HOUSTON, Aug. 4, 2006 (PRIMEZONE) -- Houston American Energy Corp. (AMEX:HGO), in response to today's sharp jump in trading volume and decline in price, advised that the jump in trading volume appeared to be attributable to the liquidation of the holdings of a single fund investor pursuant to the liquidation of the fund's entire portfolio.
Mr. John Terwilliger, President and Chairman of Houston American, stated, "We were contacted by the manager of a fund holding over 1 million shares of our stock advising that the fund had incurred losses unrelated to holdings of Houston American and would be liquidating its entire portfolio, including all of its holdings of Houston American. We believe that the shares traded today reflect block trades of the fund's holdings in our stock. To our knowledge, today's trading is a direct result of the fund's liquidation and in no way relates to the operations or performance of Houston American."
About Houston American Energy Corp.
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 a property mix of producing and non-producing assets with a focus on Texas and Colombia. Additional information can be accessed by reviewing the December 31, 2005 Form 10-KSB, and its other periodic reports filed with the Securities and Exchange Commission. The information in this release includes certain forward-looking statements that are based on assumptions that in the future may prove not to have been accurate. Those statements, and Houston American Energy Corp., are subject to a number of risks, including production variances from expectations, volatility of product prices, the capital expenditures required to fund its operations, environmental risks, competition, government regulation, and the ability of the company to implement its business strategy. These and other risks are described in the company's documents and reports that are available from the company and the United States Securities and Exchange Commission.