#1houston american exploring the potential NYSE AMERICAN: HUSA Investor Presentation LD Microcap Conference December 4-7, 2017#2Forward-Looking Statements This presentation contains forward-looking statements, including those relating to our future financial and operational results, reserves or transactions, that are subject to various risks and uncertainties that could cause the Company's future plans, objectives and performance to differ materially from those in the forward-looking statements. Forward- looking statements can be identified by the use of forward-looking terminology such as "may", "expect," "intend," "plan," "subject to," "anticipate," "estimate," "continue," "present value," "future," "reserves," "appears," "prospective," or other variations thereof or comparable terminology. Factors that could cause or contribute to such differences could include, but are not limited to, those relating to the results of exploratory drilling activity, the Company's growth strategy, changes in oil and natural gas prices, operating risks, availability of drilling equipment, availability of capital, the inherent variability in early production tests, dependence on weather conditions, seasonality, expansion and other activities of competitors, changes in federal or state environmental laws and the administration of such laws, the general condition of the economy and its effect on the securities market, the availability, terms or completion of any strategic alternative or any transaction and other factors described in "Risk Factors" and elsewhere in the Company's Form 10-K and other filings with the SEC. While we believe our forward-looking statements are based upon reasonable assumptions, these are factors that are difficult to predict and that are influenced by economic and other conditions beyond our control. The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose proved, probable and possible reserves. We use certain terms in this document, such as non-proven, resource potential, Probable, Possible, Exploration and un-risked resource potential. These terms include reserves, and prospects and leads not rising to the level of or included in reserves, with substantially less certainty than proved reserves, and no discount or other adjustment is included in the presentation of such amounts. The recipient is urged to consider closely the disclosure in our Form 10-K and quarterly reports available from us at 801 Travis, Suite 1425, Houston, Texas 77002 or our website. You can also obtain these reports from the SEC by calling 1-800-SEC-0330. houston american 1#3Corporate Overview Houston-based exploration and production company with onshore properties in Reeves County in Texas, Louisiana, and Colombia; founded 2001 Two primary intangible assets: 1) Great operating partners in Texas (Founders Oil & Gas Operating, LLC) and Colombia (Bogata-based Hupecol Operating, LLC) 2) Clean company No debt; no legal issues Simple capital structure Low overhead of approximately $475k/qtr $50 million tax loss carryforward Two primary tangible assets with significant potential: 1) Permian Basin Undeveloped Acreage - 18.6% Average Working Interest in the Wolfcamp / Bone Spring / Avalon resource play covering 960 gross (179 net) acres in Reeves County, TX, Delaware sub-basin 11 net potential horizontal locations identified (5 zones) and peers are also testing the Wolfcamp C and X/Y 2) Colombia - Three Exploration Licenses 12.5% Working Interest in Heavy Oil Belt covering 392,000 gross (49,000 net) acres in the Northern Putumayo Basin ▶houston american 2#4Management and Directors John P. Boylan Chairman/CEO Chairman and CEO of Houston American since April 2015, member of the Board since 2006. As an industry consultant during the last decade, has held senior management roles in public and private energy company clients in both E&P (onshore and offshore) and oilfield services. A licensed CPA in Texas with B.B.A. in Accounting from the University of Texas and an M.B.A. in Finance, Economics and International Business from New York University. Directors R. Keith Grimes Stephen P. Hartzell Roy W. Jageman O. Lee Tawes President - International Division of Sierra Hamilton, an international service provider to oil and gas exploration and production companies offering specialized technical consulting and E&P technology to operators worldwide. Formerly CEO of predecessor company, Hamilton Group and with Expro Group in eastern hemisphere. Co-Owner of Southern Star Exploration, LLC, an independent oil and gas exploration company. Formerly, an independent Consulting Geologist and held various geological positions with Amoco Production Company, Tesoro Petroleum Corporation, Moore McCormack Energy and American Hunter Exploration. Over 25 years of experience in energy finance, mergers and acquisitions with Simmons & Co., Lehman Brothers, Solomon Brothers and Wasserstein Perella. Former CFO of Plantation Petroleum Company, Ranger Gas Storage, and Encore Acquisition Company, a publicly traded exploration and production company. Private investor. Formerly Head of Investment Banking and a Director of Northeast Securities, Inc. Previous management and research analyst positions with C.E. Unterberg, Towbin, Oppenheimer & Co. Inc., CIBC World Markets and Goldman Sachs & Co. from 1972 to 2001. houston american 3#5Capitalization¹ NYSE MKT: HUSA Common Shares (millions) Fully Diluted ¹,2,5 Market Capitalization $22.8 million 6.0 3.6 8% 5% Current Assets $0.5 million 8.5 11% Total Liabilities $0.6 million 45.2 11.6 15% 60% Stockholders' Equity $6.5 million Common Shares Outstanding 56.8 million ■ Public Float Insiders ■Convertible Preferred Warrants Common Shares Fully Diluted² 75.0 million ■ Options 1. 2. Excluding market capitalization (stated as of 12/4/17) all data is as of September 30, 2017 Includes (a) 8.5 million shares issuable on conversion of Series A and B Convertible Preferred Stock, (b) 3.6 million shares issuable upon exercise of Warrants, and (c) 6.0 million shares issuable upon exercise of options, of which 1.8 million options are significantly "out of the money". Excludes shares sold in ATM offering. houston american 4#6Permian Delaware Basin houston american 5#7Resource Plays in the Permian Basin ☐ The Permian Basin includes the Wolfcamp, Bone Spring, and Avalon formations.¹ Chaves DELAWARE BASIN Hockley Cochran HUSA's acreage is HUSA's acreage in Reeves County, TX is located in the most active county in the Permian Basin with more than 65 horizontal rigs running. Active Reeves County companies include Apache, Concho, EOG Resources, Centennial, Energen, Matador, PDC Energy, Cimarex, Carrizo and Felix. Centennial acquired Silverback Exploration's nearby acreage Q4 2016 because of its Wolfcamp, Bone Spring, and Avalon potential and on August 7 beat street production forecasts by 20%. HUSA's acreage is situated where all three shale formations/trends overlap. Yeso Trend NEW MEXICO TEXAS Eddy Abo Trend Lea Culberson Wolfcamp Shale DELAWARE Jeff Davis Yoakum Terry located where all MIDLAND Dav Games Wolfcamp/Bone Spring/Avalon formations overlap Cline Shale Mitchell Nola Martin Howard Andrews Glasstock 1 Coke Sterling Ector Loving Winkler Midian Spraberry Trend Avaloh | Ward Crane PERIOD SERIES WOLFCAMP PENN DELAWARE BASIN FORMATION LAMAR BELL CANYON CHERRY CANYON BRUSHY CANYON UPPER AVALON SHALE LOWER AVALON SHALE 1ST BONE SPRING 2ND BONE SPRING 3RD BONE SPRING WOLFCAMP PENNSYLVANIAN Bone Spring Trend CENTRAL BASIN PLATFORM Pecos Reagan Tom Green Irion Wolfcamp Oil Shale Crockett Schleicher PERIOD SERIES WOLFCAMP PENN CENTRAL PLATFORM FORMATION TANSILL YATES 7 RIVERS QUEEN GRAYBURG SAN ANDRE WARD YESO GLORIETA PADDOCK BLINEBRY TUBB DRINKARD SERIES PERIOD LEONARD GUADALAUPE ABO WOLFCAMP HUECO BURSUM PENNSYLVANIAN WOLFCAMP PENN HORSE MIDLAND BASIN FORMATION TANSILL YATES RIVERS QUEEN GRAYBURG WARD CLEAR FORK SAN ANDRES GLORIETA UPPER LEONARD UPPER SPRABERRY LOWER SPRABERRY DEAN WOLFCAMP PENNSYLVANIAN 1. U.S. Geologic Survey, Article titled "USGS Estimates 20 Billion Barrels of Oil in Texas' Wolfcamp Shale Formation" dated November 15, 2016. The USGS assessment of continuous oil only covers the Midland Basin portion of Texas' Permian Basin. HUSA's project is in the western side of the Permian Basin in the portion of the basin called the Delaware Basin. houston american 6#8Assets in the Delaware Basin In January 2017 acquired a 25% interest in initial ~720 gross leased acres for $5,500 per net acre from Founders Oil & Gas III, LLC (179 net leased acres). pooling increased gross acres to 960, with HUSA now owning 18.7% average WI. The O'Brien #3H well and the Johnson #1H well are both now producing oil and gas. Centennial's notation of five productive zones (see⭑ on pg 7.), equates to 60 gross (11.2 net) potential Hz well locations across our acreage. Wolfcamp A revised "Type Well" gross (8/8ths) economics:2 Wolfcamp Oil/Condensate/Gas Trend Map 1 Eddy Condensate-Rich Tre Gas-Rich Trend Our acreage is in a high- GOR, oil, gas and condensate-rich / underdeveloped area of the trend WW EUR NPV10 IRR F&D Discounted ROI Undiscounted ROI 1,512 MBOE $8.2 million 56% $6.17 / Boe 2.25x 3.8x 1. 2. Image taken from Centennial Goldman Sachs Global Energy Conference presentation - January 2017, page 5. Includes only wells reported as producing from Wolfcamp formation. Utilizing recent production information from new wells and decline projections per internal estimated reserve economic report using type well shown in Note 1. on pg 9. Includes $57/bo and $2.95/mcf flat, $6.88 flowing boepd gross LOE, $7.0 million gross D&C per Wood McKenzie for the Delaware basin. Gas-Oil Ratio (Mcfg/Bo) Culberson 10.0 9.0 8.0 70 6.0 JODAVN 5.0 4.0 3.0 2.0 1.0 Apache's Alpine High Field Oil-Rich Trend houston american 7#9Low Cost - Adjusted $/Permian Net Acre ($000's) $5.5 Southern Delaware Basin (TX) Northern Delaware Basin (NM) Midland Basin $47.4 $42.1 $39.6 $37.4 CENTENNIAL $32.6 $33.3 RESOURCE DEVELOPMENT NO $31.0 $31.0 $26.3 $27.1 $28.3 $28.5 I $24.2 $22.4 $19.5 $19.9 $20.1 $20.4 $17.5 A B C D ICDEV/CDEV/I E F G H I J K L M N O P 0 Source: CDEV 2Q presentation August 7, 2017 Houston American's purchase price was $5.5 per net acre. houston american 8#10Multi-Stacked Pay Zones The play contains multiple stacked pay zones that require horizontally ("Hz") drilled and hydraulically fractured wellbores Primary target - Wolfcamp A: - Internal gross undeveloped resource potential of 1,512 MBoe (HUSA's net 213MBoe) per Hz well¹ Potential for "Wine Rack" spacing, 330' lateral x 175' vertical, where shale thickness allows (i.e. Wolfcamp A - Upper and Lower)² Well cost for 4,500' lateral of $7.0 MM. 25 days to drill-14 to complete-20 days of flowback. Spacing allows for potentially eight 4,500' Hz wells per 640 acres in each stacked prospective pay zone ("bench"). Utilizing Centennial's Producing Zones (), calculate a total of potentially 40 Hz wells per 640 acres. -3,000 ft Bone Spring Avalon Wolfcamp Multiple Stacked Pay Zones³ GR RES POR KER SW LITH OIP G.SAT AAAAA CENTENNIAL First Second Equivalent to Middle Spraberry Shale of Midland Basin Third Equivalent to Lower Spraberry Shale of Midland Basin 3rd Sand Upper WC A Lower WC A WC B Centennial Potential Pay Zones Centennial Producing Zones 1. Internal resource estimate prepared assumes 18.7% net working interest (14.1% net revenue interest) and utilizes public information on trend released via Centennial Silverback Acquisition Overview -November 2016, page 9 averages 13 producing wells from Wolfcamp A - NSAI gross Oil EUR 457 MBO (total including gas and NGL EUR 1,275 BOE). WC C 2. Per Resolute Energy Corporation's press release dated December 19, 2016, page 2. 3. Image taken from Centennial Goldman Sachs Global Energy Conference presentation – January 2017, page 8. houston american 9#11Delaware Basin Development Brushy Canyon Avalon Shale 1st Bone Spring Sand 2nd Bone Spring Sand S Apache CONCHO CENTENNIAL devon ENERGEN. DIAMONDBACK Jagged Peak nenoble ENERGY energy $$ OXY $ PDC ENERGY CARRIZO Upper Wolfcamp B Lower Wolfcamp B Wolfcamp C EA 2nd Bone Spring Shale 3rd Bone Spring Carb $ $ EA SA 3rd Bone Spring Sand Upper Wolfcamp A (XY) $ Middle Wolfcamp A 69 SA Lower Wolfcamp A 69 69 $ $ $ $ $ EA EA $ $ $ $ SSSS SA EA EA 6969 $ EA 59 $ EA 69 SSS $ 5959 $ $ $ $ $ EA $ $ $ Wolfcamp D/Cline Development Zones 3 5 6 3 4 4 4 4 4 3 3 Total Potential zones 9 5 7 6 9 6 8 6 10 Potential Wells/DSU 26+ 30+ 25+ 25+ 29+ 36 28+ 24+ $ Current Development Zone Source: Company filings and presentations ✡ Potential Development Zone houston american 10#12Wolfcamp Shale Activity Map (Updated 12/02/17) Legend HUSA Acreage O Producing Well Permit O'Brien #1H (Founders) Permit: June 2017 PACIFIC BLK 55 T5S O'Brien #3H (Founders) First Prod: 8/2017 Test Rate: 1,039 BOE/D (359 BO/D and 4,077 MCF/D) Lateral: 4,575' Bench: Wolfcamp A State Mayfly 24 Units #1H, 2H, 3H and 11H (EOG) Completion Pending Lateral: ? 234 Coll 35 4944 85414, Q541 TEXAS T&PRR 400-Aores O'Brien P 36135618 Man View 3580435895 PSL PACIFIC 35897359053589435895 068 P 0 36068 6206 BLK 54 T5S Target: Wolfcamp A 34944)43 5121 36067 + 36166 136204 State Blue Wing 24 #1H (EOG) Permit: Sept 2016 368 Johnson State #3H (Founders) Permit: May 2017 State Firefly 24 Unit #1H (EOG) First Prod: 12/2016 Oil cum (300 days): 161 mbo Gas cum (300 days): 953 mmcf Prac IP: 1,749 BOE/D (994 BO/D and 4,532 MCF/D) Lateral: 6,865" Bench: Wolfcamp A uosuyor 320 Acres ° о ° A-1000 215 о A-34 Do P 36206 35876 PUBL A-471 A-4972 17 P 359983587 BLK 54 TSS 36 67 36166 Johnson State #1H (Founders) First Prod: 7/2017 Test Rate: 1,062 BOE/D (351 BO/D and 4,269 MCF/D) Lateral: 4,510' Bench: Wolfcamp A SCOOL State Cherokee 24 #1H (EOG) Permit: July 2015 P -4969 34309 о Enterprise C19 - 5 #1H (Energen) First prod: 6/2014 Oil cum: 126 mbo/ Gas cum: 1,698 mmcf Prac. IP: 165 BO/D and 1,739 MCF/D Lateral Length: approx. 4,650' Bench Wolfcamp Frac: ? Oatman C19 4A #4H (Silverback) P 35710 BLK C19 First prod: 3/2013 36017 36017 231 P 3605 R-36052 A-9202 5338 State Brackenridge 24 #1H (EOG) Permit July 2015i Coyote 25 #1H (EOG) Permit: Jan 2016 P&A'd 1/16 H&GNRR Oatman C18 - 26 #1H 35813 35710 35709 5058 36396 P 35930 5338 Operator: Centennial (Silverback) First prod: 6/2012 Oil cum: 72 mbo/ Gas cum: 560 mmcf Prac IP: 182 BO/D and 1,370 MCF/D Lateral Length: approx. 3,710' Target: Wolfcamp Frac: 10 stage, 2.7 MMlbs 36399 ° Oil cum: 57 mbo/ Gas cum: 695 mmcf Prac. IP: 127 BO/D and 1,050 MCF/D Lateral Length: approx. 4,550' Bench Wolfcamp Frac: 17 stage, 6 MMIbs Oatman C19-4A #3H (Silverback) First prod: 3/2013 Oil cum: 45 mbo/ Gas cum: 622 mmcf Prac. IP: 136 BO/D and 1,052 MCF/D Lateral Length: approx. 4,854' Bench: Wolfcamp Frac: 18 stage, 5.4MMlbs Oatman C19 4A #2H (Silverback) First prod: 3/2013 Oil cum: 56 mbo/ Gas cum: 1,189 Mcf Prac IP: 91 BO/D and 1,140 MCF/D Lateral Length: approx. 4,919' Bench: Wolfcamp Frac:20 stage, 6.9MMIbs Iceman 4-24-23 #1H (Silverback) First prod: 1/2017 Oil cum: 126 mbo/ Gas cum: 951 mmcf Prac IP: 883 BO/D, 4,671 MCF/D Lateral Length: ? Bench: Wolfcamp Folk Rolwing A4-34 #1H Operator: Centennial (Silverback) First prod: 2/2016 Oil cum: 145 mbo/ Gas cum 2,027 mmcf Prac IP: 563 BO/D and 5,408 MCF/D Lateral Length: approx. 6,506' Bench: Wolfcamp Frac? stages, 16.65 MMlbs ▶houston american 11#13Colombia Putumayo Basin ▶houston american 12#14Colombia Overview¹ HUSA's concessions are all operated by Hupecol Operating, LLC,2 a privately held E&P company with offices in Bogota, Colombia and Houston, Texas Hupecol operates significant production and gathering facilities in Colombia and domestically in the U.S. Hupecol has an extensive staff of regional managers, geologists, petroleum engineers and geophysical professionals Since 2003 HUSA has participated in 123 wells with Hupecol with a 67% completion success rate and has monetized assets realizing $69.9 million in after tax gross proceeds which equates to an ROI of 2.8X 1. 2. 12 77 75° 73° 71° Caribbean Sea Santa Marta Massif 10% Panama Lower Magdalena Valley 2 North Pacific Ocean Central Cordillera Suture Cauca omeral Western Cord Pacific Basin Cesar agdalena V Eastern Cordillera Guajira Bagin Llanero Suture Putumayo Basin Maracaibo Basin Merida Andes 69 Weet Barinas Basin Llanos Basin HUSA Guyana Shield Amazon Basin L In Colombia our operator is continuing to carry on discussions with federal and local officials in order to overcome opposition to their efforts to secure necessary permits to commence drilling operations on our Serrania concession. Until a satisfactory resolution is reached allowing the issuance of necessary permits, substituting equivalent prospects or otherwise compensating for the value of, and investments in, our Serrania concession, our operator is continuing to defer further efforts to commence drilling on the Serrania concession. Hughes Petroleum Colombia (Hupecol) owned by Dan A. Hughes Company, L.P. Source: www.dahughes.net 200 Km houston american 13#15Looking ahead houston american 14#16Houston American Game Plan ☐ Generate healthy returns and peer group leading growth while maintaining low leverage Evaluate opportunity to hedge oil and gas prices for new production from Reeves County horizontal wells Reach positive cash flow Add Permian proven reserve categories to reserve report for year end Pursue opportunistic leasing and/or acquisitions in the Delaware and Midland Basins Increase participation in acquisition targets Drill 6-8 gross wells during 2018 ▶houston american 15