HOUSTON, Jan. 31, 2017 /PRNewswire/ -- Houston American Energy Corp. (NYSE MKT: HUSA) today announced that it has completed a private placement of $1.2 million of 12.0% Series A Convertible Preferred Stock.
Funds from the offering will be used to complete the previously announced acquisition from Founders Oil & Gas III, LLC of a 25% working interest in two lease blocks covering approximately 800 acres in Reeves County, Texas in the Permian Basin.
John P. Boylan, CEO and President of Houston American stated, "This equity raise provides Houston American with capital needed to complete our acquisition from Founders and to move forward with our plans to further develop our relationship and to pursue opportunities in the Permian Basin. We expect to complete our working interest acquisition from Founders shortly and plan to commence drilling of our first horizontal well on the acquired acreage near the end of the 2nd Quarter of 2017. We are very excited about these properties and their potential to accommodate multiple resource development wells. We believe the properties represent a strong start to our plans to build a portfolio of assets in the Permian Basin."
This news release does not constitute an offer to sell or solicitation of an offer to buy any securities.
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.
The information in this release includes certain forward-looking statements that are based on assumptions that in the future may prove not to have been accurate, including statements regarding the timing of acquisition of acreage and drilling an initial well, the properties' potential to accommodate multiple resource development wells and Houston American's ability to secure additional Permian Basin opportunities. Those statements, and Houston American Energy Corp., are subject to a number of risks, including the potential inability to secure financing to fund Houston American's share of drilling costs, timing of drilling operations and ultimate drilling results, among other factors. These and other risks are described in the company's documents and reports that are available from the company and the United States 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.