Universal Holdings Closes Acquisition and Enters Domestic North American Oil and Gas Market

DENVER, Oct. 5 /PRNewswire-FirstCall/ – Universal Holdings (OTCBB: UVHO) announced today that on September 21, 2009, the company purchased 100% of the outstanding membership units of Coronado Acquisitions, LLC. In connection with this acquisition, Universal has satisfied a promissory note issued by Coronado Acquisitions, LLC in the principal amount of $3,250,000 by issuing 2,100,000 restricted shares of its common stock to the Noteholders. Coronado is a development stage independent energy company engaged in the services sector of the oil and gas industry through its ownership and operation of medium depth oil drilling rigs.

Through the acquisition of Coronado Acquisitions, LLC, UVHO acquired debt-free ownership of two drilling rigs consisting of a Spencer Harris 5000 Rig and a Cardwell Rig, both capable of medium depth drilling to approximately 6,500 feet. The business plan is to continuously deploy the rigs in the field to generate daily lease revenue from third parties. UVHO intends to acquire oil and gas properties and use these two drilling rigs for our own properties, when the rigs are not in use on third party properties.

Universal will focus on applying technology and services to increase the incremental recovery factor of certain mature oil basins within the United States. Over the past fifteen years the energy industry has been one of the largest users of computing power and has essentially become a technology driven industry, where most unsuccessful or dry-holes are now drilled on computer screens versus in the field. The impact of technology has not only improved the economics of drilling but it has dramatically impacted the recovery factor of existing oil in place. The Company is trying to position itself to take advantage of the improved technology.

As a condition of the Transaction, the current officers and directors of the Company resigned effective immediately and Jeffrey Beunier was appointed as President, Chief Executive Officer, Chief Financial Officer and Chairman. Mr. Beunier is the founder and principal of Open Choke Capital Management, LLC which advises publicly traded energy sector companies on behalf of hedge fund clients, and he has been responsible for sourcing, underwriting, and managing investment opportunities in the commercial, industrial and energy sectors. Since 2001, he has been a licensed Certified Public Accountant (CPA).

“The decline in oil prices in the 1980′s created a trend of the major oil companies to underemphasize and under-invest in the United States oil properties into more lucrative international oil development opportunities. We believe this void has resulted in opportunities to acquire underdeveloped and neglected fields that are economic in today’s higher oil price environment,” said Jeffery Beunier, Chairman and CEO. “We plan to utilize our service platform, consisting of our rigs and related equipment and our know-how, to identify, acquire and enhance properties that provide either down-hole improvements, additional behind-pipe zones or down spacing opportunities.”

About Universal Holdings

UVHO has ceased its previous operations and changed its business plan to be consistent with Coronado’s business as an independent energy company engaging in the development, production and marketing of oil and gas in North America. Universal will seek opportunities where it can deploy its drilling/service rig fleet to assist in the participation in and maximization of various opportunities focusing on drill-to-earn partnerships. Universal will focus on applying technology and services to increase the incremental recovery factor of certain mature oil basins within the United States. The company is based in Denver, Colorado.

Forward Looking Statements:

Under The Private Securities Litigation Reform Act of 1995: The statements in the press release that relate to the Company’s expectations with regard to the future impact on the Company’s results from new products and operations in development are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties. Words such as “expects”, “intends”, “plans”, “may”, “could”, “should”, “anticipates”, “likely”, “believes” and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Readers are urged not to place undue reliance on the forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release. Additional information on risks and other factors that may affect the business and financial results of the Company can be found in the filings of Universal Holdings, Inc. with the U.S. Securities and Exchange Commission.

CONTACT: EQUITIES Global Communications, Inc., Robert Willison, Investor Relations, (678) 644-3383, rwillison@equitiesmagazine.com

SOURCE Universal Holdings