HOUSTON, April 7, 2010 -- Houston American Energy Corp. (Nasdaq: HUSA), in response to today's sharp jump in trading volume and decline in price, advised that the jump in trading volume appeared to be attributable to an internet posting questioning the valuation of the company's holdings and inferring that the company is "Set Up for Collapse." Mr. John Terwilliger, President and Chairman of Houston American, stated, "We have reviewed the internet postings in question and believe they mischaracterize our company, our management team and the very nature of our operations."
"Any inference that our company is set up for collapse is unwarranted and outrageous. We have no debt and operate with a lean overhead structure. This is consistent with our goal to identify attractive opportunities to profit alongside larger operators without having to carry the overhead of such operators. In addition, it should be noted that Houston American Energy is not a party to any litigation, nor is it aware of any threatened litigation."
"Regarding the allegations with respect to the integrity of management, such allegations are scurrilous at best. Regarding royalties received by myself and Lee Tawes, those royalties were established early in the company's life (2005) when no compensation was paid to officers and directors and we have consistently disclosed the royalties that have been paid. Moreover, I would note that since inception of the company neither I nor any member of our management or board has sold a single share of stock in our company. Allegations of some form of potential wrongdoing based on the receipt from third parties of fully disclosed royalties and unsubstantiated allegations relating to Moose Oil appear only to act as cover for the author's malicious efforts to smear our company."
"With regards to the valuation of our asset plays, we do not fix the value of those assets. However, we do stand behind the performance and track record of our partners in Colombia. Houston American along with its consortium partners sold their initial prospect in Colombia for roughly $1 billion and has an established record of finding and developing reserves in Colombia."
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 the December 31, 2009 Form 10-K, and its other periodic reports filed with the Securities and Exchange Commission. The information in this release includes certain forward-looking statements that are based on assumptions that in the future may prove not to have been accurate. Those statements, and Houston American Energy Corp., are subject to a number of risks, including production variances from expectations, volatility of product prices, the capital expenditures required to fund its operations, environmental risks, competition, government regulation, and the ability of the company to implement its business strategy. These and other risks are described in the company's documents and reports that are available from the company and the United States Securities and Exchange Commission.
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Sincerely,
Kevin McKnight
1-800-404-8982
Undiscovered Equities, Inc.101
Plaza Real, Suite 212
Boca Raton, FL 33432
www.undiscoveredequities.com
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