Houston American Energy Acquires Stake in Hog Heaven Prospect in Texas

Houston American Energy has acquired a 4.375% Working Interest in the 500 acre Hog Heaven Prospect in Jim Hogg County, Texas. Houston American will pay 5.8334% of the costs to casing point on the first well and be heads up thereafter on the entire prospect which may result in as many as 6 wells. The well's primary objectives are the Pettus, Hockley and Yegua Formations and initial estimates of the prospect's potential are in excess of 1,000,000 barrels of oil. The proposed total depth of the first well is 6500' and drilling is expected to commence within 60 days subject to rig availability.

"This prospect was generated using 3D seismic technology and as a result the Operator believes that the initial well will be high to downdip wells that produced gas and or oil from some of the well's objective sands and where log and core data indicate potential pays in other sands. This is the kind of lower risk, close in, high potential prospect that fits Houston American's objectives," said John F. Terwilliger, Chairman, Houston American Energy Corp.