Today, in an 8K, HGO report what I believe to be the most important news in the history of the company.
"Item 8.01. Other Events.
Houston American Energy Corp. (the "Company") provides the following information on the results of its Dorotea B2 well on its Dorotea Prospect in Colombia:
The well has been drilled to total depth of 5700 feet MD and 7 inch production casing has been run by the operator, Hupecol LLC. The well has been perforated from 5258 feet to 5262 feet MD in the top of the C5 Sand with about 28 feet of apparent oil pay based on log and core analysis. The well began flowing at the
rate of 2,200 barrels of fluid per day of which 12% was water and 88% oil. After an hour and a half, the well was flowing at the rate of 2,640 barrels of fluid per day, of which 2% was water and 98% was oil. The information provided with respect to the Dorotea B2 well is based on preliminary information provided
by the well operator on March 7, 2007. The well remains very early in the testing phase and preliminary results may not reflect actual production rates for the well.
The Company holds, through its interest in Hupecol Dorotea and Cabiona LLC ("HDC LLC"), a 12.5% interest in the Dorotea concession. HDC LLC owns the Dorotea concession through a contract with the Colombian National Hydrocarbon Agency
(ANH) and Hupecol LLC is the operator of the Dorotea concession."
This well alone has enormous economic implications being the largest well the company has ever participated in. And their interest is 12.5%. The revenue to the company from this well alone could be in the neighborhood of $4.0 million a year. And they may have as many and 95 other drillable locations. The potential is stagering.
From a technical point of view today's breakout on high volume indicates to me that institutional investors are beginning to understand the potential.
This stock is going much higher and soon.
