Houston American Energy Corp. reported its financial results for the three and nine months ended September 30, 2024, revealing a challenging period marked by declining revenues and continued losses. The company’s oil and gas revenue for the nine months was $393,729, a significant decrease of 28% from $547,408 in the same period of 2023. However, for the three months ended September 30, 2024, revenue increased by 15% to $130,239 compared to $112,994 in the prior year, driven by higher oil and natural gas liquids sales.

Despite the quarterly revenue increase, the company faced a net loss before taxes of $(249,553) for the nine months ended September 30, 2024, contrasting with a net income of $27,162 in the same period of 2023. The net loss for the three months was $(144,768), compared to a profit of $223,368 in the same quarter of the previous year. The overall net loss for the nine months was $(249,553), compared to a net income of $27,162 in 2023.

Total operating expenses for the nine months decreased to $1,650,384 from $1,869,408 in 2023, while expenses for the three months rose to $568,512 from $515,678. Lease operating expenses surged by 55% for the nine months, totaling $534,443, and increased by 78% to $229,210 for the third quarter. General and administrative expenses also decreased, reflecting cost management efforts.

As of September 30, 2024, the company reported total assets of $10,193,343, down from $10,379,009 at the end of 2023. Cash reserves decreased to $2,847,296 from $4,059,182, and total current assets also fell. The company’s equity investment in Hupecol Meta LLC increased to $5,577,722, up from $4,505,358, indicating ongoing commitment to this partnership.

Strategically, Houston American Energy entered a joint venture with EOG Resources, Inc. in June 2024 to drill six wells in Texas, with an estimated cost of $550,000 for participation. The company also reported capital contributions to Hupecol Meta of $1,072,364 during the third quarter, with distributions received totaling $268,817.

The company continues to face challenges, including an accumulated deficit of $77.2 million and the need for additional funding for future drilling operations. Management believes it can fund operations for the next twelve months but acknowledges potential risks associated with financing availability and market conditions.