Business Context and Reporting Period
This Form 8-K was filed by Houston American Energy Corp. on March 7, 2007. The report details preliminary results from the Dorotea B2 well located in the Dorotea Prospect in Colombia. The company holds a 12.5% interest in the Dorotea concession through Hupecol Dorotea and Cabiona LLC (HDC LLC), with Hupecol LLC serving as the operator.
Key Financial and Operational Metrics
The filing focuses on operational drilling results rather than financial statements. Key metrics provided include:
- Total Depth: 5,700 feet measured depth (MD).
- Apparent Oil Pay: Approximately 28 feet in the top of the C5 Sand (5,258 to 5,262 feet MD).
- Initial Flow Rate: 2,200 barrels of fluid per day (88% oil, 12% water).
- Subsequent Flow Rate: 2,640 barrels of fluid per day (98% oil, 2% water) after 1.5 hours.
The filing text does not provide clear values for revenue, profit, cash flow, margins, debt, or liquidity.
Material Changes and Operational Status
The well has been drilled to total depth, cased, and perforated. Initial testing indicates a significant increase in oil percentage and total fluid volume within the first 1.5 hours of flow. The company notes that the well remains in the very early testing phase.
Outlook, Risks, and Management Commentary
Management emphasizes that the data is preliminary and based on information provided by the operator on March 7, 2007. A specific risk is highlighted: preliminary results may not reflect actual long-term production rates for the well. No formal financial guidance or outlook was provided in this report.
Investor Verification Checklist
- Verify the final confirmed production rates once the testing phase is complete.
- Confirm the 12.5% working interest held by the company in the Dorotea concession.
- Monitor future filings for updates on the commercial viability of the C5 Sand.
- Check for any subsequent reports regarding the well's sustained flow performance.