Universal Provides Update on Kunene # 1 Well, Off-Shore Namibia, Africa
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Aug. 7, 2008) – Universal Power Corp. (TSX VENTURE:UNX) (FRANKFURT:3U2A) (the “Company”) or (“Universal”) announced today they have been notified that the Kunene #1 well, has been drilled to a depth of 5,050 meters and logging operations are complete. During drilling the well encountered significant hydrocarbon shows in two zones. The first interval is 228 meters starting at about 3700 meters and the second interval is 50 meters starting at approximately 4700 meters. Sampling and coring have been completed and analysis is being conducted by Corelab (Aberdeen). Based on log analysis and hydrocarbon shows, Sintezneftegaz Namibia Ltd. (“Sintez”) the operator, has proposed a testing program first over the lower zone, which is scheduled to begin tomorrow, August 8, 2008.
Testing of the prospective lower feature (4698-4748 m) is designed to confirm hydrocarbon makeup and saturation and will allow the partners to assess the commercial viability of the well. The testing is estimated to take approximately 16 days, however, results will not be published until received and approved by Namibian Government due to tight hole status of this well.
Knowledge Katti, director for the Company stated, “We are very pleased that the Kunene # 1 well has significant hydrocarbon shows and we look forward to receiving results from the testing of this well. Sintez, the operator of Block 1711, has significant experience in exploration and production as well as downstream operations and the construction and operation of power generating facilities. They will be a key partner as we move forward in Block 1711. Universal has a 2.7% carried interest in this block meaning the Company does not have to pay for any costs of exploration and has a carried interest to production on the entire PEL Block 1711. This discovery confirms that our business plan is correct and we are acquiring oil and gas interests in a prospective area that we believe could become a significant producer of hydrocarbons.”
On February 26, 2008 Universal entered into a partnership with Kunene Energy (Pty) Ltd (“Kunene Energy”) a Namibian Black Economic Empowerment (“BEE”) company, founded by Mr. Knowledge Katti a local businessman and director of Universal. Kunene Energy is well positioned to assemble strategic interests in high-profile African oil and gas projects. Upon completion of the Kunene Energy acquisition announced last month, the Company will have a 2.7% carried interest in Block 1711 and a 90% working interest in Block 2713A&B. Both concessions are off-shore Namibia, Africa. In addition, the Company has recently signed an LOI to acquire a 30% carried interest in block 2815 located off-shore Namibia, Africa.
The 2713 and 2815 Blocks are located in the Orange Basin, adjacent to the Kudu gas fields with an estimated reservoir of 3 TCF.
The government of Namibia has classified Kunene No. 1 as a “tight hole,” meaning no information regarding the well may be released until such time as the Namibian government determines to make the information public.
About Universal Power Corp.
Universal Power Corp. and its BEE partner are positioned as 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.
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