Houston Energy Corporation [NYSE: HUSA] is in an interesting zone right now. It was in a breakout two days ago, and while short sellers have tried to drive the price down, overall momentum remains bullish. At the moment, downside pressure is driven by a decline in demand for oil due to the COVID-19 pandemic. However, this is temporary as the world is inching closer to a vaccine. Once there is a breakthrough, the demand for oil and gas will rise, and Houston Energy is prepared for it. In early September, the company issued a statement that showed that it was investing in anticipation of an increase in demand. Among some of the oil and minerals, developments likely to play a role in its long-term value are as below.
Completion of the Well in Yoakum County
There have been some excavation activities at the Yoakum County, TX. The well called the Frost #2-H has been an ongoing project that is projected to have some promising outcome. Houston Energy expects the well to go on production starting this week. The company owns about 18.6% of the working interest in that well.
Increasing Acreage in Hockley County, TX
Houston also owns another mining area in Hockley County, TX. Recently, the company has increased this mining block to 6,336 acres up from 5,871 with Houston Energy owning a good 20% of the block. The company is now preparing to begin drilling operations that are set to begin around September 18, 2020. According to the operators’ projections, the depth of the well-drilled here will be about 10,500′ with a lateral length of about 5,224′. These are just the projected measurement to guide the drilling process.
When the above factors are coupled with an increase in positive sentiments in equity markets, this stock could be one of the big gainers in the remainder of 2020, and possibly all through 2021.
About Houston Energy Corp Inc
Houston American Energy is an exploration and mining company based in Houston Texas. It deals with oil, natural gas, and minerals exploration and mining mainly on the Permian Basin, on the onshore Gulf Coast Region in Louisiana and Texas.
The company also has contacts and concessions allowing them to operate in the South American country of Colombia. It was incorporated back in 2001 as an oil and gas exploration company dealing with both production and non-production assets. It has since been forming partnerships with other players in the industry in a bid to spread costs and maximize returns.