Houston American Energy Announces Termination of Interest in CPO 4 Concession
and Mutual Release with SK Innovation
HOUSTON, March 28, 2013
HOUSTON, March 28, 2013 /PRNewswire/ --Houston American Energy Corp (NYSE
MKT: HUSA) announced on December 10, 2012 that it was evaluating its future
plans and alternatives regarding the CPO 4 block. The Company today announced
that it has entered into an Assignment Agreement and a Full and Final
Settlement and Mutual Release Agreement (the "Agreements") with SK Innovation
relating to Houston American Energy's interest, and ongoing involvement, in
the CPO 4 Concession in Colombia.
Under the terms of the Agreements, Houston American Energy agreed to withdraw
from the Joint Operating Agreement covering the CPO 4 prospect and to transfer
to SK Innovation all of its right and interest in the CPO 4 Concession. The
Agreements further provided that Houston American Energy and SK Innovation
released the other from any and all claims arising in connection with the CPO
4 Concession, including any claims SK Innovation might have for past, present
or future capital calls owing by Houston American Energy under the Joint
Operating Agreement. Houston American Energy's assignment of its right and
interest in the CPO 4 Concession to SK Innovation pursuant to the Agreements
is subject to the approval of the National Hydrocarbon Agency in Colombia.
John Terwilliger, Chief Executive Officer of Houston American Energy, stated,
"We are pleased to have arrived at a mutually acceptable parting of the ways
on CPO 4 with SK Innovation. While the Concession offered exciting potential
for Houston American, the complexity and cost of drilling the prospects and
the disappointing test wells clearly pointed our company in a different
direction. With the settlement, we are now free of obligations relating to CPO
4 and are positioned to move forward on other prospects in our inventory, most
notably Serrania. Following the settlement, we expect to have in excess of
$10 million of available working capital and plan to pursue our drilling and
development program as well as to seek out other attractive drilling
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
Disclosures in this press release may contain forward-looking statements
relating to anticipated or expected events, activities, trends or results.
Such forward-looking statements, include, but are not limited to, statements
regarding expected levels of liquidity, ability to successfully explore for
and develop reserves and other statements that are not historical facts.
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. Such 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
SOURCE Houston American Energy Corp
Contact: Houston American Energy Corp, +1-713-222-6966
Press spacebar to pause and continue. Press esc to stop.