Business Context and Reporting Period
This Form 8-K is filed by Houston American Energy Corp. (not Abundia Global Impact Group, Inc.) for the reporting period ending January 29, 2003. The registrant is a Delaware corporation engaged in oil and gas activities. The report details a specific asset acquisition transaction that closed on January 29, 2003, with an effective date of January 1, 2003.
Key Financial Metrics and Transaction Details
- Acquisition Cost: $312,500 paid in cash on January 29, 2003.
- Asset Acquired: A 12.5% interest in Hupecol, LLC, which holds the Tambaqui Association Contract (36,000 hectares) in Casanare, Colombia, issued by ECOPETROL.
- Additional Capital Commitment: The registrant agreed to contribute an additional $168,579.38 upon a cash call from Hupecol, LLC.
- Funding Source: Corporate funds.
- Financial Statements: None provided in this filing; statements for Hupecol, LLC are pending completion.
Material Changes
The primary material change is the expansion of the registrant's asset base into Colombia. The company now holds a beneficial 12.5% interest in the Tambaqui Block. The transaction was structured through an agreement with Rio Exploration Company, involving a future assignment of interests to a new "Tambaqui Limited Liability Company."
Outlook, Risks, and Contingencies
- Future Obligations: The registrant is subject to a potential cash call of $168,579.38.
- Operational Rights: A Joint Development and Operating Agreement is to be executed to manage the new LLC and contract.
- Right of First Refusal: For five years, both parties have agreed to offer each other a 12.5% working interest in any new geological or oil and gas projects in the region on a cost basis.
- Data Access: Rio Exploration Company is obligated to provide all pertinent data (geophysical, log, contract) to the registrant, with reproduction costs borne by the requesting party.
Investor Verification Checklist
- Verify the legal status and formation progress of the new "Tambaqui Limited Liability Company."
- Confirm the validity of the Tambaqui Association Contract with ECOPETROL and the State of Casanare.
- Monitor for any cash calls from Hupecol, LLC requiring the additional $168,579.38 contribution.
- Review the pending Joint Development and Operating Agreement for operational control terms.
- Check for the subsequent filing of financial statements for Hupecol, LLC as required by SEC regulations.