Business Context and Reporting Period
This Form 8-K Current Report was filed by Houston American Energy Corp. on February 14, 2017, covering events occurring on February 9, 2017. The filing reports the completion of an asset acquisition in Reeves County, Texas.
Key Financial Metrics
- Acquisition Cost: $986,046
- Asset Acquired: 25% working interest in two lease blocks (717.25 gross acres).
- Funding Source: Proceeds from a private placement of 12.0% Series A Convertible Preferred Stock dated January 31, 2017.
- Revenue, Profit, Cash Flow, Debt, Liquidity: The filing text does not provide a clear value for these general corporate financial metrics. Financial statements for the acquired business and pro forma information are not included in this report.
Material Changes
The primary material change is the closing of the acquisition of the Prospect from Founders Oil & Gas III, LLC. The company now holds a 25% working interest, subject to a 5% back-in right for the prospect generator after project payout.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future outlook, or specific risk factors beyond the standard regulatory disclosures. The company notes that financial statements for the acquired business and pro forma financial information will be filed within 71 calendar days of this report.
Investor Verification Checklist
- Verify the terms of the 12.0% Series A Convertible Preferred Stock issued on January 31, 2017, used to fund this acquisition.
- Monitor the upcoming filing (within 71 days) for financial statements of the acquired business and pro forma financial information.
- Review the attached press release (Exhibit 99.1) for additional details on the Reeves County assets.
- Confirm the status of the 5% back-in right held by Founders Oil & Gas III, LLC.