Houston American Energy Corporation (NYSEMKT: HUSA) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company provided an update with regard production information on a key well as well and more. Of course, this led to excitement among investors, causing gains and prompting our friends at Trade Ideas to alert us to the movement. At the moment (10:23), HUSA is trading at $0.63 per share after a gain of $0.13 per share or 26.00% thus far today.
HUSA Gains On Business Update
As mentioned above, Houston American Energy is having an incredible time in the market today after providing an update. The update is with regard to production data on its Johnson State #1H well. The company also provided an update with regard to the status of drilling and completion operations in Reeves County, TX.
In a press release offered up early this morning, HUSA said that the latest daily flowback report surrounding its it's Johnson State #1H well showed production rates of 351 barrels of oil per day and 4,269 mcf of natural gas per day. That brings us to a total of 1,062 barrels of oil equivalent per day on the company's first well in Reeves County.
The press release also discussed the company's second Reeves County well, known as O'Brien #3H. The update was that the well has reached total depth. HUSA says that it is scheduled to commence hydraulic fracturing operations in the second half of this month. In a statement, John P. Boylan, CEO and President of Houstan American Energy, had the following to offer...
“We are very pleased to begin seeing the fruits of our investments in Reeves County. Our Johnson State #1H well is our first Reeves County well and initial results are encouraging and slightly exceed our original expectations. We plan to announce initial production rates from our O'Brien #3H well when they become available. While we remain in the very early stages of our planned operations in Reeves County, initial results appear to support our rationale for entry into the Permian (Delaware) Basin and the prospects of a multi-well drilling program on our initial acreage. The Johnson State #1H well is our first meaningful U.S. well and marks a milestone in the repositioning of our company as a Permian (Delaware) Basin participant. We expect to see meaningful improvements in our production, revenue and profitability by the end of Q3 2017.”
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What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on HUSA. In particular, we're interested in following the production reports surrounding the Johnson State #1H well as well as following progress on the commencement of operations at the O'Brien #3H well. Nonetheless, we'll continue to follow the story closely and bring the news to you as it breaks!
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