Houston American Energy Corp. (NYSE MKT: HUSA) has agreed to participate in drilling a 10,000-foot test well in Pecos County, Texas. The well, sited on a 725-acre lease block, is planned to test the Devonian chert and Strawn formation targeting potential oil pay. The block is expected to accommodate multiple offset locations should the test be successful.
Houston American will hold a 10% working interest after the casing point in the test well and in the entire lease block. Houston American's costs in the test well are expected to be $400,000 or less, which will be funded from working capital. Drilling operations are expected to begin in September. The well operator has drilled over 100 wells on similar prospects on trend.
Based in Houston, Texas, Houston American Energy Corp. is an independent energy company with interests in oil and natural gas wells and prospects. Its business strategy includes a property mix of producing and nonproducing assets, with a focus on Colombia and on Texas and Louisiana in the US.