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Freeforall is right -- it is an interesting

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bigwest   Friday, 12/08/06 04:16:44 PM
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Freeforall is right -- it is an interesting company and well positioned to reward those that will be patient. I've known the key people for more than 20 years and got in the stock at around fifty cents when it had no wells. Today they have about 35 producing wells and are one of the key drillers in Columbia which has the most favorable arrangement of all oil producing countries.
By the end of 2007, Houston American Energy should have another 35 wells drilled in Columbia alone, AND, if the success rate holds at 75%, they will then have about 60 producing wells. The last well they drilled is producing 2,000 bbls of oil per day from one pay zone out of three in the well. Do the math, HGO has a 12.5% stake in this well and most of the new wells planned for Columbia. Even if oil prices come down, there is still plenty of room for big profits. $6.70 may seem high today, but not when you run the numbers fot the next year. If you really want to have some fun, consider that HGO has 3-D seismics on 1000 square miles in Columbia with at least 100 identified prospects. Yes, this is a real company with huge upside, but of course with the usual attendant risks associated with oil and gas exploration.

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