Houston American Energy announced the acquisition of an additional interest in Hupecol Meta, doubling its interest in Hupecol Meta previously announced on October 22, 2019. Hupecol Meta owns the 639,405 gross acre CPO-11 block in the Llanos Basin in Colombia, comprised of the 69,128 acre Venus Exploration area, operated by Hupecol, and 570,277 acres which was 50% farmed out to Parex Resources by Hupecol. In total, the CPO-11 block covers almost 1,000 sq mi with multiple identified leads and prospects expected to support a multi-well drilling program. Through its membership interest in Hupecol Meta, Houston American now holds a 2% interest in the Venus Exploration area and a 1% interest in the remainder of the block.
The increased participation in CPO-11 compliments Houston American's recent efforts to expand its acreage position which, over the last year, has resulted in the acquisition of positions in two blocks in the Midland sub-basin of the Permian Basin totaling approximately 6,500 gross acres plus the 639,000+ gross acre CPO-11 block. The company expects those acquisitions to provide a multi-year inventory of drilling prospects with the potential return to growth in production, proved reserves, revenues and a potential return to profitability.
Jim Schoonover, CEO of Houston American, stated, "We are in the midst of a three phase plan designed to return Houston American to sustainable revenue growth, profitability and growth in shareholder value. Phase One, focused on reducing our overhead, has resulted in a substantial decrease in our general and administrative expenses since 2017. Phase Two, focused on identifying and committing to projects that offer both scale and revenue potential necessary to regain sustained profitability, has resulted in recent acquisitions of positions in acreage covering more than 645,000 gross acres, including two San Andres projects in the Midland sub-basin of the Permian Basin plus the CPO-11 block in Colombia. Having executed on Phases One and Two, we are now focused on Phase Three, executing on the development of these newly acquired assets, while continuing to identify new opportunities."