Houston American Energy Corp. Reports 31% Revenue Decline and Increased Net Loss in Q1 2025

Houston American Energy Corp. reported a significant decline in financial performance for the first quarter of 2025, with total oil and gas revenues falling 31% to $102,345, down from $147,686 in the same period of 2024. The decrease in revenue was primarily attributed to the shutdown of one well for a month during the quarter. The company also experienced a net loss of $1,032,483, compared to a much smaller loss of $15,699 in the prior year, resulting in a basic and diluted loss per share of $0.07.

Total operating expenses surged to $1,164,328 in the first quarter of 2025, a substantial increase from $555,815 in the same period of 2024. This rise was largely driven by a significant increase in general and administrative expenses, which climbed to $1,066,418 from $357,807 year-over-year. The increase in administrative costs was primarily due to professional fees related to the proposed acquisition of Abundia Global Impact Group, anticipated to close in the second quarter of 2025. Additionally, stock-based compensation decreased to $14,057 from $50,667, reflecting a decline in the company's share price.

Operationally, Houston American Energy maintained four gross producing wells in the U.S. Permian Basin, with net oil production decreasing to 935 barrels from 1,393 barrels in the previous year. The average sales price for oil was $71.17 per barrel, down from $73.98, while natural gas prices increased to $2.37 per Mcf from $1.29. The company reported a cash balance of $5,308,416 as of March 31, 2025, an increase from $4,059,182 at the end of 2024, primarily due to the issuance of 2,600,000 shares of common stock in January 2025, which generated approximately $3.8 million in net proceeds.

Looking ahead, the company indicated that it may require additional funding to support future drilling and acquisition activities, as it currently has limited authorized shares available for issuance. The management expressed confidence in its ability to fund operations for at least the next twelve months but acknowledged the potential need for external financing to pursue further acreage acquisitions or expand drilling plans. The company’s future performance will be influenced by various factors, including energy prices, the performance of existing wells, and market conditions.