Houston American Energy Completes Private Placement Of $1.2 Million Of 12.0% Series A Convertible Preferred Stock

HOUSTON, Jan. 31, 2017

Funds from the offering will be used to complete the previously announced acquisition from Founders Oil & Gas III, LLC of a 25% working interest in two lease blocks covering approximately 800 acres in Reeves County, Texas in the Permian Basin.

John P. Boylan, CEO and President of Houston American stated, "This equity raise provides Houston American with capital needed to complete our acquisition from Founders and to move forward with our plans to further develop our relationship and to pursue opportunities in the Permian Basin. We expect to complete our working interest acquisition from Founders shortly and plan to commence drilling of our first horizontal well on the acquired acreage near the end of the 2^nd Quarter of 2017.  We are very excited about these properties and their potential to accommodate multiple resource development wells. We believe the properties represent a strong start to our plans to build a portfolio of assets in the Permian Basin."

This news release does not constitute an offer to sell or solicitation of an offer to buy any securities.

About Houston American Energy Corp

Based in Houston, Texas, Houston American Energy Corp. is a publicly-traded independent energy company with interests in oil and natural gas wells, minerals and prospects. The Company's business strategy includes a property mix of producing and non-producing assets with a focus on Texas, Louisiana and Colombia.

Forward-Looking Statements