trades american stock exchange: “hgo” may 2007 houston american energy corp
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2
HOUSTON AMERICAN ENERGY
Disclaimer
This presentation material contains forward-looking statements within the meaning of Section 27a of the
Securities Act of 1933, as amended, and Section 21e of the Securities Exchange Act of 1934, as amended.
The opinions, forecasts, projections or other statements, other than statements of historical fact, are
forward-looking statements. Although the company believes that the expectations reflected in such
forward-looking statements are reasonable, they do involve a number of risks and uncertainties. Among
the important factors that could cause actual results to differ materially from those indicated by such
forward-looking statements are delays and difficulties in developing currently owned properties, the failure
of exploratory drilling to result in commercial wells, delays due to the limited availability of drilling
equipment and personnel, fluctuations in oil and gas prices, general economic conditions and the risk
factors detailed in our periodic reports and registration statements filed with the Securities and Exchange
Commission.
3
HOUSTON AMERICAN ENERGY
Executive Summary
Houston American Energy Corp Snapshot
Houston, TX Office:
Houston American Energy801 Travis, Suite 2020Houston, TX 77002
Trading Overview
Stock Symbol – AMEX: HGO
Current Share Price (as of 4/21/2007) – US $5.45
Fully Diluted Shares Outstanding – 27.8 million
Market Capitalization – $151.5 million
Long Term Debt – $0.0 million
Average 3 Month Daily Volume ~ 100,000
Insider Ownership – 47.0%
4
HOUSTON AMERICAN ENERGY
Company Overview
• Houston American is a growth-oriented independent energy company engaged in the exploration, development and production of crude oil and natural gas resources
• Focused operations in Colombia and U.S. Onshore Gulf Coast region
Current production of approximately 500 barrels of oil equivalent per day
Participated in drilling of 38 wells in Colombia and 19 wells in the Gulf Coast to date
• Significant concessions in Colombia with substantial drilling inventory identified by advanced 3-D seismic interpretation
Over 790,000 gross acres with more than 100 currently identified drilling locations
Plan to participate in 31 wells in Colombia during 2007
5
HOUSTON AMERICAN ENERGY
Management and Board of Directors
John F. Terwilliger Chairman and Chief Executive Officer30 years of oil and gas
experience
James J. JacobsChief Financial Officer, and Director of New Business
Development
8 years of finance and
oil and gas experience
O. Lee Tawes, IIIExecutive Vice President, Northeast Securities;
Director, Baywood International
35 years of finance
experience
Edwin C. Broun, III Founder, Broun Energy, LLC
30 years of engineering
and oil and gas
experience
Stephen P. Hartzell Founder, Southern Star Exploration, LLC27 years of petroleum
geology experience
John P. Boylan
Founder, Boylan Energy Corporation,
Ex CEO of Birdwell Partners and Ex CFO Atasca
Resources
15 years of accounting
and oil and gas
experience
1. Not a member of the Board of Directors
6
HOUSTON AMERICAN ENERGY
Business Strategy
• Explore and develop existing properties through the drillbit
Increase production and cash flow by drilling and completing identified well locations
Quantify value of our asset base through an aggressive testing and drilling program
Explore for and develop additional proved reserves on our 69,267 net acres
• Acquire additional interest in oil and gas properties through partnerships and joint ventures with experienced operators
Target acquisitions that enhance our core areas
Focus on high impact, lower risk drilling prospects
• Capitalize on the expertise, experience and strategic relationships of the management team and board of directors
7
HOUSTON AMERICAN ENERGY
Overview of Colombia
• President Alvaro Uribe Velez (re-elected
May 28, 2006) – Pro Business
• Main US ally in South America
• Population: 41,262,948
• Capital Bogotá: 7,000,000 citizens
• Exchange rate 2007: 2,210 COP$/US$
• Gross domestic product, GDP, 2005:
US$ 122.3 Billion
• Current Production of 530,000 barrels of oil
equivalent per day
• Estimated 1.8 billion barrels of oil equivalent
reserves remaining
Colombia
8
HOUSTON AMERICAN ENERGY
Overview of Colombia (continued)
• Colombia is currently a net exporter (approximately 325,000
bbls/d) of crude oil, but the country's reserves and production
are declining
• To combat this decline, the Colombian government enacted a number of incentives aimed at attracting foreign investment in 2004:
Sliding scale royalty rates based on field size, with an
8% royalty rate for most fields
Government allows 100% company ownership of
production projects
Eliminated government back-in rights on new
concessions
Vastly improved security environment - President Uribe
on offensive with broad popular support. Military
increased 273,000 to 370,000 personnel in 2 years.
US assistance at US$600 million/year
Progressive Colombia fiscal changes similar to those in
UK which spurred renewed interest in the North Sea
• Additionally, Colombia is moving away from other leftist
countries in South America and is considering selling up to
20% of Ecopetrol, its State run oil company
• Colombia has a well developed infrastructure system
comprising of over 3,700 miles of crude and product pipelines.
This system is concentrated on transporting crude from the
main producing basins (Llanos and Magdalenas)
International E&P Fiscal Regimes
0
200
400
600
800
1,000
Tho
usan
ds o
f bar
rels
per
day
Production
Consumption
Net Exports
Colombia’s Oil Production/Consumption
Source: EIA, Herolds
Source: PEPS-UGS and calculations ANH
9
HOUSTON AMERICAN ENERGY
Llanos Basin
• The Llanos Basin covers an area of approximately 125,000 square miles
• Its primary geologic formations are: the Upper Cretaceous, Paleocene and Eocene
• There are currently more than 25 operators located in the Llanos Basin
Colombia
Source: Wood Mackenzie
Other Llanos Basin Operators
• The Llanos Basin is one of the most active basins in Colombia
• 22 exploration wells were drilled in Colombia during 2004, with the largest field discovery in the Llanos Basin, discovered by the Bengala 2 well (Hupecol well)
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HOUSTON AMERICAN ENERGY
• Operator: Hupecol
• Hupecol has acquired significant concessions in
the Llanos Basin since starting the company in
April 2001. The following are HGO’s effective
working interests based on its indirect ownership
interests in Hupecol:
Estimated net EUR to HGO of identified Colombian
prospects >80mmboe
Two rigs currently running with existing
infrastructure in place
Completion rig under contract as of March 2007
• Current net production of 450 boe/d
Colombia Operations
•Cara Cara 1.6% W.I.
•Tambaqui 12.6% W.I.
•Dorotea 12.5% W.I.
•Leona 12.5% W.I.
•Cabiona 12.5% W.I.
•Surimena 6.25% W.I.
•Caramita 12.5% W.I.
•Las Garzas 12.5% W.I.
Colombia Operations
11
HOUSTON AMERICAN ENERGY
• HGO’s operations are primarily focused in the Llanos
Basin in Colombia, where it has assembled leases for
68,303 net acres in multiple project areas1
• HGO’s proved reserve acreage represents less than 1%
of its total acreage position in Colombia. 2
• Hupecol currently has a seismic inventory covering
approximately 195,000 acres, with additional seismic
shoots underway on an estimated 75 square miles.
Additional 3D seismic planned for early 2008.
1. Based on the company’s 12/31/05 10-K.
2. Based on total acreage of 105,418 as of the 12/31/05 10-K
Colombia Acreage Overview
Colombian Gross
Project Acreage
Cara Cara 232,500
Tambaqui 4,403
Dorotea 51,321
Cabiona 86,066
Surimena 69,189
Las Garzas 103,784
Leona 70,343
Caramita 166,301
Total 783,907
Proved Reserve Distribution 2
Acreage Remaining
Acreage
Assigned
Proven
Reserves,
<1% of
total
12
HOUSTON AMERICAN ENERGY
0
50
100
150
200
250
300
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 1
0
Year 1
1
Year 1
2
Year 1
3
Year 1
4
Year 1
5
Net
Mb
bl p
er y
ear
• Well Cost: $1,500,000 - $2,500,000
• Reserves Per Well: 1.0 - 4.0 MMboe
• F&D Cost: $0.38 - $2.50/ boe
• Reserve Life: 10 - 15 years
• IRR at $60/bbl, $2,500,000 well cost:
2,000 BOE per day, ~1,000%
1,500 BOE per day, ~750%
1,000 BOE per day, ~500%
• Payback: Approximately 2 - 6 months
Typical Well Decline Curve, 1.5 MMboe
Forecasted Well Economics - Colombia
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HOUSTON AMERICAN ENERGY
Forecasted Well Economics – Colombia (continued)2,500 barrels per day and $60.00 WTI pricing
Assumptions: Economics: Total Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
Lifting Cost ($/bbl) $3.00 Capital Cost ($M) 2,500$ Colombia Overhead ($/bbl) $0.10 WTI Oil Price 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ Transportation Cost $7.00 Realized Oil Price at Point of Sale 54.00$ 54.00$ 54.00$ 54.00$ 54.00$ 54.00$ 54.00$ 54.00$ 54.00$ 54.00$ 54.00$ WTI Differential 90.0% End Period Prod (bbl/d) 2047 1676 1372 1123 920 753 616 505 413 338 277Colombian Income Tax 34.0% Decline (% of Year 1) 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%Initial Peak Production (bls/d) 2,500 Net Production (mbbl) 4,051 736 603 493 404 331 271 222 182 149 122 100Net Revenue Interest 89.0% Revenue ($M) $218,730 $39,748 $32,543 $26,644 $21,814 $17,860 $14,622 $11,972 $9,802 $8,025 $6,570 $5,379Decline Rate #1 20.0% LOE ($M) $12,152 $2,208 $1,808 $1,480 $1,212 $992 $812 $665 $545 $446 $365 $299Discount Rate 10.0% Overhead ($M) $457 $83 $68 $56 $46 $37 $31 $25 $20 $17 $14 $11
DD&A ($M) $2,500 $454 $372 $305 $249 $204 $167 $137 $112 $92 $75 $61Transportation Cost $28,354 $5,152 $4,218 $3,454 $2,828 $2,315 $1,895 $1,552 $1,271 $1,040 $852 $697Net Income Pre Tax ($M) $175,268 $31,850 $26,076 $21,349 $17,479 $14,311 $11,717 $9,593 $7,854 $6,430 $5,265 $4,310
Initial Capital Costs $2,500,000 Colombian Income Tax ($39,896) $0 $0 ($7,259) ($5,943) ($4,866) ($3,984) ($3,262) ($2,670) ($2,186) ($1,790) ($1,466)Gross Reserves (Bbl) 4,050,560 Cash Flow ($M) (adds back DDA) $137,872 $32,304 $26,448 $14,395 $11,786 $9,649 $7,900 $6,468 $5,296 $4,336 $3,550 $2,906
Cash Flow ($/Bbl) $34.04 $43.89 $43.89 $29.18 $29.18 $29.18 $29.18 $29.18 $29.18 $29.18 $29.18 $29.18Finding and Discounted Cash Flow ($M) $93,511 $29,367 $21,858 $10,815 $8,050 $5,991 $4,459 $3,319 $2,470 $1,839 $1,369 $1,019
Development Costs ($/ Bbl) $0.62 Incremental F&D ($/Bble) $0.62
NPV ($M) $93,511*Assumes 30 year life, 92.0% NRI NPV/Bbl $23.09
IRR Calculation ($2,500) $32,304 $26,448 $14,395 $11,786 $9,649 $7,900 $6,468 $5,296 $4,336 $3,550 $2,906IRR 1272%
HGO Cash Flow Per Well ($M) (12.5% WI) (1) $4,038 $3,306 $1,799 $1,473 $1,206 $988 $809 $662 $542 $444 $363Cash Flow Per Share to HGO (28.0MM Shares) $0.14 $0.12 $0.06 $0.05 $0.04 $0.04 $0.03 $0.02 $0.02 $0.02 $0.01(1) Net Cash Flow before Corporate Overhead.
Economics of Typical Colombian Well
14
HOUSTON AMERICAN ENERGY
Forecasted Well Economics – Colombia (continued)2,000 barrels per day and $60.00 WTI pricing
Assumptions: Economics: Total Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
Lifting Cost ($/bbl) $3.00 Capital Cost ($M) 2,500$ Colombia Overhead ($/bbl) $0.10 WTI Oil Price 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ Transportation Cost $7.00 Realized Oil Price at Point of Sale 54.00$ 54.00$ 54.00$ 54.00$ 54.00$ 54.00$ 54.00$ 54.00$ 54.00$ 54.00$ 54.00$ WTI Differential 90.0% End Period Prod (bbl/d) 1637 1341 1098 899 736 602 493 404 331 271 222Colombian Income Tax 34.0% Decline (% of Year 1) 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%Initial Peak Production (bls/d) 2,000 Net Production (mbbl) 3,240 589 482 395 323 265 217 177 145 119 97 80Net Revenue Interest 89.0% Revenue ($M) $174,984 $31,798 $26,034 $21,315 $17,451 $14,288 $11,698 $9,577 $7,841 $6,420 $5,256 $4,303Decline Rate #1 20.0% LOE ($M) $9,721 $1,767 $1,446 $1,184 $970 $794 $650 $532 $436 $357 $292 $239Discount Rate 10.0% Overhead ($M) $365 $66 $54 $44 $36 $30 $24 $20 $16 $13 $11 $9
DD&A ($M) $2,500 $454 $372 $305 $249 $204 $167 $137 $112 $92 $75 $61Transportation Cost $22,683 $4,122 $3,375 $2,763 $2,262 $1,852 $1,516 $1,242 $1,016 $832 $681 $558Net Income Pre Tax ($M) $139,714 $25,389 $20,787 $17,019 $13,934 $11,408 $9,340 $7,647 $6,261 $5,126 $4,197 $3,436
Initial Capital Costs $2,500,000 Colombian Income Tax ($31,803) $0 $0 ($5,786) ($4,737) ($3,879) ($3,176) ($2,600) ($2,129) ($1,743) ($1,427) ($1,168)Gross Reserves (Bbl) 3,240,448 Cash Flow ($M) (adds back DDA) $110,411 $25,843 $21,159 $11,537 $9,446 $7,733 $6,332 $5,184 $4,244 $3,475 $2,845 $2,329
Cash Flow ($/Bbl) $34.07 $43.89 $43.89 $29.23 $29.23 $29.23 $29.23 $29.23 $29.23 $29.23 $29.23 $29.23Finding and Discounted Cash Flow ($M) $74,870 $23,494 $17,486 $8,668 $6,451 $4,802 $3,574 $2,660 $1,980 $1,474 $1,097 $816
Development Costs ($/ Bbl) $0.77 Incremental F&D ($/Bble) $0.77
NPV ($M) $74,870*Assumes 30 year life, 92.0% NRI NPV/Bbl $23.10
IRR Calculation ($2,500) $25,843 $21,159 $11,537 $9,446 $7,733 $6,332 $5,184 $4,244 $3,475 $2,845 $2,329IRR 1014%
HGO Cash Flow Per Well ($M) (12.5% WI) (1) $3,230 $2,645 $1,442 $1,181 $967 $791 $648 $531 $434 $356 $291Cash Flow Per Share to HGO (28.0MM Shares) $0.12 $0.09 $0.05 $0.04 $0.03 $0.03 $0.02 $0.02 $0.02 $0.01 $0.01(1) Net Cash Flow before Corporate Overhead.
Economics of Typical Colombian Well
15
HOUSTON AMERICAN ENERGY
Forecasted Well Economics – Colombia (continued)1,500 barrels per day and $60.00 WTI pricing
Assumptions: Economics: Total Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
Lifting Cost ($/bbl) $3.00 Capital Cost ($M) 2,500$ Colombia Overhead ($/bbl) $0.10 WTI Oil Price 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ Transportation Cost $7.00 Realized Oil Price at Point of Sale 54.00$ 54.00$ 54.00$ 54.00$ 54.00$ 54.00$ 54.00$ 54.00$ 54.00$ 54.00$ 54.00$ WTI Differential 90.0% End Period Prod (bbl/d) 1228 1005 823 674 552 452 370 303 248 203 166Colombian Income Tax 34.0% Decline (% of Year 1) 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%Initial Peak Production (bls/d) 1,500 Net Production (mbbl) 2,430 442 362 296 242 198 162 133 109 89 73 60Net Revenue Interest 89.0% Revenue ($M) $131,238 $23,849 $19,526 $15,986 $13,088 $10,716 $8,773 $7,183 $5,881 $4,815 $3,942 $3,228Decline Rate #1 20.0% LOE ($M) $7,291 $1,325 $1,085 $888 $727 $595 $487 $399 $327 $267 $219 $179Discount Rate 10.0% Overhead ($M) $274 $50 $41 $33 $27 $22 $18 $15 $12 $10 $8 $7
DD&A ($M) $2,500 $454 $372 $305 $249 $204 $167 $137 $112 $92 $75 $61Transportation Cost $17,012 $3,091 $2,531 $2,072 $1,697 $1,389 $1,137 $931 $762 $624 $511 $418Net Income Pre Tax ($M) $104,161 $18,928 $15,497 $12,688 $10,388 $8,505 $6,963 $5,701 $4,668 $3,822 $3,129 $2,562
Initial Capital Costs $2,500,000 Colombian Income Tax ($23,710) $0 $0 ($4,314) ($3,532) ($2,892) ($2,368) ($1,938) ($1,587) ($1,299) ($1,064) ($871)Gross Reserves (Bbl) 2,430,336 Cash Flow ($M) (adds back DDA) $82,951 $19,382 $15,869 $8,679 $7,105 $5,817 $4,763 $3,900 $3,193 $2,614 $2,140 $1,752
Cash Flow ($/Bbl) $34.13 $43.89 $43.89 $29.32 $29.32 $29.32 $29.32 $29.32 $29.32 $29.32 $29.32 $29.32Finding and Discounted Cash Flow ($M) $56,228 $17,620 $13,115 $6,520 $4,853 $3,612 $2,689 $2,001 $1,489 $1,109 $825 $614
Development Costs ($/ Bbl) $1.03 Incremental F&D ($/Bble) $1.03
NPV ($M) $56,228*Assumes 30 year life, 92.0% NRI NPV/Bbl $23.14
IRR Calculation ($2,500) $19,382 $15,869 $8,679 $7,105 $5,817 $4,763 $3,900 $3,193 $2,614 $2,140 $1,752IRR 755%
HGO Cash Flow Per Well ($M) (12.5% WI) (1) $2,423 $1,984 $1,085 $888 $727 $595 $487 $399 $327 $268 $219Cash Flow Per Share to HGO (28.0MM Shares) $0.09 $0.07 $0.04 $0.03 $0.03 $0.02 $0.02 $0.01 $0.01 $0.01 $0.01(1) Net Cash Flow before Corporate Overhead.
Economics of Typical Colombian Well
16
HOUSTON AMERICAN ENERGY
Forecasted Well Economics – Colombia (continued)1,000 barrels per day and $60.00 WTI pricing
Assumptions: Economics: Total Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
Lifting Cost ($/bbl) $3.00 Capital Cost ($M) 2,500$ Colombia Overhead ($/bbl) $0.10 WTI Oil Price 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ 60.00$ Transportation Cost $7.00 Realized Oil Price at Point of Sale 54.00$ 54.00$ 54.00$ 54.00$ 54.00$ 54.00$ 54.00$ 54.00$ 54.00$ 54.00$ 54.00$ WTI Differential 90.0% End Period Prod (bbl/d) 819 670 549 449 368 301 247 202 165 135 111Colombian Income Tax 34.0% Decline (% of Year 1) 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%Initial Peak Production (bls/d) 1,000 Net Production (mbbl) 1,620 294 241 197 162 132 108 89 73 59 49 40Net Revenue Interest 89.0% Revenue ($M) $87,492 $15,899 $13,017 $10,657 $8,726 $7,144 $5,849 $4,789 $3,921 $3,210 $2,628 $2,152Decline Rate #1 20.0% LOE ($M) $4,861 $883 $723 $592 $485 $397 $325 $266 $218 $178 $146 $120Discount Rate 10.0% Overhead ($M) $183 $33 $27 $22 $18 $15 $12 $10 $8 $7 $5 $4
DD&A ($M) $2,500 $454 $372 $305 $249 $204 $167 $137 $112 $92 $75 $61Transportation Cost $11,342 $2,061 $1,687 $1,382 $1,131 $926 $758 $621 $508 $416 $341 $279Net Income Pre Tax ($M) $68,607 $12,467 $10,207 $8,357 $6,842 $5,602 $4,586 $3,755 $3,074 $2,517 $2,061 $1,687
Initial Capital Costs $2,500,000 Colombian Income Tax ($15,617) $0 $0 ($2,841) ($2,326) ($1,905) ($1,559) ($1,277) ($1,045) ($856) ($701) ($574)Gross Reserves (Bbl) 1,620,224 Cash Flow ($M) (adds back DDA) $55,490 $12,922 $10,579 $5,820 $4,765 $3,901 $3,194 $2,615 $2,141 $1,753 $1,435 $1,175
Cash Flow ($/Bbl) $34.25 $43.89 $43.89 $29.49 $29.49 $29.49 $29.49 $29.49 $29.49 $29.49 $29.49 $29.49Finding and Discounted Cash Flow ($M) $37,587 $11,747 $8,743 $4,373 $3,255 $2,422 $1,803 $1,342 $999 $743 $553 $412
Development Costs ($/ Bbl) $1.54 Incremental F&D ($/Bble) $1.54
NPV ($M) $37,587*Assumes 30 year life, 92.0% NRI NPV/Bbl $23.20
IRR Calculation ($2,500) $12,922 $10,579 $5,820 $4,765 $3,901 $3,194 $2,615 $2,141 $1,753 $1,435 $1,175IRR 496%
HGO Cash Flow Per Well ($M) (12.5% WI) (1) $1,615 $1,322 $728 $596 $488 $399 $327 $268 $219 $179 $147Cash Flow Per Share to HGO (28.0MM Shares) $0.06 $0.05 $0.03 $0.02 $0.02 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01(1) Net Cash Flow before Corporate Overhead.
Economics of Typical Colombian Well
17
HOUSTON AMERICAN ENERGY
Overview of Hupecol
• Privately held E&P company with offices in Colombia and Texas
• Hupecol’s managing partner currently operates approximately 15,700 barrels of oil equivalent
per day domestically in the U.S.
• Operates with an extensive staff of geologists, petroleum engineers, geophysical and
accounting professionals
• One of the more active independents operating in Colombia
• Hupecol currently produces approximately 18,000 barrels of oil equivalent per day in Colombia
• Hupecol was recently appointed to the Board of Directors of the Colombian Petroleum
Association General Assembly along with Perenco, Petrobras, ExxonMobil, Hocol, and Terpel
• Hupecol had 150% increase in production for years 2004-2006, which was the largest
percentage increase in production among producers in Colombia
• Hupecol had 6 exploratory discoveries in 2006, which was the most among all producers in
Colombia
18
HOUSTON AMERICAN ENERGY
Colombian Budget
1. Capital Expenditures are estimated at $2.5 million per well.
Project Working InterestNumber of
Wells
Gross
Expenditure (1) ($000)
Net Capex ($000)
Caracara 1.6% 13 $32,500 $520
Dorotea 12.5% 2 $5,000 $625
Cabiona 12.5% 8 $20,000 $2,500
Las Garzas 12.5% 2 $5,000 $625
Leona 12.5% 2 $5,000 $625
Caramita 12.5% 4 $10,000 $1,250
3-D Seismic Surimena 12.5% N.A. $1,000 $125
3-D Seismic Cara Cara 1.6% N.A. $3,000 $48
Colombia Total 31 $81,500 $6,318
Domestic Budget
Crowley Prospect - Baronet #3 15.5% 1 $6,300 $976
Grand Total $7,294
Budget through December 2007
• Cash available for investing in Colombia ~ $12,500,000.
• 2007 budget is 25% funded as of March 15th 2007.
19
HOUSTON AMERICAN ENERGY
Investment Considerations
• Uniquely positioned to capitalize on the improving environment for independent oil and gas companies in Colombia
Colombian government’s terms for foreign investment are improving
Pure-play small cap investment opportunity with exposure to Colombia
• Participating in successful drilling program led by Hupecol
Drilled 38 wells in Colombia with a 75% success rate to date
Wells drilled 2005, 2006, and 1st quarter 2007 – 21 out of 27 wells completed as producers for a 77% success rate
Significant acreage position in the prolific Llanos Basin in Colombia
• Low cost structure
Non-operator strategy allows for minimal corporate staff
Colombian properties have lower finding and development costs versus U.S. conventional reserves
• Experienced and incentivized management and board of directors with access to proprietary deal flow
• Simple capitalization structure
20
HOUSTON AMERICAN ENERGY
Stock Price Performance
Average TotalPeriod Average Daily Volume Daily Closing Price
Period Start Date Close Volume Traded High LowLast 30 Days 1/29/2007 $4.24 83,021 2,407,613 $5.32 $3.35Last 60 Days 12/12/2006 $5.08 87,631 5,170,213 $7.95 $3.35Last 90 Days 10/30/2006 $5.16 97,446 8,672,713 $7.95 $3.35Last 120 Days 9/18/2006 $4.61 86,528 10,296,813 $7.95 $2.25
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
July 2006: List on
Amex (HGO)
23
www.houstonamericanenergy.com
HOUSTON AMERICAN ENERGY CORP.
John Terwilliger Chairman and Chief Executive OfficerEmail : jft@houstonamericanenergy.comPhone: (713) 222-6966
James Jacobs Chief Financial OfficerEmail : jjj@houstonamericanenergy.comPhone: (713) 222-6966
To view our recent ringing of the bell on the AMEX, please go to www.amex.com and click on “Bell Ringing Close Up”
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