Houston American Energy (HUSA) 10-Q 14 Aug 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2023	Aug. 14, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	1-32955
Entity Registrant Name	HOUSTON AMERICAN ENERGY CORP.
Entity Central Index Key	0001156041
Entity Tax Identification Number	76-0675953
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	801 Travis Street
Entity Address, Address Line Two	Suite 1425
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77002
City Area Code	(713)
Local Phone Number	222-6966
Title of 12(b) Security	Common Stock, $0.001 par value per share
Trading Symbol	HUSA
Security Exchange Name	NYSEAMER
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		10,906,353

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jun. 30, 2023	Dec. 31, 2022
CURRENT ASSETS
Cash	$ 5,532,834	$ 4,547,210
Accounts receivable – oil and gas sales	278,546	164,575
Prepaid expenses and other current assets	181,506	84,544
TOTAL CURRENT ASSETS	5,992,886	4,796,329
PROPERTY AND EQUIPMENT
Costs subject to amortization	62,774,064	62,786,267
Costs not being amortized	2,343,126	2,343,126
Office equipment	90,004	90,004
Total	65,207,194	65,219,397
Accumulated depletion, depreciation, amortization, and impairment	(60,693,947)	(60,602,051)
PROPERTY AND EQUIPMENT, NET	4,513,247	4,617,346
Equity investment – Hupecol Meta LLC	2,584,086	2,102,139
Right of use asset	179,366	212,202
Other assets	3,167	3,167
TOTAL ASSETS	13,272,752	11,731,183
CURRENT LIABILITIES
Accounts payable	79,678	113,741
Accrued expenses	17,354	16,035
Current portion of lease liability	70,183	65,385
TOTAL CURRENT LIABILITIES	167,215	195,161
LONG-TERM LIABILITIES
Lease liability, net of current portion	109,967	146,359
Reserve for plugging and abandonment costs	60,587	72,789
TOTAL LONG-TERM LIABILITIES	170,554	219,148
TOTAL LIABILITIES	337,769	414,309
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY
Common stock, par value $0.001; 12,000,000 shares authorized 10,906,353 and 10,327,646 shares issued and outstanding, respectively	10,907	10,328
Additional paid-in capital	86,908,002	85,094,266
Accumulated deficit	(73,983,926)	(73,787,720)
TOTAL SHAREHOLDERS’ EQUITY	12,934,983	11,316,874
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 13,272,752	$ 11,731,183

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	12,000,000	12,000,000
Common stock, shares issued	10,906,353	10,327,646
Common stock, shares outstanding	10,906,353	10,327,646

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
OIL AND GAS REVENUE	$ 204,390	$ 462,989	$ 434,414	$ 886,809
EXPENSES OF OPERATIONS
Lease operating expense and severance tax	101,714	150,485	215,400	311,757
General and administrative expense	716,615	258,896	1,046,434	628,996
Depreciation and depletion	44,941	51,501	91,896	109,740
Total operating expenses	863,270	460,882	1,353,730	1,050,493
Income (loss) from operations	(658,880)	2,107	(919,316)	(163,684)
OTHER INCOME
Interest income	44,135	2,258	74,635	2,489
Other income	314,364		648,475
Total other income	358,499	2,258	723,110	2,489
Net income (loss) before taxes	(300,381)	4,365	(196,206)	(161,195)
Income tax expense
Net income (loss)	$ (300,381)	$ 4,365	$ (196,206)	$ (161,195)
Basic income (loss) per common share	$ (0.03)	$ 0	$ (0.02)	$ (0.02)
Basic weighted average number of common shares outstanding	10,896,996	9,923,338	10,659,076	9,923,338

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance, value at Dec. 31, 2021	$ 9,928	$ 83,345,456	$ (73,043,441)	$ 10,311,943
Balance, shares at Dec. 31, 2021	9,928,338
Stock-based compensation		85,485		85,485
Net income (loss)			(165,560)	(165,560)
Balance, value at Mar. 31, 2022	$ 9,928	83,430,941	(73,209,001)	10,231,868
Balance, shares at Mar. 31, 2022	9,928,338
Balance, value at Dec. 31, 2021	$ 9,928	83,345,456	(73,043,441)	10,311,943
Balance, shares at Dec. 31, 2021	9,928,338
Net income (loss)				(161,195)
Balance, value at Jun. 30, 2022	$ 9,928	83,456,461	(73,204,636)	10,261,753
Balance, shares at Jun. 30, 2022	9,928,338
Balance, value at Mar. 31, 2022	$ 9,928	83,430,941	(73,209,001)	10,231,868
Balance, shares at Mar. 31, 2022	9,928,338
Stock-based compensation		25,520		25,520
Net income (loss)			4,365	4,365
Balance, value at Jun. 30, 2022	$ 9,928	83,456,461	(73,204,636)	10,261,753
Balance, shares at Jun. 30, 2022	9,928,338
Balance, value at Dec. 31, 2022	$ 10,328	85,094,266	(73,787,720)	11,316,874
Balance, shares at Dec. 31, 2022	10,327,646
Stock-based compensation		84,445		84,445
Issuance of common stock	$ 295	901,205		901,500
Issuance of common stock, shares	294,872
Net income (loss)			104,175	104,175
Balance, value at Mar. 31, 2023	$ 10,623	86,079,916	(73,683,545)	12,406,994
Balance, shares at Mar. 31, 2023	10,622,518
Balance, value at Dec. 31, 2022	$ 10,328	85,094,266	(73,787,720)	11,316,874
Balance, shares at Dec. 31, 2022	10,327,646
Net income (loss)				(196,206)
Balance, value at Jun. 30, 2023	$ 10,907	86,908,002	(73,983,926)	12,934,983
Balance, shares at Jun. 30, 2023	10,906,353
Balance, value at Mar. 31, 2023	$ 10,623	86,079,916	(73,683,545)	12,406,994
Balance, shares at Mar. 31, 2023	10,622,518
Stock-based compensation		77,870		77,870
Issuance of common stock	$ 284	750,216		750,500
Issuance of common stock, shares	283,835
Net income (loss)			(300,381)	(300,381)
Balance, value at Jun. 30, 2023	$ 10,907	$ 86,908,002	$ (73,983,926)	$ 12,934,983
Balance, shares at Jun. 30, 2023	10,906,353

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (196,206)	$ (161,195)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation and depletion	91,896	109,740
Accretion of asset retirement obligation	2,678	3,697
Stock-based compensation	162,315	111,005
Amortization of right of use asset	32,836	30,169
Earnings distribution from Hupecol Meta LLC	(648,475)
Changes in operating assets and liabilities:
Increase in accounts receivable	(113,971)	(52,164)
Increase in prepaid expenses and other current assets	534,155	(14,467)
Decrease in accounts payable and accrued expenses	(51,101)	(24,552)
Decrease in operating lease liability	(31,594)	(31,594)
Net cash used in operating activities	(217,467)	(29,361)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for the acquisition and development of oil and gas properties		(14,162)
Payments for capital contribution for equity investment	(448,909)	(248,282)
Net cash used in investing activities	(448,909)	(262,444)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock for cash, net of offering costs	1,652,000
Net cash provided by financing activities	1,652,000
Increase (decrease) in cash	985,624	(291,805)
Cash, beginning of period	4,547,210	4,894,577
Cash, end of period	5,532,834	4,602,772
SUPPLEMENTAL CASH FLOW INFORMATION
Interest paid
Taxes paid
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES
Changes in estimate of asset retirement obligations, net	1,259
Changes in accrued equity investment contributions and distributions	$ 33,038

BASIS OF PRESENTATION AND SIGNI

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited consolidated financial statements of Houston American Energy Corp., a Delaware corporation (the “Company”), have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q. They do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for a complete financial presentation. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation, have been included in the accompanying unaudited consolidated financial statements. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the full year. These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes, which are included as part of the Company’s Form 10-K for the year ended December 31, 2022. Consolidation The accompanying consolidated financial statements include all accounts of the Company and its subsidiaries (HAEC Louisiana E&P, Inc., HAEC Oklahoma E&P, Inc., and HAEC Caddo Lake E&P, Inc.). All significant inter-company balances and transactions have been eliminated in consolidation. Liquidity and Capital Requirements The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-month period following the issuance date of these consolidated financial statements. With limited exceptions, the Company has incurred continuing losses since 2011, with an accumulated deficit of $ 74 The Company believes that it has the ability to fund, from cash on hand, its operating costs and anticipated drilling operations for at least the next twelve months following the issuance of these financial statements. The actual timing and number of wells drilled during 2023 and beyond will be principally controlled by the operators of the Company’s acreage, based on a number of factors, including but not limited to availability of financing, performance of existing wells on the subject acreage, energy prices and industry condition and outlook, costs of drilling and completion services and equipment and other factors beyond the Company’s control or that of its operators. In the event that the Company pursues additional acreage acquisitions or expands its drilling plans, the Company may be required to secure additional funding beyond our resources on hand. While the Company may, among other efforts, seek additional funding from “at-the-market” sales of common stock, and private sales of equity and debt securities, it presently does not have any commitments to provide additional funding, has limited shares of common stock available to support capital raising efforts and there can be no assurance that the Company can secure the necessary capital to fund its share of drilling, acquisition or other costs on acceptable terms or at all. If, for any reason, the Company is unable to fund its share of drilling and completion costs, it would forego participation in one or more of such wells. In such event, the Company may be subject to penalties or to the possible loss of some of its rights and interests in prospects with respect to which it fails to satisfy funding obligations and it may be required to curtail operations and forego opportunities. Accounting Principles and Use of Estimates The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. In preparing financial statements, management makes informed judgments and estimates that affect the reported amounts of assets and liabilities as of the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management reviews its estimates, including those related to such potential matters as litigation, environmental liabilities, income taxes and the related valuation allowance, determination of proved reserves of oil and gas and asset retirement obligations. Changes in facts and circumstances may result in revised estimates and actual results may differ from these estimates. Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk include cash, cash equivalents (if any) and any marketable securities (if any). The Company had cash deposits of $ 5.1 250,000 5,500 Earnings (Loss) per Share Basic earnings (loss) per share is computed by dividing net earnings (loss) available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted in common shares that then shared in the earnings of the Company. In periods in which the Company reports a net loss, dilutive securities are excluded from the calculation of diluted net loss per share amounts as the effect would be anti-dilutive. Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments Financial Instruments — Credit Losses

REVENUE FROM CONTRACTS WITH CUS

REVENUE FROM CONTRACTS WITH CUSTOMERS	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
REVENUE FROM CONTRACTS WITH CUSTOMERS	NOTE 2 – REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenue from Contracts with Customers The following table disaggregates revenue by significant product type for the three and six-month periods ended June 30, 2023 and 2022: SCHEDULE OF DISAGGREGATES REVENUE BY SIGNIFICANT PRODUCT Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Oil sales $ 150,767 $ 263,427 $ 313,049 $ 542,905 Natural gas sales 16,963 119,824 41,874 191,206 Natural gas liquids sales 36,660 79,738 79,491 152,698 Total revenue from customers $ 204,390 $ 462,989 $ 434,414 $ 886,809 There were no

OIL AND GAS PROPERTIES

OIL AND GAS PROPERTIES	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
OIL AND GAS PROPERTIES	NOTE 3 – OIL AND GAS PROPERTIES During the six months ended June 30, 2023, the Company incurred costs attributable to final expenses related to the plugging and abandonment of the Lou Brock well. During the three and six months ended June 30, 2023, the Company recorded depletion expense of $ 44,941 79,640 91,896 109,740 Geographical Information The Company currently has properties in two geographical areas, the United States and Colombia. Revenues for the six months ended June 30, 2023 and long lived assets (net of depletion, amortization, and impairments) as of June 30, 2023 attributable to each geographical area are presented below: SCHEDULE OF REVENUES AND LONG LIVED ASSETS ATTRIBUTABLE TO GEOGRAPHICAL AREA Six Months Ended June 30, 2023 As of June 30, 2023 Revenues Long Lived Assets, Net United States $ 434,414 $ 2,170,121 Colombia — 2,343,126 Total $ 434,414 $ 4,513,247 Revenues and long-lived assets attributable to the Company’s investments in Hupecol Meta LLC (“Hupecol Meta”), and its underlying assets and operations in Colombia, are excluded from the above table.

EQUITY INVESTMENT

EQUITY INVESTMENT	6 Months Ended
	Jun. 30, 2023
Equity Investment
EQUITY INVESTMENT	NOTE 4 – EQUITY INVESTMENT The Company’s carrying value of its holdings in Hupecol Meta is reflected in the line item “equity investment – Hupecol Meta LLC” on the Company’s Consolidated Balance Sheet. During the six months ended June 30, 2023, the Company made capital contributions totaling $ 481,947 648,475

STOCK-BASED COMPENSATION EXPENS

STOCK-BASED COMPENSATION EXPENSE	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION EXPENSE	NOTE 5 – STOCK-BASED COMPENSATION EXPENSE In 2008, the Company adopted the Houston American Energy Corp. 2008 Equity Incentive Plan (the “2008 Plan”). The terms of the 2008 Plan, as amended in 2012 and 2013, allow for the issuance of up to 480,000 In 2017, the Company adopted the Houston American Energy Corp. 2017 Equity Incentive Plan (the “2017 Plan”). The terms of the 2017 Plan, allow for the issuance of up to 400,000 In 2021, the Company adopted the Houston American Energy 2021 Equity Incentive Plan (the “2021 Plan” and, together with the 2008 Plan and the 2017 Plan, the “Plans”). The terms of the 2021 Plan allow for the issuance of up to 500,000 Persons eligible to participate in the Plans are key employees, consultants and directors of the Company. The Company periodically grants options to employees, directors and consultants under the Plans and is required to make estimates of the fair value of the related instruments and recognize expense over the period benefited, usually the vesting period. Stock Option Activity A summary of stock option activity and related information for the six months ended June 30, 2023 is presented below: SUMMARY OF STOCK OPTION ACTIVITY Options Weighted-Average Exercise Price Aggregate Intrinsic Value Outstanding at January 1, 2023 944,177 $ 2.08 Granted 60,000 2.09 Exercised — — Forfeited — — Outstanding at June 30, 2023 1,004,177 $ 2.45 $ 286,160 Exercisable at June 30, 2023 958,851 $ 2.46 $ 284,240 During the six months ended June 30, 2023, options to purchase an aggregate of 60,000 2.09 20% The grant date fair value of these stock options was $119,252 based on the Black-Scholes Option Pricing model based on the following assumptions: market value of common stock on grant date – $2.13; risk free interest rate based on the applicable US Treasury bill rate – 0%; dividend yield – 0%; volatility factor based on the trading history of the Company – 116%; weighted average expected life in years – 10; and expected forfeiture rate – 0%. During the three and six months ended June 30, 2023, the Company recognized $ 77,870 162,315 119,253 2.23 5.78 6.13 As of June 30, 2023, there were 181,333 Stock-Based Compensation Expense The following table reflects total stock-based compensation recorded by the Company for the six months ended June 30, 2023 and 2022: SCHEDULE OF STOCK-BASED COMPENSATION 2023 2022 Six Months Ended June 30, 2023 2022 Stock-based compensation expense included in general and administrative expense $ 162,315 $ 111,005 Earnings per share effect of share-based compensation expense – basic and diluted $ (0.02 ) $ (0.01 )

CAPITAL STOCK

CAPITAL STOCK	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
CAPITAL STOCK	NOTE 6 – CAPITAL STOCK Common Stock – At-the Market Offering In November 2022, the Company entered into an At-the-Market Sales Agreement (the “Sales Agreement”) with Univest Securities, LLC (“Univest”) pursuant to which the Company could sell (the “2022 ATM Offering”), at its option, up to an aggregate of $ 3.5 3 25,000 During the six months ended June 30, 2023, the Company sold an aggregate of 578,707 1,652,000 Warrants A summary of warrant activity and related information for 2023 is presented below: SUMMARY OF WARRANT ACTIVITY Warrants Weighted-Average Exercise Price Aggregate Intrinsic Value Outstanding at January 1, 2023 94,400 $ 2.46 Issued — — Exercised — — Expired — — Outstanding at June 30, 2023 94,400 $ 2.46 $ - Exercisable at June 30, 2023 94,400 $ 2.46 $ -

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
EARNINGS PER COMMON SHARE	NOTE 7 – EARNINGS PER COMMON SHARE Earnings (loss) per common share-basic is calculated by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Net income (loss) per common share-diluted assumes the conversion of all potentially dilutive securities and is calculated by dividing net (loss) income by the sum of the weighted average number of shares of common stock, as defined above, outstanding plus potentially dilutive securities. Net income (loss) per common share-diluted considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares, as defined above, would have an anti-dilutive effect. The calculation of earnings (loss) per common share for the periods indicated below were as follows: SCHEDULE OF EARNINGS (LOSS) PER COMMON SHARE Numerator: 2023 2022 2023 2022 Three Months Ended June 30, Six Months Ended June 30, Numerator: 2023 2022 2023 2022 Net income (loss) $ (300,381 ) $ 4,365 $ (196,206 ) $ (161,195 ) Effect of common stock equivalents — — — — Net income (loss) adjusted for common stock equivalents $ (300,381 ) $ 4,365 $ (196,206 ) $ (161,195 ) Denominator: Weighted average common shares – basic 10,896,996 9,923,338 10,659,076 9,923,338 Dilutive effect of common stock equivalents: Options and warrants — 455,953 — — Denominator: Weighted average common shares – diluted 10,896,996 10,379,291 10,659,076 9,923,338 Earnings (loss) per common share – basic $ (0.03 ) $ 0.00 $ (0.02 ) $ (0.02 ) Earnings (loss) per common share – diluted $ (0.03 ) $ 0.00 $ (0.02 ) $ (0.02 ) For the three and six months ended June 30, 2023 and 2022, the following warrants and options to purchase shares of common stock were excluded from the computation of diluted net loss per share, as the inclusion of such shares would be anti-dilutive: SCHEDULE OF ANTI-DILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF DILUTED NET INCOME LOSS 2023 2022 2023 2022 Six Months Ended June 30, Three Months Ended June 30, 2023 2022 2023 2022 Stock warrants 94,400 94,400 94,400 94,400 Stock options 1,004,177 74,000 1,004,177 990,177 Total 1,098,577 168,400 1,098,577 1,084,577

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 8 – COMMITMENTS AND CONTINGENCIES Lease Commitment The Company leases office facilities under an operating lease agreement that expires October 31, 2025 21,560 43,121 22,161 44,322 2.3 12 SCHEDULE OF FUTURE PAYMENTS UNDER LEASE AGREEMENT Year Amount 2023 $ 43,770 2024 88,801 2025 75,051 Total future lease payments 207,622 Less: imputed interest 27,472 Present value of future operating lease payments 180,150 Less: current portion of operating lease liabilities 70,183 Operating lease liabilities, net of current portion $ 109,967 Right of use assets $ 179,366 Total base rental expense was $ 22,570 and $ 22,161 for the three months ended June 30, 2023 and 2022, respectively, and $ 45,731 and $ 46,836 for the six months ended June 30, 2023 and 2022, respectively. The Company does not have any capital leases or other operating lease commitments.

BASIS OF PRESENTATION AND SIG_2

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Consolidation	Consolidation The accompanying consolidated financial statements include all accounts of the Company and its subsidiaries (HAEC Louisiana E&P, Inc., HAEC Oklahoma E&P, Inc., and HAEC Caddo Lake E&P, Inc.). All significant inter-company balances and transactions have been eliminated in consolidation.
Liquidity and Capital Requirements	Liquidity and Capital Requirements The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-month period following the issuance date of these consolidated financial statements. With limited exceptions, the Company has incurred continuing losses since 2011, with an accumulated deficit of $ 74 The Company believes that it has the ability to fund, from cash on hand, its operating costs and anticipated drilling operations for at least the next twelve months following the issuance of these financial statements. The actual timing and number of wells drilled during 2023 and beyond will be principally controlled by the operators of the Company’s acreage, based on a number of factors, including but not limited to availability of financing, performance of existing wells on the subject acreage, energy prices and industry condition and outlook, costs of drilling and completion services and equipment and other factors beyond the Company’s control or that of its operators. In the event that the Company pursues additional acreage acquisitions or expands its drilling plans, the Company may be required to secure additional funding beyond our resources on hand. While the Company may, among other efforts, seek additional funding from “at-the-market” sales of common stock, and private sales of equity and debt securities, it presently does not have any commitments to provide additional funding, has limited shares of common stock available to support capital raising efforts and there can be no assurance that the Company can secure the necessary capital to fund its share of drilling, acquisition or other costs on acceptable terms or at all. If, for any reason, the Company is unable to fund its share of drilling and completion costs, it would forego participation in one or more of such wells. In such event, the Company may be subject to penalties or to the possible loss of some of its rights and interests in prospects with respect to which it fails to satisfy funding obligations and it may be required to curtail operations and forego opportunities.
Accounting Principles and Use of Estimates	Accounting Principles and Use of Estimates The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. In preparing financial statements, management makes informed judgments and estimates that affect the reported amounts of assets and liabilities as of the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management reviews its estimates, including those related to such potential matters as litigation, environmental liabilities, income taxes and the related valuation allowance, determination of proved reserves of oil and gas and asset retirement obligations. Changes in facts and circumstances may result in revised estimates and actual results may differ from these estimates.
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk include cash, cash equivalents (if any) and any marketable securities (if any). The Company had cash deposits of $ 5.1 250,000 5,500
Earnings (Loss) per Share	Earnings (Loss) per Share Basic earnings (loss) per share is computed by dividing net earnings (loss) available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted in common shares that then shared in the earnings of the Company. In periods in which the Company reports a net loss, dilutive securities are excluded from the calculation of diluted net loss per share amounts as the effect would be anti-dilutive.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments Financial Instruments — Credit Losses

REVENUE FROM CONTRACTS WITH C_2

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
SCHEDULE OF DISAGGREGATES REVENUE BY SIGNIFICANT PRODUCT	The following table disaggregates revenue by significant product type for the three and six-month periods ended June 30, 2023 and 2022: SCHEDULE OF DISAGGREGATES REVENUE BY SIGNIFICANT PRODUCT Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Oil sales $ 150,767 $ 263,427 $ 313,049 $ 542,905 Natural gas sales 16,963 119,824 41,874 191,206 Natural gas liquids sales 36,660 79,738 79,491 152,698 Total revenue from customers $ 204,390 $ 462,989 $ 434,414 $ 886,809

OIL AND GAS PROPERTIES (Tables)

OIL AND GAS PROPERTIES (Tables)	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
SCHEDULE OF REVENUES AND LONG LIVED ASSETS ATTRIBUTABLE TO GEOGRAPHICAL AREA	The Company currently has properties in two geographical areas, the United States and Colombia. Revenues for the six months ended June 30, 2023 and long lived assets (net of depletion, amortization, and impairments) as of June 30, 2023 attributable to each geographical area are presented below: SCHEDULE OF REVENUES AND LONG LIVED ASSETS ATTRIBUTABLE TO GEOGRAPHICAL AREA Six Months Ended June 30, 2023 As of June 30, 2023 Revenues Long Lived Assets, Net United States $ 434,414 $ 2,170,121 Colombia — 2,343,126 Total $ 434,414 $ 4,513,247

STOCK-BASED COMPENSATION EXPE_2

STOCK-BASED COMPENSATION EXPENSE (Tables)	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
SUMMARY OF STOCK OPTION ACTIVITY	A summary of stock option activity and related information for the six months ended June 30, 2023 is presented below: SUMMARY OF STOCK OPTION ACTIVITY Options Weighted-Average Exercise Price Aggregate Intrinsic Value Outstanding at January 1, 2023 944,177 $ 2.08 Granted 60,000 2.09 Exercised — — Forfeited — — Outstanding at June 30, 2023 1,004,177 $ 2.45 $ 286,160 Exercisable at June 30, 2023 958,851 $ 2.46 $ 284,240
SCHEDULE OF STOCK-BASED COMPENSATION	The following table reflects total stock-based compensation recorded by the Company for the six months ended June 30, 2023 and 2022: SCHEDULE OF STOCK-BASED COMPENSATION 2023 2022 Six Months Ended June 30, 2023 2022 Stock-based compensation expense included in general and administrative expense $ 162,315 $ 111,005 Earnings per share effect of share-based compensation expense – basic and diluted $ (0.02 ) $ (0.01 )

CAPITAL STOCK (Tables)

CAPITAL STOCK (Tables)	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
SUMMARY OF WARRANT ACTIVITY	A summary of warrant activity and related information for 2023 is presented below: SUMMARY OF WARRANT ACTIVITY Warrants Weighted-Average Exercise Price Aggregate Intrinsic Value Outstanding at January 1, 2023 94,400 $ 2.46 Issued — — Exercised — — Expired — — Outstanding at June 30, 2023 94,400 $ 2.46 $ - Exercisable at June 30, 2023 94,400 $ 2.46 $ -

EARNINGS PER COMMON SHARE (Tabl

EARNINGS PER COMMON SHARE (Tables)	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
SCHEDULE OF EARNINGS (LOSS) PER COMMON SHARE	The calculation of earnings (loss) per common share for the periods indicated below were as follows: SCHEDULE OF EARNINGS (LOSS) PER COMMON SHARE Numerator: 2023 2022 2023 2022 Three Months Ended June 30, Six Months Ended June 30, Numerator: 2023 2022 2023 2022 Net income (loss) $ (300,381 ) $ 4,365 $ (196,206 ) $ (161,195 ) Effect of common stock equivalents — — — — Net income (loss) adjusted for common stock equivalents $ (300,381 ) $ 4,365 $ (196,206 ) $ (161,195 ) Denominator: Weighted average common shares – basic 10,896,996 9,923,338 10,659,076 9,923,338 Dilutive effect of common stock equivalents: Options and warrants — 455,953 — — Denominator: Weighted average common shares – diluted 10,896,996 10,379,291 10,659,076 9,923,338 Earnings (loss) per common share – basic $ (0.03 ) $ 0.00 $ (0.02 ) $ (0.02 ) Earnings (loss) per common share – diluted $ (0.03 ) $ 0.00 $ (0.02 ) $ (0.02 )
SCHEDULE OF ANTI-DILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF DILUTED NET INCOME LOSS	For the three and six months ended June 30, 2023 and 2022, the following warrants and options to purchase shares of common stock were excluded from the computation of diluted net loss per share, as the inclusion of such shares would be anti-dilutive: SCHEDULE OF ANTI-DILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF DILUTED NET INCOME LOSS 2023 2022 2023 2022 Six Months Ended June 30, Three Months Ended June 30, 2023 2022 2023 2022 Stock warrants 94,400 94,400 94,400 94,400 Stock options 1,004,177 74,000 1,004,177 990,177 Total 1,098,577 168,400 1,098,577 1,084,577

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
SCHEDULE OF FUTURE PAYMENTS UNDER LEASE AGREEMENT	SCHEDULE OF FUTURE PAYMENTS UNDER LEASE AGREEMENT Year Amount 2023 $ 43,770 2024 88,801 2025 75,051 Total future lease payments 207,622 Less: imputed interest 27,472 Present value of future operating lease payments 180,150 Less: current portion of operating lease liabilities 70,183 Operating lease liabilities, net of current portion $ 109,967 Right of use assets $ 179,366

BASIS OF PRESENTATION AND SIG_3

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Line of Credit Facility [Line Items]
Accumulated decifit	$ 73,983,926	$ 73,787,720
Cash deposits	5,100,000
Cash FDIC insured amount	250,000
Colombian Banks [Member]
Line of Credit Facility [Line Items]
Cash deposits	$ 5,500

SCHEDULE OF DISAGGREGATES REVEN

SCHEDULE OF DISAGGREGATES REVENUE BY SIGNIFICANT PRODUCT (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Total revenue from customers	$ 204,390	$ 462,989	$ 434,414	$ 886,809
Oil Sales [Member]
Disaggregation of Revenue [Line Items]
Total revenue from customers	150,767	263,427	313,049	542,905
Natural Gas Sales [Member]
Disaggregation of Revenue [Line Items]
Total revenue from customers	16,963	119,824	41,874	191,206
Natural Gas Liquids Sales [Member]
Disaggregation of Revenue [Line Items]
Total revenue from customers	$ 36,660	$ 79,738	$ 79,491	$ 152,698

REVENUE FROM CONTRACTS WITH C_3

REVENUE FROM CONTRACTS WITH CUSTOMERS (Details Narrative) - USD ($)	Jun. 30, 2023	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Remaining performance obligations	$ 0	$ 0

SCHEDULE OF REVENUES AND LONG L

SCHEDULE OF REVENUES AND LONG LIVED ASSETS ATTRIBUTABLE TO GEOGRAPHICAL AREA (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 204,390	$ 462,989	$ 434,414	$ 886,809
Long Lived Assets, Net	4,513,247		4,513,247
UNITED STATES
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues			434,414
Long Lived Assets, Net	2,170,121		2,170,121
COLOMBIA
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues
Long Lived Assets, Net	$ 2,343,126		$ 2,343,126

OIL AND GAS PROPERTIES (Details

OIL AND GAS PROPERTIES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting [Abstract]
Depletion expense	$ 44,941	$ 91,896	$ 79,640	$ 109,740

EQUITY INVESTMENT (Details Narr

EQUITY INVESTMENT (Details Narrative)	6 Months Ended
	Jun. 30, 2023 USD ($)
Equity Investment
Direct investment operations	$ 481,947
Distributions investment operations	$ 648,475

SUMMARY OF STOCK OPTION ACTIVIT

SUMMARY OF STOCK OPTION ACTIVITY (Details)	6 Months Ended
	Jun. 30, 2023 USD ($) $ / shares shares
Share-Based Payment Arrangement [Abstract]
Options, Outstanding, Beginning Balance | shares	944,177
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ / shares	$ 2.08
Options, Granted | shares	60,000
Weighted-Average Exercise Price, Granted | $ / shares	$ 2.09
Options, Exercised | shares
Weighted-Average Exercise Price, Exercised | $ / shares
Options, Forfeited | shares
Weighted-Average Exercise Price, Forfeited | $ / shares
Options, Outstanding, Ending Balance | shares	1,004,177
Weighted-Average Exercise Price, Outstanding, Ending Balance | $ / shares	$ 2.45
Aggregate Intrinsic Value, Outstanding, Ending Balance | $	$ 286,160
Options, Exercisable, Ending Balance | shares	958,851
Weighted-Average Exercise Price, Exercisable, Ending Balance | $ / shares	$ 2.46
Aggregate Intrinsic Value, Exercisable, Ending Balance | $	$ 284,240

SCHEDULE OF STOCK-BASED COMPENS

SCHEDULE OF STOCK-BASED COMPENSATION (Details) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
Stock-based compensation expense included in general and administrative expense	$ 162,315	$ 111,005
Earnings per share effect of share-based compensation expense - basic	$ (0.02)	$ (0.01)
Earnings per share effect of share-based compensation expense - diluted	$ (0.02)	$ (0.01)

STOCK-BASED COMPENSATION EXPE_3

STOCK-BASED COMPENSATION EXPENSE (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2021	Dec. 31, 2017	Dec. 31, 2008
Common Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares issued	283,835	294,872
Common Stock [Member] | Director [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares issued			60,000
Exercise price	$ 2.09		$ 2.09
Vesting percentage			20%
Stcok option description			The grant date fair value of these stock options was $119,252 based on the Black-Scholes Option Pricing model based on the following assumptions: market value of common stock on grant date – $2.13; risk free interest rate based on the applicable US Treasury bill rate – 0%; dividend yield – 0%; volatility factor based on the trading history of the Company – 116%; weighted average expected life in years – 10; and expected forfeiture rate – 0%.
2008 Equity Incentive Plan [Member] | Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of options authorized to purchase shares of common stock						480,000
2017 Equity Incentive Plan [Member] | Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of options authorized to purchase shares of common stock					400,000
2021 Equity Incentive Plan [Member] | Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of options authorized to purchase shares of common stock				500,000
2021 Equity Incentive Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share based compensation	$ 77,870		$ 162,315
Unrecognized share-based compensation expense related to non-vested stock options	$ 119,253		$ 119,253
Weighted average period for unrecognition of compensation expense			2 years 2 months 23 days
Weighted average remaining contractual term of the outstanding options			5 years 9 months 10 days
Weighted average remaining contractual term of the exercisable options			6 years 1 month 17 days
Common stock available for issuance	181,333		181,333

SUMMARY OF WARRANT ACTIVITY (De

SUMMARY OF WARRANT ACTIVITY (Details)	6 Months Ended
	Jun. 30, 2023 USD ($) $ / shares shares
Equity [Abstract]
Warrants Outstanding, Beginning Balance	94,400
Weighted-Average Exercise Price Outstanding, Beginning Balance | $ / shares	$ 2.46
Warrants, Issued
Weighted-Average Exercise Price, Issued | $ / shares
Warrants, Exercised
Weighted-Average Exercise Price, Exercised | $ / shares
Warrants, Expired
Weighted-Average Exercise Price, Expired | $ / shares
Warrants Outstanding, Ending Balance	94,400
Weighted-Average Exercise Price Outstanding, Ending Balance | $ / shares	$ 2.46
Aggregate Intrinsic Value, Outstanding Ending Balance | $
Warrants Outstanding, Exercisable	94,400
Weighted-Average Exercise Price Outstanding, Exercisable	2.46
Aggregate Intrinsic Value, Exercisable | $

CAPITAL STOCK (Details Narrativ

CAPITAL STOCK (Details Narrative) - USD ($)	1 Months Ended	6 Months Ended
	Nov. 30, 2022	Jun. 30, 2023
Sales Agreement [Member] | Univest Securities, LLC [Member]
Commission perecentage from gross proceeds of sale of share	3%
Sales Agreement [Member] | Univest Securities, LLC [Member] | Maximum [Member]
Proceeds from sale of stock	$ 3,500,000
2022 ATM Offering [Member]
Proceeds from sale of stock		$ 1,652,000
Number shares sold		578,707
2022 ATM Offering [Member] | Univest Securities, LLC [Member]
Reimbursement of expenses connection with offering	$ 25,000

SCHEDULE OF EARNINGS (LOSS) PER

SCHEDULE OF EARNINGS (LOSS) PER COMMON SHARE (Details) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Net income (loss)	$ (300,381)	$ 104,175	$ 4,365	$ (165,560)	$ (196,206)	$ (161,195)
Effect of common stock equivalents
Net income (loss) adjusted for common stock equivalents	$ (300,381)		$ 4,365		$ (196,206)	$ (161,195)
Weighted average common shares – basic	10,896,996		9,923,338		10,659,076	9,923,338
Options and warrants			455,953
Weighted average common shares – diluted	10,896,996		10,379,291		10,659,076	9,923,338
Earnings (loss) per common share – basic	$ (0.03)		$ 0		$ (0.02)	$ (0.02)
Earnings (loss) per common share – diluted	$ (0.03)		$ 0		$ (0.02)	$ (0.02)

SCHEDULE OF ANTI-DILUTIVE SECUR

SCHEDULE OF ANTI-DILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF DILUTED NET INCOME LOSS (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	1,098,577	1,084,577	1,098,577	168,400
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	94,400	94,400	94,400	94,400
Share-Based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	1,004,177	990,177	1,004,177	74,000

SCHEDULE OF FUTURE PAYMENTS UND

SCHEDULE OF FUTURE PAYMENTS UNDER LEASE AGREEMENT (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
2023	$ 43,770
2024	88,801
2025	75,051
Total future lease payments	207,622
Less: imputed interest	27,472
Present value of future operating lease payments	180,150
Less: current portion of operating lease liabilities	70,183	$ 65,385
Operating lease liabilities, net of current portion	109,967	146,359
Right of use assets	$ 179,366	$ 212,202

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Amortization of right of use asset			$ 32,836	$ 30,169
Payments for Rent	$ 22,570	$ 22,161	$ 45,731	$ 46,836
Operating Lease Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Operating lease agreement expire date			Oct. 31, 2025
Operating cash outflows related to operating lease liabilities	21,560		$ 43,121
Amortization of right of use asset	$ 22,161		$ 44,322
Operating lease, weighted average remaining lease term	2 years 3 months 18 days		2 years 3 months 18 days
Weighted average discount rate	12%		12%