Houston American Makes Discovery on Caddo Lake Prospect

The initial Caddo Lake Prospect well reached total depth of 10,000' on November 11, 2007. After electric logs, micro logs and sidewall core data had been received and evaluated the well appears productive in several Cotton Valley Sands as well as in the upper Hosston interval. The well will be hooked up to sales through the installation of a gas pipeline before further testing. Once connected to sales the well will be completed, and if successful turned to sales. Houston American will own a 27.25% Working Interest and 20.4375% Net Revenue Interest after payout of this well and on all further wells on the prospect. Up to payout HUSA will own a 33.5% Working Interest and 25.125% Net Revenue Interest. Funds for completion and hookup will come from HUSA's working capital.

"We are very pleased with this apparent discovery and have leasehold and option acreage in excess of another 100 well locations on 40 acre spacing if production from the well calls for more development. Production rates will need to be achieved and evaluated before assessing the full impact of this discovery to Houston American," said John F. Terwilliger, CEO, Houston American Energy Corp.