San Diego, March 2, 2012 (Shareholders Foundation) -- An investigation on behalf of investors in shares of Houston American Energy Corporation (NYSEAMEX:HUSA) over potential securities laws violations by certain officers and directors at Houston American Energy Corp. was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Houston American Energy Corporation (NYSEAMEX:HUSA) concerning whether the company, certain of its officers and directors, or others have possibly violated federal securities laws. Specifically, the investigation concerns whether certain statements about Houston American Energys business, its prospects and its operations were potentially materially false and misleading at the time they were made.

Houston American Energy Corporation reported that its annual Revenue rose from $4.98million in 2007 to $19.51million in 2010 and that its Net Income surged from $0.49million in 2007 to $21.03million in 2010.

However, Houston American Energy Corporation reported that its third quarter Revenue in 2011 fell from $5.35million in 2010 to $0.32million in 2011 and its third quarter Net Income of $1.17million in 2010 turned into a third quarter Net Loss of $1.09million in 2011.

Shares of Houston American Energy Corporation (AMEX:HUSA) rose from as low as $1.74 in May 2009 to as high as $19.62 per share in March 2010 and dropped in the second half of 2010 to $8.95 in September, before closing 2010 at $18.09 per share.

In 2011 AMEX:HUSA shares reached in July over $20 per share and closed 2011 at slightly above $12 per share.

Then on March 1, 2012, Houston American Energy Corporation disclosed an update on drilling operations.

Shares of Houston American Energy Corporation (AMEX:HUSA) fell about 40% from $11.20 to as low as $6.71 per share during March 1, 2012 and closed at $7 per share.