2009-08-05-2009-08-01-2009-08-01

Farmed into 12.5% stake in Colombia block contract covering 110,769 acres.

Houston American Energy Corp., Houston, (Nasdaq: HUSA) has farmed into an undivided 12.5% stake in the Serrania E&P contract covering the Serrania block in Colombia from Shona Energy (Colombia) Ltd., a subsidiary of privately held, Houston-based Shona Energy Co. The block covers approximately 110,769 acres in the Uribe and La Macarena municipalities. Houston American will pay 25% of the phase 1 work program of the Serrania contract, which consists of completing a geochemical study, reprocessing existing 2-D seismic data and the acquisition, processing and interpretation of a 2-D seismic program containing approximately 115.93 kilometers of data. The work program is estimated to be completed by Sept. 15. Following completion of the work program, Hupecol Operating LLC will have the rights to acquire a 50% participating interest in the Serrania block and will be operator. Houston American's costs for the phase 1 work program are estimated to be approximately $1.125 million and will be funded from working capital on hand. Houston American chief executive John Terwilliger says, "We are very pleased to be able to participate in the Serrania block and believe that the contract area provides a significant growth opportunity for Houston American. The Serrania block is north of the Ombu block, where a recent 100-million barrel discovery was made and announced by the Colombian ministry of energy. We believe that the contract provides very favorable fiscal terms, with a sliding scale royalty between 8% and 20% from 5,000 to 125,000 barrels per day of production."