Houston American Energy (US:HUSA)2025-02-22 02:49Revenue and Production - Total oil and gas revenues decreased 30% to $560,180 in 2024 from $794,027 in 2023, attributed to an 18% decline in oil production and an 11% decline in gas production [186]. - The average sales price of natural gas decreased by 99% from 2023 levels [186]. - Gross oil production decreased to 5,992 Bbls in 2024 from 7,971 Bbls in 2023, a decline of approximately 25% [187]. - Net gas production fell to 53,476 Mcf in 2024 from 57,360 Mcf in 2023, representing a decrease of about 6.5% [187]. - Average oil sales price per barrel decreased to $73.08 in 2024 from $74.08 in 2023, a decline of approximately 1.4% [187]. - Total oil sales revenue in the U.S. for 2024 was $473,900, down from $590,586 in 2023, reflecting a decrease of about 19.7% [189]. Expenses and Impairments - An impairment charge of $6,668,634 was incurred in 2024, primarily due to a write-down of the investment in Hupecol Meta ($6,392,874) and impairment of U.S. assets ($275,760) [173]. - Lease operating expenses increased by 24% to $747,559 in 2024 from $473,925 in 2023 [189]. - General and administrative expenses rose by 32% to $2,123,051 in 2024 from $1,614,245 in 2023 [193]. - Impairment expense for Hupecol Meta was $6,392,874 in 2024, indicating a significant deterioration in earnings performance [192]. Cash Flow and Financing - Cash balance decreased to $2,960,151 at December 31, 2024, down from $4,059,182 at December 31, 2023 [198]. - Operating activities used cash of $1,536,515 in 2024, compared to $263,191 used in 2023, largely due to a payment to the former CEO [198]. - Financing activities provided cash of $2,325,000 in 2024, an increase from $1,652,000 in 2023, primarily from a private placement [200]. Investments and Future Plans - Capital investment expenditures for 2024 totaled $1,887,516, all related to direct investments in Hupecol Meta [164]. - Distributions from Hupecol Meta amounted to $922,719 in 2024, representing the company's share of distributable net income [165]. - The company plans to acquire Abundia Global Impact Group, LLC and RPD Technologies, LLC, focusing on developing a production plant for plastics and petrochemicals in the Houston area [177]. - The company anticipates production from six new wells on the Finkle State Unit to begin in the second quarter of 2025 [162]. Operational Changes - The company has 4 wells on production in the U.S. Permian Basin as of December 31, 2024 [163]. - In 2023, the company experienced lease expirations in Yoakum County, Texas, totaling 46 net acres [159]. - The company recognized a loss on disposal of oil and gas properties of $2,343,126 due to the termination of interests in Colombia [155].