Houston American Energy Completes Financing & Raises $12.8 Million

Offering Placed With Institutional Investors – Share Price Drops

December 5, 2009 - Houston American Energy Corp. (Nasdaq: HUSA ) has completed and received the funds from a registered direct offering, which was placed with institutional investors.  The offering consisted of 2,890,000 shares of the Company's common stock at a price of $4.68 per share.  The shares closed yesterday at $4.49, down from a recent high of close to $5.00 per share.

The net proceeds received by the company were approximately $12.8 million. Houston American Energy indicated that they intend to use the offering proceeds for working capital, including funding the company's share of costs of development of oil and gas properties in which Houston American Energy holds interests.

Based in Houston, Texas, Houston American Energy Corp is an independent energy company with interests in oil and natural gas wells and prospects. The company's business strategy includes producing and non-producing properties, with a focus of its activities being in Colombia, Texas, and Louisiana.