potential changes in production rates,
fluctuations in energy prices, fluctuations in drilling and
operating costs, 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 or Raymond Deacon,
CFA at (917) 477-7800.
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SOURCE Houston American Energy Corp.