HOUSTON, Feb. 9, 2017 /PRNewswire/ — Houston American Energy Corp. (NYSE MKT: HUSA) today announced that it has completed the acquisition of a 25% working interest in two lease blocks covering 717.25 acres in Reeves County, Texas.
The interest was acquired from Founders Oil & Gas III, LLC for a purchase price of $5,500 per net mineral acre, or a total of $986,000. Additional adjacent acreage is expected to be acquired in the coming weeks by Founders, with Houston American acquiring an interest in the same, to bring the total acreage position to approximately 800 gross acres. Founders will serve as operator of the acreage with drilling of an initial well expected to commence by July 1, 2017 targeting potential resources in the Delaware Basin (which is a sub-basin of the Permian Basin) located in west Texas.
John P. Boylan, CEO and President of Houston American stated, “We are very excited to have consummated this acquisition and look forward to commencing drilling and to the prospect of developing a long-term relationship with Founders. Since our agreement to acquire this position, our further evaluation of the acreage, together with recent announcements of multi-billion dollar acquisitions in, and entries into, the Permian Basin by a number of world-class operators, has bolstered our belief in the potential of these properties.”
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.