Business Context and Reporting Period
This Form 8-K was filed by Houston American Energy Corp. on September 5, 2006. The report provides an update on drilling operations at the Cabiona prospect in Colombia, where the Company holds a 12.5% interest through Hupecol Dorotea and Cabiona LLC (HDC LLC).
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The report focuses exclusively on operational status regarding drilling activities.
Material Changes and Operational Updates
- Cabiona A1 Well: Drilling was completed on September 3, 2006, reaching a depth of 4,536 feet. The well was drilled to satisfy a regulatory requirement by the Colombian National Hydrocarbon Agency (ANH) to drill and log a well prior to September 9, 2006.
- Result: The Cabiona A1 well proved to be non-commercial and is currently being plugged.
- Location Strategy: The A1 well was located at the southernmost accessible point in the contract area due to wet weather conditions.
Outlook and Future Plans
- Cabiona A4 Well: Scheduled to commence immediately after the drilling rig is relocated from the A1 site. This well will serve as a definitive test of the first of five geologic features in the contract area, offsetting the original OXY Cabiona #1 well.
- Cabiona #8 Well: Scheduled to be drilled upon completion of the Cabiona A4 well to test the second geologic feature.
Investor Verification Checklist
- Verify the commercial viability of the upcoming Cabiona A4 and #8 wells given the non-commercial result of the A1 well.
- Confirm the timeline for rig relocation and the commencement of drilling for the A4 well.
- Review the Company's 12.5% interest structure in HDC LLC and the associated capital requirements for future drilling.
- Assess the impact of weather conditions on the accessibility of remaining geologic features within the contract area.