2009-10-28-2009-10-16

To earn undivided 25% stake in CPO 4 Block covering 345,452 net acres in Llanos Basin, Colombia.

Houston American Energy Corp., Houston, (Nasdaq: HUSA) plans to earn an undivided 25% stake in Colombian joint operating agreement with SK Energy Co. Ltd., Seoul, South Korea, (Korea: 096770). The deal consists of 25% of the rights to the CPO 4 contract for E&P, covering the CPO 4 Block in the Western Llanos Basin. The contract was entered between the National Hydrocarbon Agency in Colombia and SK on Dec. 18, 2008. The CPO 4 Block consists of 345,452 net acres and contains more than 100 identified leads or prospects, which will be detailed during the first exploration phase of the concession contract with the ANH. The block is along the western margin of the Llanos Basin and is adjacent to Apiay Field operated by Ecopetrol. On the CPO 4 Block's other side lays the Corcel Block. In addition, the CPO 4 Block is near oil and gas pipeline infrastructure. Potentially productive reservoirs include the Mirador, Une, C-7, C-9 and Guadalupe formations. Houston American has agreed to pay 25% of all past and future cost related to the CPO 4 block and an additional 12.5% of the seismic acquisition costs incurred during the Phase 1 work program. The work program consists of reprocessing approximately 400 kilometers of existing 2-D seismic data, the acquisition, processing and interpretation of a 2-D seismic program containing approximately 620 kilometers of data and the drilling of two exploration wells. Phase 1 is estimated to be completed by June 17, 2012. Houston American's costs for the entire work program are estimated to total approximately $15 million during the next three years. Houston American chief executive John Terwilliger says, "We are excited that we are able to participate with SK in the CPO 4 Block and believe that the contract area provides a significant growth opportunity for Houston American. The CPO 4 block is located in a highly prospective area having multiple play objectives with extremely large reserve potential. Partnering with SK creates a solid partnership bringing geotechnical, operational, commercial and marketing strengths to the table. This new asset, in addition to our current portfolio, strengthens our upside drilling opportunity base in our main focus area for years to come."