June 24, 2008
Universal to Acquire a 30% Carried Interest in Off-Shore Namibian Oil and Gas Exploration Licence
VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 24, 2008) - Universal Power Corp. (TSX VENTURE:UNX)(FRANKFURT:3U2A) (the "Company") announced today that it has entered into a Letter of Intent ("LOI") to acquire a 30% carried interest in Petroleum Exploration Licence ("EL") 2815 off - shore Namibia. The Company will pay US $1,500,000 for the interest upon completion of due diligence and TSX Venture Exchange ("TSX-V") approval.
Under the terms of the LOI, the Company will purchase from Cumoxi Investments (Proprietary) Limited ("Cumoxi") 30% of the issued and outstanding common shares of Namibia Industrial Development Group (Pty) Ltd, ("NIDG"). NIDG has the oil and gas exploration licence to explore block number 2815 and the off-shore portions of blocks 2816 and 2915 Namibia, dated 22 September 2006 issued to NIDG by the Commissioner for Petroleum Affairs: Ministry of Mines and Energy, Namibia. According to the Shareholders agreement, Cumoxi's 30% interest is carried to production. Cumoxi is a Namibian company controlled by Mr. Knowledge Katti, who is a director of the Company.About Block 2815
EL 2815 covers an area of about 10,858 square kilometers situated directly east of the proven Kudu Gas Field and slightly north of the Orange Basin, offshore Namibia. The block is located along the Namibian border with South Africa where there is a large market for natural gas and the planned development of a natural gas processing plant. The concession was previously owned by Chevron (Namibia) 40%, Shell Namibia 40% and Energy Africa Namibia 20%.
Historical work on block 2815 includes a modern seismic survey over approximately 50% of the block and minimal drilling. The Company plans to evaluate the existing data and to work with the block operator in attracting third parties to participate in drilling.
Pursuant to the terms of the LOI dated June 23, 2008 the Company will acquire from Cumoxi, 30% of all the issued and outstanding securities in the capital of NIDG which currently holds the licence to explore EL 2815. As consideration for the 30% of NIDG, the Company will pay Cumoxi $1,500,000 of which $300,000 has been paid in the form of a refundable deposit.
Other Namibian Assets
The Company also has a 2.7% carried interest in Block 1711 and a 100% working interest in Block 2713A&B through its investment in Kunene Energy (Pty) Ltd. ("Kunene") The Company currently owns 20% of Kunene and has the option to increase that ownership to 90%. The partners on Block 1711 are currently drilling the Kunene well with an initial target depth of 4400 meters.
Universal Power Corp. is an emerging exploration and production junior listed on the TSX Venture Exchange and the FSE Open Market. The Company's mission is to deliver significant share appreciation through the discovery, exploration and production of fossil fuel energy and uranium.
ON BEHALF OF THE BOARD OF DIRECTORS
Barry Swanson, Director & CEO
This news release contains certain forward-looking statements that reflect the current views and/or expectations of Universal Power Corp. with respect to its performance, business and future events. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, those relating to changes in the market, potential downturns in economic conditions, foreign exchange fluctuations, changes in business strategy, regulatory requirements, demand for our resources, competition and dependence on key personnel. These risks, as well as others, could cause actual results and events to vary significantly. Universal Power Corp. does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements.
Shares Outstanding: 54,947,921
(c) 2008 Marketwire. Provided by ProQuest Information and Learning. All rights Reserved.