Investor Presentaiton

Resource 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

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