Houston American Energy Provides CPO 4 Operational Update
Houston American Energy Corp (NYSE: HUSA) today announced an operational update on the Company's CPO 4 block and status of the Tamandua #1 well.
The Company is currently eagerly awaiting the final results of the testing of the Tamandua #1 well and will announce the results as soon as they are available. During preliminary testing of the Tamandua #1 well, it has been determined that the C-9 and C-7 formations experienced formation damage as a result of the mud program used to control the well while drilling. This formation damage has resulted in a testing period longer than what was originally anticipated. Although there have been delays with the testing, the Company remains optimistic that these conditions will be overcome and that it will be able to establish a successful test on the Tamandua #1 well.
After testing of the Tamandua #1 well is complete, the drilling rig on location will be moved to the next prospect on CPO 4. All necessary preparations have been completed for the drilling rig to move to the next prospect and begin drilling. These preparations include completion of the surface location and all logistics related to the drilling of the well, including all permitting. It should also be noted, that the next prospect located on CPO 4 will be shallower than the Tamandua #1 well, and is anticipated to be drilled in less than 60 days once the drilling rig is on location.
The Company, through its operator, is currently in a long term contract with the drilling rig, and the Company looks forward to drilling several prospects in a row after the Tamandua #1 well. The CPO 4 block has in excess of 345,000 acres and the initial prospects targeted are independent conventional prospects. Due to the independent nature of these prospects, the results of any one single prospect will not have a significant impact on the other prospects located on the block. While the Company believes that the potential for a significant unconventional shale play may exist on the block, the current strategy of the operator and Houston American Energy is to focus on conventional prospects with estimated potential reserves ranging from 5.0 to 20.0+ million barrels. The Company is currently very excited about its inventory of prospects and looks forward to drilling the next wells located on CPO 4 after its expected test results on the Tamandua #1 well are complete.
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