Houston American Energy Logs Pay at Sugarland Prospect

Houston American Energy Corp. has a new discovery. Houston American's well on its Sugarland Prospect has reached total depth and based on electric log analysis 14' of pay has been found in the primary objective and an apparent 10' of pay in the secondary objective. Houston American owns an 8.25% Working Interest and a 6.1875% Net Revenue Interest until payout. The well is subject to a 25% Working Interest at payout.

"We are very pleased with this discovery as the well came in over 60' high to the downdip producer and was a complete geological success. A completion attempt will be underway immediately and if successful, this well will provide a significant boost to our cash flow beginning in early 2006. Houston American has had a very good year in 2005 in all aspects of its business and what a way to end the year with a nice discovery," said John F. Terwilliger, Chairman, Houston American Energy Corp.