HOUSTON, April 4, 2012 /PRNewswire/ -- Houston American Energy Corp (NYSE Amex: HUSA) today announced an operational update on the Company's CPO 4 block and status of the Tamandua #1 well.
The Company is currently eagerly awaiting the final results of the testing of the Tamandua #1 well and will announce the results as soon as they are available. During preliminary testing of the Tamandua #1 well, it has been determined that the C-9 and C-7 formations experienced formation damage as a result of the mud program used to control the well while drilling. This formation damage has resulted in a testing period longer than what was originally anticipated. Although there have been delays with the testing, the Company remains optimistic that these conditions will be overcome and that it will be able to establish a successful test on the Tamandua #1 well.
After testing of the Tamandua #1 well is complete, the drilling rig on location will be moved to the next prospect on CPO 4. All necessary preparations have been completed for the drilling rig to move to the next prospect and begin drilling. These preparations include completion of the surface location and all logistics related to the drilling of the well, including all permitting. It should also be noted, that the next prospect located on CPO 4 will be shallower than the Tamandua #1 well, and is anticipated to be drilled in less than 60 days once the drilling rig is on location.
The Company, through its operator, is currently in a long term contract with the drilling rig, and the Company looks forward to drilling several prospects in a row after the Tamandua #1 well. The CPO 4 block has in excess of 345,000 acres and the initial prospects targeted are independent conventional prospects. Due to the independent nature of these prospects, the results of any one single prospect will not have a significant impact on the other prospects located on the block. While the Company believes that the potential for a significant unconventional shale play may exist on the block, the current strategy of the operator and Houston American Energy is to focus on conventional prospects with estimated potential reserves ranging from 5.0 to 20.0+ million barrels. The Company is currently very excited about its inventory of prospects and looks forward to drilling the next wells located on CPO 4 after its expected test results on the Tamandua #1 well are complete.
About Houston American Energy Corp
Based in Houston, Texas, Houston American Energy Corp is an independent energy company with interests in oil and natural gas wells and prospects. The Company's business strategy includes a property mix of producing and non-producing assets with a focus on Colombia, Texas and Louisiana. Additional information can be accessed by reviewing our Form 10-K and other periodic reports filed 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.
Disclosures in this press release may contain forward-looking statements relating to anticipated or expected events, activities, trends or results. Forward-looking statements, can be identified by the use of forward looking terminology such as "believes," "suggests," "expects," "may," "goal," "estimates," "should," "likelihood," "plans," "targets," "intends," "could," or "anticipates," or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy or objectives. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. Forward-looking statements in this report include, without limitation, the Company's expectations of the results of testing, the timing of completion of testing and the timing of announcement of test results relating to the Tamandua #1 sidetrack well, the timing of commencement of subsequent wells and the time to drill those wells and the ultimate reserves realized from any wells. These statements are made to provide the public with management's current assessment of the Company's business, and it should not be assumed that actual results will prove these statements to be correct. Security holders are cautioned that such forward-looking statements involve risks and uncertainties. The forward-looking statements contained in this press release speak only as of the date of this press release, and the Company expressly disclaims any obligation or undertaking to report any updates or revisions to any such statement to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based. Certain factors may cause results to differ materially from those anticipated by some of the statements made in this release. Please carefully review our filings with the SEC as we have identified many risk factors that impact our business plan.
SOURCE Houston American Energy Corp