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Houston American Energy Announces Results for the Quarter and Six Months Ending June 30, 2008 and Declaration of a Cash Dividend

Posted on: Tuesday, 12 August 2008, 15:00 CDT

HOUSTON, Aug. 12 /PRNewswire-FirstCall/ -- Houston American Energy Corp. , today reported its financial results for the quarter and six months ended June 30, 2008.

Revenues for the three months and six months ending June 30, 2008 were $3,328,951 and $6,266,085, respectively, compared with $959,662 and $1,985,085 for the comparable periods in 2007. Net income was $3,199,802, or $0.11 per share, for the quarter and $4,071,524, or $0.14 per share, for the six months ending June 30, 2008. These results compare with a loss of $436,591, or $.02 per share, in the 2007 quarter and a loss of $437,213, or $.02 per share, in the first six months of 2007.

These results include the previously announced sale of one contract area in Colombia in which the Company held an interest. It is important to note that revenues from retained operations in Colombia increased approximately threefold from the first quarter of 2008 to the second quarter of 2008. While Houston American's revenues may be affected from quarter to quarter by weather that hampers its ability to market its full production capacity, these events will even out over the long term and, with this in mind, the Company expects to quickly replace the revenues from the property sold in Colombia and report strong growth in revenues in coming quarters. These results are expected to be derived from the development of the eight remaining contract areas in Colombia in which the Company holds an interest, focusing on areas where discoveries have already been reported.

"I am very pleased to report that the Company's Board of Directors has declared our first quarterly dividend of $0.02 per common share to holders of record on August 29, 2008 with a payment date of September 24, 2008. The declaration of this dividend is the recognition by HUSA's Board of Directors of results this year to date and its confidence that the Company will achieve revenue and earnings growth in the future. Houston American is uniquely positioned to generate excess capital above its needs to develop its assets and to undertake new projects. Rather than diminish our returns with lesser potential or marginal projects, our Board has decided to pay out some of the Company's excess cash flow directly to shareholders in the form of quarterly dividends. The payment and amount of future dividends will, of course, depend on Houston American's future operating results," said John F. Terwilliger, Chairman, Houston American Energy Corp.

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 Texas, Louisiana and Colombia. Additional information can be accessed by reviewing our Form 10-Q and other periodic reports filed with the Securities and Exchange Commission which can be found on our website at http://www.houstonamericanenergy.com/.

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, including statements regarding the company's ability to achieve similar drilling results from projected drilling, the company's ability to increase its rate of revenue growth, and the company's ability to fully finance drilling operations from cash reserves. Those statements, and Houston American Energy Corp., are subject to a number of risks, including the potential changes in price based on operations and fluctuations in oil prices, changes in market conditions and other factors, effects of government regulation, and the ultimate results derived from our projects. 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.

For additional information, view the company's website at http://www.houstonamericanenergy.com/ or contact the Houston American Energy Corp. at (713) 222-6966.

HOUSTON AMERICAN ENERGY CORP. STATEMENT OF OPERATIONS (Unaudited) Six Months Ended Three Months Ended June 30, June 30, 2008 2007 2008 2007 Revenue: Oil and gas $6,266,085 $1,985,085 $3,328,951 $ 959,662 Total revenue 6,266,085 1,985,085 3,328,951 959,662 Expenses of operations: Lease operating expense and severance tax 2,041,890 894,813 1,165,048 488,246 Joint venture expenses 101,694 79,054 54,340 39,433 General and administrative expense 2,007,315 874,780 1,686,390 521,142 Depreciation and depletion 765,903 666,756 424,102 394,978 Total operating expenses 4,916,802 2,515,403 3,329,880 1,443,799 Income (loss) from operations 1,349,283 (530,318) (929) (484,137) Other income: Interest income 160,443 360,554 66,402 187,234 Gain on sale of oil and gas properties 7,615,236 - 7,615,236 - Total other income 7,775,679 360,554 7,681,638 187,234 Net income (loss) before taxes 9,124,962 (169,764) 7,680,709 (296,903) Income tax expense 5,053,438 267,449 4,480,907 139,688 Net income (loss) $4,071,524 $ (437,213) $3,199,802 $ (436,591) Basic income (loss) per share $ 0.15 $ (0.02) $ 0.11 $ (0.02) Diluted income (loss) per share $ 0.14 $ (0.02) $ 0.11 $ (0.02) Basic weighted average shares 27,934,329 27,920,172 27,948,643 27,920,172 Diluted weighted average shares 28,178,360 27,920,172 28,295,294 27,920,172

Houston American Energy Corp.

CONTACT: Houston American Energy Corp., +1-713-222-6966

Web site: http://www.houstonamericanenergy.com/

Source: PRNewswire-FirstCall

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