HOUSTON, July 25, 2013 /PRNewswire/ -- Houston American Energy Corp. (NYSE MKT: HUSA) today announced that it has agreed to participate in drilling a 10,000' test well in Pecos County, Texas.
The well, sited on a 725 acre lease block, is planned to test the Devonian chert and Strawn formation targeting potential oil pay. The block is expected to accommodate multiple offset locations should the test be successful.
Houston American will hold a 10% working interest after the casing point in the test well and in the entire lease block. Houston American's costs in the test well are expected to be $400,000 or less which will be funded from working capital. Drilling operations are expected to begin in September 2013.
The well operator has drilled over 100 wells on similar prospects on trend.John F. Terwilliger, Chairman and CEO of Houston American Energy, stated, "While we remain focused on our large blocks in Colombia, we have been pursuing domestic opportunities where we can add shareholder value. We believe the Pecos County well offers such an opportunity given the favorable track record and economics of wells drilled by the operator on trend. We are evaluating additional opportunities to participate in other prospects with the operator. As we continue to build a pipeline of what we believe to be attractive prospects, we expect our drilling activities in the United States to gain momentum." About Houston American Energy Corp. Based in Houston, Texas, Houston American Energy Corp is an independent energy company with interests in oil and natural gas wells and prospects. The Company's business strategy includes a property mix of producing and non-producing assets with a focus on Colombia, Texas and Louisiana. Additional information can be accessed by reviewing our Form 10-K and other periodic reports filed with the Securities and Exchange Commission.