Houston American Energy Corp. Files 2023 Annual Report on Form 10-K
Ticker: AGIG · Form: 10-K · Filed: Apr 2, 2024 · CIK: 1156041
Sentiment: neutral
Topics: 10-K, Houston American Energy, Oil and Gas, Financial Report, SEC Filing
TL;DR
<b>Houston American Energy Corp. has filed its 2023 annual report (10-K), detailing financial performance, oil and gas assets in the US and South America, and equity incentive plans.</b>
AI Summary
HOUSTON AMERICAN ENERGY CORP (AGIG) filed a Annual Report (10-K) with the SEC on April 2, 2024. Houston American Energy Corp. filed its 2023 Form 10-K on April 2, 2024, reporting on its fiscal year ended December 31, 2023. The company operates in the Crude Petroleum & Natural Gas industry, with SIC code 1311. Key financial data for the fiscal years 2023 and 2022 are presented, including common stock, additional paid-in capital, and retained earnings. The filing details oil and gas properties located in the US and South America, with specific data for 2023 and 2022. Information on equity incentive plans, including the 2008, 2017, and 2021 plans, is provided.
Why It Matters
For investors and stakeholders tracking HOUSTON AMERICAN ENERGY CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Houston American Energy Corp.'s financial health and operational status for the fiscal year 2023, crucial for investors assessing the company's performance and future prospects. The detailed breakdown of oil and gas properties and sales segments offers insight into the company's core business activities and geographical focus, particularly in the US and South America.
Risk Assessment
Risk Level: medium — HOUSTON AMERICAN ENERGY CORP shows moderate risk based on this filing. The company's operations are concentrated in the oil and gas sector, which is subject to significant price volatility and regulatory changes, as indicated by the industry classification and geographical focus on oil and gas properties.
Analyst Insight
Investors should review the detailed financial statements and risk factors in the 10-K to understand the company's exposure to commodity price fluctuations and operational challenges.
Key Numbers
- 2023-12-31 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
- 2024-04-02 — Filing Date (FILED AS OF DATE)
- 1311 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)
- 2023-12-31 — Reporting Period End (Fiscal Year End)
- 2022-12-31 — Prior Year End (Fiscal Year End)
Key Players & Entities
- HOUSTON AMERICAN ENERGY CORP (company) — FILER
- 20231231 (date) — CONFORMED PERIOD OF REPORT
- 20240402 (date) — FILED AS OF DATE
- 0001156041 (company) — CENTRAL INDEX KEY
- 1311 (industry) — STANDARD INDUSTRIAL CLASSIFICATION
- DE (jurisdiction) — STATE OF INCORPORATION
- 77002 (location) — ZIP
- 7132226966 (phone) — BUSINESS PHONE
FAQ
When did HOUSTON AMERICAN ENERGY CORP file this 10-K?
HOUSTON AMERICAN ENERGY CORP filed this Annual Report (10-K) with the SEC on April 2, 2024.
What is a 10-K filing?
A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by HOUSTON AMERICAN ENERGY CORP (AGIG).
Where can I read the original 10-K filing from HOUSTON AMERICAN ENERGY CORP?
You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by HOUSTON AMERICAN ENERGY CORP.
What are the key takeaways from HOUSTON AMERICAN ENERGY CORP's 10-K?
HOUSTON AMERICAN ENERGY CORP filed this 10-K on April 2, 2024. Key takeaways: Houston American Energy Corp. filed its 2023 Form 10-K on April 2, 2024, reporting on its fiscal year ended December 31, 2023.. The company operates in the Crude Petroleum & Natural Gas industry, with SIC code 1311.. Key financial data for the fiscal years 2023 and 2022 are presented, including common stock, additional paid-in capital, and retained earnings..
Is HOUSTON AMERICAN ENERGY CORP a risky investment based on this filing?
Based on this 10-K, HOUSTON AMERICAN ENERGY CORP presents a moderate-risk profile. The company's operations are concentrated in the oil and gas sector, which is subject to significant price volatility and regulatory changes, as indicated by the industry classification and geographical focus on oil and gas properties.
What should investors do after reading HOUSTON AMERICAN ENERGY CORP's 10-K?
Investors should review the detailed financial statements and risk factors in the 10-K to understand the company's exposure to commodity price fluctuations and operational challenges. The overall sentiment from this filing is neutral.
Risk Factors
- Commodity Price Volatility [high — market]: The company's financial performance is highly dependent on the market prices of crude oil and natural gas, which are subject to significant fluctuations.
- Environmental and Regulatory Compliance [medium — regulatory]: Operations are subject to extensive federal, state, and local environmental and safety regulations, which can increase costs and affect operations.
- Operational Risks and Uncertainties [medium — operational]: Exploration, development, and production activities involve inherent risks, including the possibility of drilling dry holes and encountering unexpected geological conditions.
Key Dates
- 2024-04-02: Form 10-K Filing — Annual report detailing fiscal year 2023 performance and financial position.
Filing Stats: 4,599 words · 18 min read · ~15 pages · Grade level 13.1 · Accepted 2024-04-02 13:42:52
Key Financial Figures
- $0.001 — nge on which registered Common Stock, $0.001 par value HUSA NYSE American Sec
- $99,716 — PO-11 block and we agreed to contribute $99,716. In 2022, we acquired additional intere
- $657,638 — sts in Hupecol Meta for an aggregate of $657,638. As a result of our acquisition of addi
- $74.70 — of estimating our proved reserves were $74.70 per barrel of oil and $1.98 per mcf of
- $1.98 — erves were $74.70 per barrel of oil and $1.98 per mcf of natural gas for our US prope
Filing Documents
- form10-k.htm (10-K) — 1449KB
- ex23-1.htm (EX-23.1) — 4KB
- ex23-2.htm (EX-23.2) — 4KB
- ex31-1.htm (EX-31.1) — 17KB
- ex32-1.htm (EX-32.1) — 7KB
- ex99-2.htm (EX-99.2) — 2KB
- ex99-2_001.jpg (GRAPHIC) — 692KB
- ex99-2_002.jpg (GRAPHIC) — 681KB
- ex97-1.htm (EX-97.1) — 22KB
- 0001493152-24-012685.txt ( ) — 8231KB
- husa-20231231.xsd (EX-101.SCH) — 44KB
- husa-20231231_cal.xml (EX-101.CAL) — 65KB
- husa-20231231_def.xml (EX-101.DEF) — 152KB
- husa-20231231_lab.xml (EX-101.LAB) — 362KB
- husa-20231231_pre.xml (EX-101.PRE) — 286KB
- form10-k_htm.xml (XML) — 998KB
Business
Business 3 Item 1A.
Risk Factors
Risk Factors 13 Item 1B. Unresolved Staff Comments 24 Item 1C. Cybersecurity 25 Item 2.
Properties
Properties 25 Item 3.
Legal Proceedings
Legal Proceedings 25 Item 4. Mine Safety Disclosures 25 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 26 Item 6. Reserved 26 Item 7.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Item 7A.
Quantitative and Qualitative Disclosures About Market Risk
Quantitative and Qualitative Disclosures About Market Risk 32 Item 8.
Financial Statements and Supplementary Data
Financial Statements and Supplementary Data 32 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 32 Item 9A.
Controls and Procedures
Controls and Procedures 32 Item 9B. Other Information 33 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 33 PART III Item 10. Directors, Executive Officers, and Corporate Governance 33 Item 11.
Executive Compensation
Executive Compensation 33 Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 33 Item 13. Certain Relationships and Related Transactions, and Director Independence 33 Item 14. Principal Accountant Fees and Services 33 PART IV Item 15. Exhibit and Financial Statement Schedules 34 Item 16. Form 10-K Summary 34
SIGNATURES
SIGNATURES 35 2 FORWARD-LOOKING This annual report on Form 10-K contains forward-looking statements within the meaning of the federal securities laws. These forwarding-looking and expectations regarding our properties and drilling activities and results, our intentions and strategies regarding future acquisitions and sales of properties, our intentions and strategies regarding the formation of strategic relationships, our beliefs regarding the future success of our properties, our expectations and beliefs regarding competition, competitors, the basis of competition and our ability to compete, our beliefs and expectations regarding our ability to hire and retain personnel, our beliefs regarding period to period results of operations, our expectations regarding revenues, our expectations regarding future growth and financial performance, our beliefs and expectations regarding the adequacy of our facilities, and our beliefs and expectations regarding our financial position, ability to finance operations and growth and the amount of financing necessary to support operations. These statements are subject to risks and uncertainties that could cause actual results and events to differ materially. See "Item 1A. Risk Factors" for a discussion of certain risk factors. We undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this annual report on Form 10-K. As used in this annual report on Form 10-K, unless the context otherwise requires, the terms "we," "us," "the Company," and "Houston American" refer to Houston American Energy Corp., a Delaware corporation. PART I Item 1.
Business
Business General Houston American Energy Corp is an independent oil and gas company focused on the development, exploration, exploitation, acquisition, and production of natural gas and crude oil properties. Our principal properties, and operations, are in the U.S. Permian Basin and the South American country of Colombia. Additionally, we have properties in the Louisiana U.S. Gulf Coast region. We focus on early identification of, and opportunistic entrance into, existing and emerging resource plays. We do not operate properties but typically seek to partner with, or invest along-side, larger operators in the development of resources or retain interests, with or without contribution on our part, in prospects identified, packaged and promoted to larger operators. By entering these plays earlier, identifying stranded blocks and partnering with, investing along-side or promoting to, larger operators, we believe we can capture larger resource potential at lower cost and minimize our exposure to drilling risks and costs and ongoing operating costs. We, along with our partners, actively manage our resources through opportunistic acquisitions and divestitures where reserves can be identified, developed, monetized and financial resources redeployed with the objective of growing reserves, production and shareholder value.
Properties
Properties Our exploration and development projects are focused on existing property interests, and future acquisition of additional property interests, in the Texas Permian Basin, the South American country of Colombia and the onshore Louisiana Gulf Coast region. Each of our property interests differ in scope and character and consists of one or more types of assets, such as 3-D seismic data, owned mineral interests, leasehold positions, lease options, working interests in leases, partnership or limited liability company interests, corporate equity interests or other mineral rights. Our percentage interest in each property represents the portion of the interest in the property we share with other partners in the property. Because each property consists of a bundle of assets that may or may not include a working interest in the project, our stated interest in a property simply represents our proportional ownership in the bundle of assets that constitute the property. Therefore, our interest in a property should not be confused with the working interest that we will own when a given well is drilled. Each of our exploration and development projects represents a negotiated transaction between the project partners relating to one or more properties. Our working interest may be higher or lower than our stated interest. 3 The following table sets forth information relating to our principal properties as of December 31, 2023: Average Gross Net proved 2023 Net Production Net acreage working interest % producing wells reserves (boe) (1) Oil (bbls) (1) Natural Gas (mcf) (1) Texas 109 17.0 % 4 159,875 7,971 57,360 Louisiana 582 23.4 % — — — — Total U.S. 691 22.1 % 4 159,875 7,971 57,360 Colombia (2) 56,647 8.9 % 4 — — — Total 57,338 8.9 % 8 159,875 7,971 57,360 (1) All reserve and production information excludes wells operated by Hupecol Meta in Colombia. (2) Net acreage and average working inter
Properties
Properties Our sole property in Louisiana consists of a 23.4% mineral interest in 2,485 gross acres in East Baton Rouge Parish. There are no present wells, or plans to conduct drilling operations, on our Louisiana acreage. - Colombian Properties: At December 31, 2023, we held interests in a single block, through our equity investment in Hupecol Meta, LLC, operated by Hupecol Operating and affiliates, in Colombia covering 639,405 gross acres. We identify our Colombian prospect as the Venus Exploration Area within the CPO-11 block and remainder of the CPO-11 block. The following table sets forth information relating to our interests in prospects in Colombia at December 31, 2023: Property Operator Interest(1) Total Gross Acres Total Gross Developed Acres Gross Productive Wells CPO-11 – Venus Exploration Area Hupecol 16.0 % 69,128 640 4 CPO-11 Hupecol 8.0 % 570,277 — — Total 639,405 640 4 The CPO-11 concession, including the Venus Exploration Area, is located in the Llanos Basin and is owned and operated by Hupecol Meta. CPO-11 During 2019, we acquired a two percent ownership interest in Hupecol Meta, LLC ("Hupecol Meta"). Hupecol Meta owns the 639,405 gross acre CPO-11 block in the Llanos Basin in Colombia. The CPO-11 block is comprised of the 69,128 acre Venus Exploration area and 570,277 acres which was 50% farmed out by Hupecol to Parex Resources. In 2021, Hupecol Meta increased its ownership interest in the CPO-11 block and we agreed to contribute $99,716. In 2022, we acquired additional interests in Hupecol Meta for an aggregate of $657,638. As a result of our acquisition of additional interests in 2021 and 2022, our ownership interest in Hupecol Meta was approximately 18% at December 31, 2023. Through our ownership interest in Hupecol Meta, at December 31, 2023, we hold an approximately 16% interest in the Venus Exploration Area and an approximately 8% interest in the remainder of the CPO-11 block. The