HOUSTON, May 16, 2016 /PRNewswire/ -- Houston American Energy Corp. (NYSE Mkt: HUSA) (herein the "Company") today announced that its Board of Directors has approved the exploration of strategic alternatives by the Company. The Company intends to consider a broad range of strategic alternatives including, but not limited to, seeking acquisition candidates, a merger partner or sale of assets or the Company, among other alternatives.
The determination to explore strategic alternatives was made following notification from the operator of the project of further delays in securing the required environmental license to commence drilling operations on the Company's Serrania block in Colombia. As a result of local opposition and continued delays in issuance of the required license, the operator of the block is evaluating its rights, obligations and options with respect to the Serrania block. In light of the further delay in issuance of the license, the Company does not expect to commence drilling operations on the block during 2016 as previously planned.
Chief Executive Officer Mr. John Boylan commented, "Given the uncertainty as to timing and ultimate outcome of our current initiatives in Colombia, and delays in the consummation of our planned investment in Australian operator Tamboran Resources, management has determined that we should consider alternative strategies to build value for our stockholders including seeking an acquisition of significant oil and gas assets or a merger partner." Mr. Boylan continued, "To that end, we have retained a business development advisor and have commenced discussions with several entities to assist us in identifying strategic transactions. We believe that our simple capital structure with no debt makes our stock an attractive currency to acquire oil and gas assets or established operators seeking access to public capital markets.
"While we believe that there are attractive opportunities that will be available to execute one or more strategic transactions that will position us to take advantage of an anticipated future recovery in energy markets, such transactions may be highly dilutive and there can be no assurance that any such strategic transaction can be executed on acceptable terms or at all."
About Houston American Energy Corp.
Based in Houston, Texas, Houston American Energy Corp. is a publicly-traded independent energy company with interests in oil and natural gas wells, minerals and prospects. The Company's business strategy includes a property mix of producing and non-producing assets with a focus on Texas, Louisiana and Colombia.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements as to matters that are not of historic fact are forward-looking statements. These forward-looking statements are based on the Company's current expectations, estimates and projections about the Company, its industry, its management's beliefs and certain assumptions made by management, and include statements regarding the timing and ultimate ability to consummate a strategic transaction as well as statements regarding the timing and ultimate outcome of planned operations and investments in Colombia and Australia. No assurance can be given that such expectations, estimates or projections will prove to have been correct. Whenever possible, these "forward-looking statements" are identified by words such as "expects," "believes," "anticipates" and similar phrases.
Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Other important risk factors that may affect the Company's business, results of operations and financial position are discussed in its most recently filed Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and in other Securities and Exchange Commission filings. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. However, readers should review carefully reports and documents that the Company files with the Securities and Exchange Commission.
For additional information, view the company's website at www.HoustonAmericanEnergy.com or contact the Houston American Energy Corp. at (713) 222-6966.
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SOURCE Houston American Energy Corp.