HOUSTON, Jan. 2, 2019 /PRNewswire/ -- Houston
American Energy Corp. (NYSE American: HUSA) today announced that it
has leased to a third party operator its interest in mineral
acreage in East and West Baton Rouge Parishes in Louisiana.
The leased acreage covers 743.94 gross acres (174.26 acres net
to HUSA's interest) out of a larger 2,485 gross acre block (582.42
acres net to HUSA's interest). The larger block is the site
of HUSA's Crown Paper #1 well.
Pursuant to the terms of the lease, the operator has paid a
lease bonus of $600 per acre, or
$104,616 to HUSA. The lease is
subject to a 22.5% royalty, which royalty interest is subject to
production and ad valorem taxes but is not burdened by other
costs. As a result, HUSA will have an approximate 5.27% cost
free interest, other than taxes, in all wells drilled exclusively
on the leased acreage.
The operator/lessee has indicated that it plans to drill an
initial well on the leased acreage to test the Lower Tuscaloosa
Formation below 19,000 ft. The Tuscaloosa Formation has been
characterized by thick multiple intervals with long life
production. Other Lower Tuscaloosa fields in the area are Port
Hudson, Alsen, Irene, South Irene and Profit Island.
Jim Schoonover, interim CEO of
Houston American Energy, stated: "We are excited to have partnered
with an operator to develop this lease. We believe two wells will
be needed to test the Lower Tuscaloosa Formation. However,
the number of wells drilled will ultimately be at the sole
discretion of the operator.
"This project has the potential to add meaningfully to our
reserves, production and revenue. We are looking forward to
drilling the planned test well to prove up that
potential."
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 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 the
number and depth of test wells to be drilled as well as the
ultimate number of wells drilled on the acreage, the timing of
drilling and the results of drilling operations, including the
potential addition of reserves, production and revenue. Each of
such statements is subject to numerous risk factors, including the
ability of the operator to finance and execute on planned drilling
operations, the ultimate recoveries from the prospect, the
availability and cost of rigs and services necessary to conduct
drilling operations, among other risks described in our reports
filed with the 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.
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SOURCE Houston American Energy Corp.