UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549


                                  FORM 10-QSB/A
                                 Amendment No. 1

(Mark One)

[X]  QUARTERLY  REPORT  UNDER SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE
     ACT  OF  1934

     For the quarterly period ended June 30, 2005

                                       OR

[ ]  TRANSITION  REPORT  PURSUANT  TO  SECTION  13 OR  15(d)  OF  THE SECURITIES
     EXCHANGE  ACT  OF  1934

          For the transition period from ___________ to ______________.

                         Commission File Number 0-33027.

                          HOUSTON AMERICAN ENERGY CORP.
        (Exact name of small business issuer as specified in its charter)

              Delaware                                     76-0675953
   (State or other jurisdiction of                       (IRS Employer
    incorporation or organization)                    Identification No.)

               801 Travis Street, Suite 2020, Houston, Texas 77002
               (Address of principal executive offices)(Zip Code)

                                 (713) 222-6966
              (Registrant's telephone number, including area code)


     (Former name, former address and former fiscal year, if changed since last
                                     report)

     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.     Yes [X] No [ ]

     As of August 10, 2005, we had 19,968,089 shares of $.0001 par value Common
Stock outstanding.

     Transitional Small Business Disclosure Format (check one)  Yes [ ]  No [X]




                                 EXPLANTORY NOTE

This Amendment No. 1 on Form 10-QSB/A hereby amends Part I, Item 3. Controls and
Procedures of Houston American Energy Corp's Quarterly Report on Form 10-QSB for
the quarter ended June 30, 2005, which was filed on August 12, 2005. This
Amendment No. 1 is being filed for the purpose of providing additional details
to our disclosures in the original report pursuant to comments we received from
the Staff of the U.S. Securities and Exchange Commission. This Amendment No. 1
is not intended to revise other information presented in our quarterly report on
Form 10-QSB for the quarter ended June 30, 2005 as originally filed and all
such other information in the original filing, which remains unchanged.

This Amendment No. 1 on Form 10-QSB/A does not reflect events occurring after
the filing of the original Form 10-QSB and does not modify or update the
disclosure therein in any way other than as required to reflect the amendments
discussed above.



                          HOUSTON AMERICAN ENERGY CORP.
                          -----------------------------

                                  FORM 10-QSB/A

                                      INDEX

                                                                            Page No.
                                                                            --------
                                                                         
PART I.    FINANCIAL INFORMATION

     Item 1.  Financial Statements (Unaudited)

        Balance Sheet as of June 30, 2005. . . . . . . . . . . . . . . . . .       3

        Statements of Operations for the three months and six months
         ended June 30, 2005 and June 30, 2004 . . . . . . . . . . . . . . .       4

        Statements of Cash Flows for the six months
         ended June 30, 2005 and June 30, 2004 . . . . . . . . . . . . . . .       5

        Notes to Financial Statements. . . . . . . . . . . . . . . . . . . .       6

     Item 2.  Management's Discussion and Analysis of
              Financial Condition and Results of Operations. . . . . . . . .       8

     Item 3.  Controls and Procedures. . . . . . . . . . . . . . . . . . . .      12

PART II.   OTHER INFORMATION

     Item 6.  Exhibits . . . . . . . . . . . . . . . . . . . . . . . . . . .      13



                                        2



                         PART I - FINANCIAL INFORMATION
ITEM 1.     Financial Statements

                          HOUSTON AMERICAN ENERGY CORP.
                                  BALANCE SHEET
                                  June 30, 2005
                                   (Unaudited)


                               ASSETS
                               ------
                                                  
CURRENT ASSETS:
  Cash                                               $ 1,929,671 
  Accounts receivable                                    402,271 
  Prepaid expenses                                        65,978 
                                                     ------------
        Total current assets                           2,397,920 
                                                     ------------

PROPERTY, PLANT AND EQUIPMENT
  Oil and gas properties - full cost method
    Costs subject to amortization                      2,842,709 
    Costs not being amortized                            511,763 
  Furniture and equipment                                 10,878 
                                                     ------------
        Total property, plant and equipment            3,365,350 
  Accumulated depreciation and depletion              (1,179,713)
                                                     ------------
        Total property, plant and equipment, net       2,185,637 
                                                     ------------

OTHER ASSETS                                             225,913 
                                                     ------------
        Total Assets                                 $ 4,809,470 
                                                     ============

              LIABILITIES AND SHAREHOLDERS' EQUITY
              ------------------------------------

CURRENT LIABILITIES:
  Accounts payable and accrued liabilities           $   282,261 
                                                     ------------
        Total current liabilities                        282,261 
                                                     ------------

LONG-TERM DEBT:
  Notes payable to principal shareholder               1,000,000 
  Subordinated convertible notes                       2,125,000 
  Reserve for plugging costs                              44,456 
                                                     ------------
        Total long-term liabilities                    3,169,456 
                                                     ------------

SHAREHOLDERS' EQUITY:
  Common stock, $.001 par value; 100,000,000 shares
    Authorized; 19,968,089 shares outstanding             19,968 
  Additional paid-in capital                           2,962,589 
  Treasury stock, at cost; 100,000 shares                (85,834)
  Accumulated deficit                                 (1,538,970)
                                                     ------------
        Total shareholders' equity                     1,357,753 
                                                     ------------
        Total liabilities and shareholders' equity   $ 4,809,470 
                                                     ============


    The accompanying notes are an integral part of these financial statements


                                        3



                             HOUSTON AMERICAN ENERGY CORP.
                               STATEMENTS OF OPERATIONS
                                     (Unaudited)

                                      Six Months Ended          Three Months Ended
                                          June 30,                   June 30,
                                  -------------------------  -------------------------
                                     2005          2004         2005          2004
                                  -----------  ------------  -----------  ------------
                                                              
Revenue:
    Oil and gas                   $ 1,091,940  $   303,548   $   646,429  $   166,561 
    Interest                            7,770        4,302         5,566        1,537 
                                  -----------  ------------  -----------  ------------
Total revenue                       1,099,710      307,850       651,995      168,098 
                                  -----------  ------------  -----------  ------------

Expenses of operations:
    Lease operating expense and
      severance tax                   470,975      119,497       288,876       51,676 
    Joint venture expenses             27,424        6,048        13,601        6,048 
General and administrative
  Expense:
    Professional fees                 192,772       56,178        96,857       35,860 
    Salary and taxes                   97,184            -        48,442            - 
    Rent                               21,163       19,761        10,919        9,389 
    Shareholder relations               4,594       21,980         3,390       19,537 
    Travel and meals                    5,758        9,570         4,888        6,840 
    Registration fees                   1,994        3,238         1,800          825 
    Telephone and fax                   3,703        2,494         1,777        1,245 
    Dues and subscription               4,475        5,702         2,981        1,684 
    Financing costs                     9,201            -         9,201            - 
    Miscellaneous                       8,405        8,357           897        6,144 
Depreciation and depletion            170,358       57,493       107,731       34,687 
Interest expense                       64,624       31,600        46,624       13,600 
                                  -----------  ------------  -----------  ------------

Total expenses                      1,082,630      341,918       637,984      187,535 
                                  -----------  ------------  -----------  ------------

Net income (loss)                 $    17,080  $   (34,068)  $    14,011  $   (19,437)
                                  ===========  ============  ===========  ============

Basic and diluted income (loss)
per share                         $      0.00  $     (0.00)  $      0.00  $     (0.00)
                                  ===========  ============  ===========  ============

Basic and diluted weighted
  average shares                   19,968,089   19,536,060    19,968,089   19,565,279 
                                  ===========  ============  ===========  ============

    The accompanying notes are an integral part of these financial statements


                                        4



                               HOUSTON AMERICAN ENERGY CORP.
                                  STATEMENTS OF CASH FLOWS
                                        (Unaudited)

                                                         For the Six Months Ended June 30,
                                                       ------------------------------------
                                                             2005               2004
                                                       -----------------  -----------------
                                                                    
CASH FLOWS FROM OPERATING ACTIVITIES
  Income (loss) from operations                        $         17,080   $        (34,068)
Adjustments to reconcile net loss
  to net cash from operations
    Depreciation and depletion                                  168,858             55,993 
    Non-cash expenses                                             6,656             18,666 
Changes in operating assets and liabilities:
    (Increase) in accounts receivable                          (162,130)           (67,043)
    (Increase) decrease in prepaid expense                       56,536            (98,502)
    (Increase) decrease in other assets                         (97,907)            36,863 
    Increase in accounts payable and accrued expenses            41,904             33,265 
                                                       -----------------  -----------------

Net cash provided (used) by operations                           30,997            (54,826)
                                                       -----------------  -----------------

CASH FLOWS FROM INVESTING ACTIVITIES
  Acquisition of oil and gas properties                        (947,939)          (441,778)
                                                       -----------------  -----------------

Net cash used by investing activities                          (947,939)          (441,778)
                                                       -----------------  -----------------

CASH FLOWS FROM FINANCING ACTIVITIES

  Sale of common stock                                                -             91,193 
  Issuance of debt                                            2,125,000                  - 
                                                       -----------------  -----------------

Net cash provided by financing activities                     2,125,000             91,193 
                                                       -----------------  -----------------

Increase (decrease) in cash and equivalents                   1,208,058           (405,411)
Cash, beginning of period                                       721,613            663,422 
                                                       -----------------  -----------------
Cash, end of period                                    $      1,929,671   $        258,011 
                                                       =================  =================

SUPPLEMENT CASH FLOW INFORMATION:
  Interest paid                                        $         36,000   $         36,000 
                                                       =================  =================

SUPPLEMENT NON-CASH INVESTING AND
  FINANCING ACTIVITIES
    Non-cash expense                                              6,656             18,666 
    Stock issued for oil and gas activity                             -             47,500 
    Stock issued for financial public relations                       -            103,000 
    Warrants issued for financing costs                         162,562                  - 


    The accompanying notes are an integral part of these financial statements


                                        5

                          HOUSTON AMERICAN ENERGY CORP.
                          Notes to Financial Statements
                                  June 30, 2005
                                   (Unaudited)

NOTE 1. - BASIS OF PRESENTATION

The accompanying unaudited 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-QSB and
Item 310(b) of Regulation S-B. 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 financial statements. Operating results for the periods
presented are not necessarily indicative of the results that may be expected for
the full year.

These financial statements should be read in conjunction with the financial
statements and footnotes, which are included as part of the Company's Form
10-KSB for the year ended December 31, 2004.

NOTE 2. - CHANGES IN PRESENTATION

Certain financial presentations for the periods presented for 2004 have been
reclassified to conform to the 2005 presentation.

NOTE 3. - SUBORDINATED CONVERTIBLE NOTES

On May 4, 2005, the Company entered into Purchase Agreements (the "Purchase
Agreements") with multiple investors pursuant to which the Company sold
$2,125,000 of 8% Subordinated Convertible Notes Due 2010 (the "Notes").

The Notes bear interest at 8%, provide for semi-annual interest payments and
mature May 1, 2010. The Notes are convertible, at the option of the holders,
into common stock of the Company at a price of $1.00 per share (the "Conversion
Price"), subject to standard anti-dilution provisions relating to splits,
reverse splits and other transactions, including issuances of common stock at
prices below the Conversion Price. The Notes are subject to automatic conversion
in the event the Company conducts an underwritten public offering of its common
stock from which the Company receives at least $5 million and the public
offering price is at least 150% of the then applicable Conversion Price. The
Company has the right to cause the Notes to be converted into common stock after
May 1, 2006 if the price of the Company's common stock exceeds 200% of the then
applicable Conversion Price on the date of conversion and for at least 20
trading days over the preceding 30 trading days. The Company has the right to
repurchase the Notes after May 1, 2007 at 103% of the face amount during 2007,
102% of the face amount during 2008, 101% of the face amount during 2009 and
100% of the face amount thereafter. The Notes are unsecured general obligations
of the Company and are subordinated to all other indebtedness of the Company
unless the other indebtedness is expressly made subordinate to the Notes.

The Notes were offered and sold in private placement transaction pursuant to the
exemption from registration provided by Section 4(2) of the Securities Act of
1933 and Rule 506 promulgated thereunder. Each of the investors is either an
"accredited investor", as defined in Rule 501 promulgated under the Securities
Act, or a "qualified institutional buyer", as defined in Rule 144A promulgated
under the Securities Act.


                                        6

Pursuant to the terms of the Purchase Agreements, the Company and the investors
entered into Registration Rights Agreements under which the Company agreed to
file with the Securities and Exchange Commission, within 90 days, a registration
statement covering the Notes and the common stock underlying the Notes and to
use its best efforts to cause the registration statement to become effective
within 180 days.

In connection with the placement of the Notes, the Company issued to the
placement agent in the offering a three year warrant (the "Placement Agent
Warrant") to purchase 191,250 shares of the Company's common stock at $1.00 per
share and paid commissions totaling $127,500. The Registration Rights Agreements
provide that the shares of common stock underlying the Placement Agent Warrant
are to be included in the registration statement required to be filed.

NOTE 4. - WARRANTS

Activity of warrants during the three months ended June 30, 2005 is as follows:



                                                                  Weighted
                                                                  Average
                                                    Warrants    Share Price
                                                   -----------  ------------
                                                          
               Outstanding at beginning of period            -             -
               Granted                                 191,250  $       1.00
                                                   -----------  ------------
               Outstanding at end of period            191,250  $       1.00
                                                   ===========  ============



Warrants outstanding and exercisable as of June 30, 2005:



                    Exercise  Number of  Remaining  Number of
                     Price     Shares      Life      Shares
                    --------  ---------  ---------  ---------
                                           

                     $1.00      191,250       2.83    191,250
                    ========  =========  =========  =========


NOTE 5. - FINANCING COSTS

In conjunction with the issuance of long-term debt described in Note 3 above,
the Company paid $127,500 in commissions and issued a warrant to the placement
agent to purchase 191,250 shares of the Company's common stock at an exercise
price of $1.00 per share expiring May 3, 2008. The market price on the date the
warrants were granted was $0.85. The warrants were valued on the date of grant
using the Black-Scholes pricing model at $162,562 using a risk free interest
rate of 3.65%, a volatility factor of 412% and an expected life of 3 years.

The aggregate financing costs of $290,062, comprised of commissions and the
value of the warrant, are being expensed ratably over the life of the Notes as
financing costs. $9,201 of financing costs were expensed during the quarter
ended June 30, 2005. $58,115 of the financing costs are classified as prepaid
expense and $222,746 of the financing costs are deferred financing costs
classified as other assets on the balance sheet.


                                        7

ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS

FORWARD-LOOKING INFORMATION

This Form 10-QSB quarterly report of Houston American Energy Corp. (the
"Company") for the six months ended June 30, 2005, contains certain
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended, which are intended to be covered by the safe harbors created
thereby. To the extent that there are statements that are not recitations of
historical fact, such statements constitute forward-looking statements that, by
definition, involve risks and uncertainties. In any forward-looking statement,
where the Company expresses an expectation or belief as to future results or
events, such expectation or belief is expressed in good faith and believed to
have a reasonable basis, but there can be no assurance that the statement of
expectation or belief will be achieved or accomplished.

The following are factors that could cause actual results or events to differ
materially from those anticipated, and include, but are not limited to: general
economic, financial and business conditions; the Company's ability to minimize
expenses and exposures related to its oil and gas properties in which other
companies have control over the operations conducted on such properties; changes
in and compliance with governmental laws and regulations, including various
state and federal environmental regulations; the Company's current dependency on
John F. Terwilliger, its sole director and executive officer; and the Company's
ability to obtain additional necessary financing from outside investors and/or
bank and mezzanine lenders.

Readers are cautioned not to place undue reliance on the forward-looking
statements contained herein, which speak only as of the date hereof. The Company
believes the information contained in this Form 10-QSB to be accurate as of the
date hereof. Changes may occur after that date, and the Company will not update
that information except as required by law in the normal course of its public
disclosure practices.

The oil and gas industry is subject to volatile price movements based on various
factors including supply and demand and other factors beyond the control of the
Company. While the industry has generally benefited from higher prices during
the past two years, sudden and/or sustained decreases in energy prices can
occur, which could limit our ability to fund planned levels of capital
expenditures.

Additionally, the following discussion regarding the Company's financial
condition and results of operations should be read in conjunction with the
financial statements and related notes contained in Item 1 of Part 1 of this
Form 10-QSB, as well as the financial statements in Item 7 of Part II of the
Company's Form 10-KSB for the fiscal year ended December 31, 2004.

CRITICAL ACCOUNTING POLICIES

The Company's discussion and analysis of its financial condition and results of
operations are based upon the Company's financial statements, which have been
prepared in accordance with accounting principles generally accepted in the
United States of America. The Company believes certain critical accounting
policies affect its more significant judgments and estimates used in the
preparation of its financial statements. A description of the Company's critical
accounting policies is set forth in the Company's Form 10-KSB for the year ended
December 31, 2004. As of, and for the quarter ended, June 30, 2005, there have
been no material changes or updates to the Company's critical accounting
policies other than the following updated information relating to Unevaluated
Oil and Gas Properties:

     UNEVALUATED OIL AND GAS PROPERTIES. Unevaluated oil and gas properties not
subject to amortization include the following at June 30, 2005:


                                        8



                                   
                    Acquistion costs  $   59,269
                    Evalution costs      452,494
                                      ----------
                        Total         $  511,763
                                      ==========


The carrying value of unevaluated oil and gas prospects include $439,333
expended for properties in the South American country of Colombia at June 30,
2005. We are maintaining our interest in these properties and development has or
is anticipated to commence within the next twelve months.

CURRENT YEAR DEVELOPMENTS

Through August 10, 2005, the Company has drilled two on-shore domestic wells as
follows:

-    Drilling of a 10,600-foot well, the first well, on the South Sibley
     Prospect in Webster Parish, Louisiana was completed in May 2005 with
     multiple pay sands apparently identified. Sales from the well commenced
     June 28, 2005. The Company has a 7.5% working interest at an 8.3% net
     revenue interest carried to point of sales for the well.

-    Drilling of a 12,100-foot well, the Baronet #2 well, on the Crowley
     Prospect in Acadia Parish, Louisiana was completed in April 2005. The well
     tested the Hayes Sand and flanks a natural gas well that produced 1.6 BCF
     of natural gas from the Hayes Sand. After logging 21-feet of apparent net
     pay, hole conditions deteriorated before logging could be completed. The
     well was completed and production began in June 2005. The Company has a 3%
     working interest and 2.25% net revenue interest until payout for the well.

Assuming the Baronet #2 performs consistently, the Company plans to drill a
developmental well on the Crowley Prospect during the fourth quarter of 2005.

Through August 10, 2005, the Company has drilled six international wells in
Colombia as follows:

-    Drilling of 5 offset wells on the Cara Cara concession in Colombia was
     completed with production commencing on the Bengala #4, #5, #6 and #7 and
     the Jaguar #5 in the first and second quarters of 2005. The Company holds a
     1.59% working interest in each of the wells subject to a 30% reversionary
     interest to Ecopetrol at payout.

-    The Tambaqui #5 well commenced drilling, and production, in March 2005. The
     Company holds a 12.6% working interest in the well.

Seismic surveying began on our Cara Cara concession in Colombia as part of our
planned delineation of additional drilling prospects on the concession. Seismic
surveying was completed on our Dorotea and Cabiona concessions to establish
drilling prospect locations.

The Company and its partners plan to drill up to 5 additional wells on the Cara
Cara concession through the end of 2005.

The Company and its partners are permitting 30 drilling locations on the Dorotea
and Cabiona concessions. The Company and its partners plan to add a second rig
to begin drilling as soon as permits are obtained and locations are built.


                                        9

RESULTS OF OPERATIONS

Oil and Gas Revenues. Total oil and gas revenues increased 260% to $1,091,940 in
the six months ended June 30, 2005 when compared to the six months ended June
30, 2004. The increase in revenue is due to (1) increased production resulting
from the development of the Columbian fields and the new domestic wells that
have come on line during the second half of 2004 and the first half of 2005, and
(2) increases in oil prices. The Company had interests in 13 producing wells in
Colombia and 7 producing wells in the U.S. during the 2005 period as compared to
4 producing wells in Columbia and 5 producing wells in the U.S. during the 2004
period. Average prices from sales were $38.22 per barrel of oil and $5.93 per
mcf of gas during the 2005 period as compared to $28.43 per barrel of oil and
$5.10 per mcf of gas during the 2004 period. Following is a summary comparison,
by region, of oil and gas sales for the periods.



                                Columbia     U.S.     Total
                                ---------  --------  --------
                                            
               2005 Period
                   Oil sales    $ 844,210  $ 42,640  $886,850
                   Gas sales            -   205,090   205,090
               2004 Period
                   Oil sales      149,358     8,067   157,425
                   Gas sales            -   146,123   146,123


Lease Operating Expenses. Lease operating and severance tax expenses, excluding
joint venture expenses relating to our Columbian operations discussed below,
increased 294% to $470,975 in the 2005 period from $119,497 in the 2004 period.
The increase in lease operating expenses was attributable to the increase in the
number of wells operated during the 2005 period (20 wells as compared to 10
wells). Following is a summary comparison of lease operating expenses for the
periods.



                                 Columbia    U.S.     Total
                                ---------  --------  --------
                                            
               2005 Period      $ 450,737  $ 20,238  $470,975
               2004 Period         98,084    21,413   119,497


Joint Venture Expenses. The Company's allocable share of joint venture expenses
attributable to the Colombian Joint Venture totaled $27,424 during the 2005
period and $6,048 during the 2004 period. The increase in joint venture expenses
was attributable to an increase in operational activities of the joint venture
in acquiring new concessions.

Depreciation and Depletion Expense. Depreciation and depletion expense was
$170,358 and $57,493 for the periods ended June 30, 2005 and 2004, respectively.
The increase is due to increases in domestic and Colombian production.

Interest Expense. Interest expense was $64,624 in the 2005 period and $31,600 in
the 2004 period. The increase in interest expense was attributable to the
issuance, in May 2005, of $2,125,000 of Subordinated Convertible Notes.

General and Administrative Expenses. General and administrative expense
increased by 174% to $349,249 during the 2005 period from $127,280 in the 2004
period. The increase in general and administrative expense was primarily
attributable to the payment of salary (up $97,184 from $0) to the Company's
principal officer beginning in the fourth quarter of 2004 and increases in
professional fees (up $136,594, or 243%) relating primarily to legal fees
associated with the ongoing Moose Oil litigation.


                                       10

FINANCIAL CONDITION

Liquidity and Capital Resources. At June 30, 2005 we had a cash balance of
$1,929,671 and working capital of $2,115,659 compared to a cash balance of
$721,613 and working capital of $771,392 at December 31, 2004. The increase in
cash and working capital during the period was primarily attributable to the
sale, during 2005, of $2,125,000 of Subordinated Convertible Notes partially
offset by investing activities relating to oil and gas properties.

Operating cash flows for the 2005 period totaled $30,997 as compared to cash
used in operations during the 2004 period of $54,826. The improvement in
operating cash flow was primarily attributable to improved profitability and
increases in depreciation and depletion, partially offset by changes in
operating assets and liabilities.

Investing activities used $947,939 during the 2005 period as compared to
$441,778 used during the 2004 period. The increase in funds used in investing
activities during the current period was primarily attributable to the payment
of the Company's portion of seismic survey costs on Colombian prospects totaling
$447,605.

Financing activities provided $2,125,000 during the 2005 period attributable to
the sale of Subordinated Convertible Notes and $91,193 during the 2004 period
attributable to the issue of common stock.

Notes Payable. At June 30, 2005, our long-term debt was $3,169,456 as compared
to $1,000,000 at December 31, 2004. The increase in long-term debt was
attributable to the issuance during the period of $2,125,000 of Subordinated
Convertible Notes and recording a reserve for plugging costs of $44,456.

Notes payable at June 30, 2005 included loans from our principal shareholder, in
the amount of $1,000,000, bearing interest at 7.2% and maturing January 1, 2007.

Notes payable also included $2,125,000 in principal amount of Convertible Notes.
The Convertible Notes bear interest at 8%, provide for semi-annual interest
payments and mature May 1, 2010. The Convertible Notes are convertible, at the
option of the holders, into common stock of the Company at a price of $1.00 per
share (the "Conversion Price"), subject to standard anti-dilution provisions
relating to splits, reverse splits and other transactions, including issuances
of common stock at prices below the Conversion Price. The Convertible Notes are
subject to automatic conversion in the event the Company conducts an
underwritten public offering of its common stock from which the Company receives
at least $5 million and the public offering price is at least 150% of the then
applicable Conversion Price. The Company has the right to cause the Convertible
Notes to be converted into common stock after May 1, 2006 if the price of the
Company's common stock exceeds 200% of the then applicable Conversion Price on
the date of conversion and for at least 20 trading days over the preceding 30
trading days. The Company has the right to repurchase the Convertible Notes
after May 1, 2007 at 103% of the face amount during 2007, 102% of the face
amount during 2008, 101% of the face amount during 2009 and 100% of the face
amount thereafter. The Convertible Notes are unsecured general obligations of
the Company and are subordinated to all other indebtedness of the Company unless
the other indebtedness is expressly made subordinate to the Convertible Notes.

Capital and Exploration Expenditures and Commitments. Our principal capital and
exploration expenditures relate to our ongoing efforts to acquire, drill and
complete prospects. Historically, we funded our capital and exploration
expenditures from funds borrowed from John F. Terwilliger, our principal
shareholder and officer. With the receipt of additional equity financing in
2003, 2004 and the May 2005 sale of convertible notes, and the increase in our
revenues, profitability and operating cash flows, we expect that future capital
and exploration expenditures will be funded principally through funds on hand
and funds generated from operations.


                                       11

During the first half of 2005, we invested approximately $947,939 for the
acquisition and development of oil and gas properties, consisting of (1) seismic
surveying in Colombia ($447,605), (2) drilling the well on the Crowley Prospect,
and (3) drilling 6 wells in Colombia.

At June 30, 2005, our only material contractual obligations requiring
determinable future payments on our part were notes payable to our principal
shareholder and holders of subordinated convertible notes and our lease relating
to our executive offices.

In addition to the contractual obligations requiring that we make fixed
payments, in conjunction with our efforts to secure oil and gas prospects,
financing and services, we have, from time to time, granted overriding royalty
interests (ORRI) in various properties, and may grant ORRIs in the future,
pursuant to which we will be obligated to pay a portion of our interest in
revenues from various prospects to third parties.

At June 30, 2005, our acquisition and drilling budget for the balance of 2005
totaled approximately $427,500, consisting of (1) $120,000 for drilling of 5
wells in South America on the Cara Cara concession, (2) $187,500 to drill one
additional concession acquired in South America in 2004 and (3) $120,000 to
drill an additional well on the Crowley Prospect. Our acquisition and drilling
budget has historically been subject to substantial fluctuation over the course
of a year based upon successes and failures in drilling and completion of
prospects and the identification of additional prospects during the course of a
year.

Management anticipates that our current financial resources combined with our
increases in revenues over the past year will meet our anticipated objectives
and business operations, including our planned property acquisitions and
drilling activities, for at least the next 12 months without the need for
additional capital. Management continues to evaluate producing property
acquisitions as well as a number of drilling prospects. It is possible, although
not anticipated, that the Company may require and seek additional financing if
additional drilling prospects are pursued beyond those presently under
consideration.

OFF-BALANCE SHEET ARRANGEMENTS

We had no off-balance sheet arrangements or guarantees of third party
obligations at June 30, 2005.

INFLATION

We believe that inflation has not had a significant impact on our operations
since inception.

ITEM 3.     CONTROLS AND PROCEDURES


As of the end of the period covered by this report, we have evaluated the
effectiveness of the design and operation of our disclosure controls and
procedures under the supervision and with the participation of our chief
executive officer ("CEO") who also serves as chief financial officer. Based on
this evaluation, our management, including the CEO, concluded that our
disclosure controls and procedures were effective.

In connection with the audit of our financial statements for the fiscal year
ended December 31, 2004, our independent registered public accounting firm
informed us that we have significant deficiencies constituting material
weaknesses as defined by the standards of the Public Company Accounting
Oversight Board.


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The weaknesses in question were detected during the audit of the company's
financial statements for the fiscal year ended December 31, 2004, which audit
occurred in February/March 2005.

The weaknesses were detected in the routine course of the audit review of
accounting for certain non-routine transactions.

The specific problems identified by the auditor to the company were (1) the lack
of segregation of duties necessary to maintain proper checks and balances
between functions and (2) the failure of internal personnel to adequately
communicate the scope and nature of non-routine transactions.  The absence of
qualified full time accounting personnel in the company was a contributing
factor to the problems identified by the auditor.  The specific circumstances
giving rise to the weaknesses include the company's President serving as both
Chief Executive Officer and as Chief Financial Officer and the company's
utilizing the services of contract accountants on a part time basis in the
absence of internal accounting personnel.  As a result of the absence of full
time in-house accounting personnel and the failure of in-house personnel to
adequately communicate information to the company's outside contract
accountants, certain journal entries were not made until the time of the audit
when the need for such entries was identified by the auditor.

Because the company lacks the financial resources to support in-house accounting
personnel at this time, no formal steps have as yet been taken to resolve the
weaknesses identified by the auditor.  The company is, however, emphasizing
improvement in its communications with its outside accounting personnel to
assure that non-routine transactions are accounted for in a timely manner.

Management concluded that the company's disclosure controls and procedures were
effective because the relevant information and data in question were known to
proper members of management to allow proper and timely disclosure in its
reports filed with the SEC and was, in fact, timely reported.  The weaknesses in
question relate to internal control over financial reporting and not weaknesses
in disclosure controls and procedures.

During the quarter ended June 30, 2005, there were no changes in our internal
controls over financial reporting that materially affected, or are reasonably
likely to materially affect, internal controls over financial reporting.


                                     PART II

ITEM 6.     EXHIBITS

            Exhibit
            Number          Description
            ------          -----------

            31.1         Certification of CEO and CFO pursuant to Section 302 of
                         the Sarbanes-Oxley Act of 2002

            32.1         Certification Pursuant to 18 U.S.C. Section 1350, as
                         Adopted Pursuant to Section 906 of the Sarbanes-Oxley
                         Act of 2002

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on behalf by the undersigned
thereunto duly authorized.

                                                   HOUSTON AMERICAN ENERGY CORP.


                                                   By: /s/ John Terwilliger
                                                       John Terwilliger
                                                       CEO and President



Date: November 4, 2005


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