I only wish I could have been bothered to write about this company when I first heard rumblings about it a few years ago. This is some good reading, as is this lengthy, smart take-down. From the older story:
A third member of Houston American’s five-person board, Edwin C. Broun III, was described in court documents last year as suffering from alcohol-related brain damage that could affect his ability to “process information and make sound decisions.” The filing, submitted in his defense, characterized him as a recluse who slept all day, drank all night and hadn’t opened his mail in two years.
Gosh. Stock now at 22c, down from 55c earlier this week. Gosh. And here you thought the drop from $20 to $1 meant the short was over.
Here’s the probable reason for this week’s drop:
On December 10, 2012, Houston American Energy Corp. (the “Company”) issued a press release announcing that the Company had received notice from SK Innovation, operator on the Company’s CPO 4 Block in Colombia, that it intends to plug and abandon the Zorro Gris #1 well. Following completion of the abandonment of the well, the drilling rig will be released. SK Innovation is currently in the process of acquiring its second proprietary 3-D seismic shoot on the CPO 4 block (approximately 135 square miles), which is anticipated to be completed in 2013. The Company is currently evaluating its future plans and alternatives regarding the CPO 4 block. The press release is attached to this Current Report on Form 8-K as Exhibit 99.1.