Houston American Energy Begins New Project in Colombia

Houston American Energy has elected to participate on a ground floor basis in the acquisition of over 3000 kilometers of seismic data in Colombia covering in excess of 20 million acres.

Prospect mapping has already begun and as a result management believes that this data, which covers some key areas, will result in drilling opportunities in 2004. Houston American Energy will participate for a 12.5% interest through an LLC company that is managing this geological and geophysical effort as well as managing the two other concessions in Colombia in which Houston American Energy has an interest.

Management is very pleased with this opportunity since it provides the company with major exploration upside potential on a non-promoted basis and all of the work is essentially out sourced. This keeps with Houston American's business model of maintaining a low overhead and yet having significant upside exposure in diversified projects. Management believes it will have the available funds to meet its capital commitments for this project.