2009-08-17-2008-05-01-2008-08-01

Acquired 70% in 47,200-hectare Caracara block, Los Llanos Basin.

Spanish integrated oil company Cepsa has acquired a 70% interest in the Caracara oil block in Colombia from Hupecol Caracara LLC and Houston American Energy Corp., Houston, (Nasdaq: HUSA) for US$920 million. Hupecol was owner and operator. Houston American held a 1.6% interest. The block is governed by an association contract with Colombia state-owned Ecopetrol, which holds the remaining 30% of the concession. The Caracara Block comprises 47,200 hectares in the Los Llanos Basin in the central portion of the country. Production is more than 20,000 barrels of oil per day with estimated reserves of 40 million barrels. Cepsa has eight contracts in the Upper and Middle Magdalena River Valley and in the Los Llanos Basin. Houston American president John Terwilliger says, "The Hupecol management team has done a terrific job of managing and unlocking the value of our Colombian holdings. With the completion of the sale and the grant of the additional contract, we are excited that the management team will be able to focus its energies on the development of Hupecol's deep pool of Colombian prospects, now covering seven contract areas. With the receipt of proceeds from the Caracara sale, Houston American will be well positioned to fund its portion of costs associated with the planned development of the Colombian prospects as well as domestic drilling operations." Houston American operates in Texas, Louisiana and Colombia. Scotia Waterous was advisor to Hupecol. The Caracara Block was one of eight offered.