Universal Power Corp.
TSX VENTURE : UNX
FRANKFURT : 3U2A

Universal Power Corp.

July 07, 2009 16:01 ET

Universal Partners With HRT Petroleum and Arranges Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 7, 2009) - Universal Power Corp. (TSX VENTURE:UNX) (FRANKFURT:3U2A) (the "Company") or ("Universal") is pleased to announce that it has retained HRT Petroleum of Brazil ("HRT") to conduct technical analysis on two of Universal's blocks offshore Namibia.

Under the agreement, HRT will collect and analyze all existing and historical data for Blocks 2713A and 2815 and will source potential farm in partners. Block 2713A is owned by Universal's 90% controlled subsidiary Kunene Energy (Pty) Ltd. Universal currently has a 30% carried interest in Block 2815 through Cumoxi Investments (Pty) Ltd., a 100% owned subsidiary.

Block 2713A is located next to Block 2714A owned by Enigma Oil & Gas (Pty) Ltd. In May of 2009, Petroleo Brasileiro S.A. ("Petrobras"), signed a Farm-in agreement for a 50% interest in Block 2714A. The terms were US $16 million cash plus reimbursement of past costs including 3D seismic. The technical work and data room for this project was managed by HRT.

Barry Swanson, Chief Executive Officer of the Company stated "This association with HRT Petroleum represents yet another milestone in the development of our Company. HRT works with the largest and most advanced off-shore oil and gas companies in the world. We are privileged that they have chosen to work with Universal in Namibia. This is a tremendous opportunity and I expect the beginning of a very successful partnership. In addition, the fact that Petrobras is active in our area is confirmation of our business thesis".

Dr. Marcio Rocha Mello, President of HRT stated "After having worked extensively in Namibia for the last three years, it is an honor for HRT to have this association with Universal where HRT intends to apply its unique proprietary petroleum system technology in order to understand and quantify all the elements and processes of the petroleum system that are essential to identify and characterize the hydrocarbon potential in the Universal exploratory Blocks 2713A and 2815, offshore Namibia. The special location of both blocks closely associated with the Kudu field and directly related to two very important oil and gas hydrocarbon kitchens, located in the South and Western portions of the basin, gives the area a very special geological situation regarding the charge of oil and gas over the structures already envisaged. Based on the current and historical data already analyzed, I am very confident about the oil and gas potential on these blocks."

Terms of Agreement

There are two components to the agreement. Under part one of the agreement, HRT will provide a technical and economic data package for Blocks 2713A and 2815. This will include, among others, oil slick satellite identification, seismic reprocessing and interpretation, 3D compositional petroleum system modeling, kudu condensate high resolution geochemistry characterization, reservoir geology (e.g. petrology and bioestratigraphy) and geochemistry using selected rock samples from already drilled adjacent wells, leads and prospect identification, definition and quantification of prospective resources, risk evaluation and predictive analysis of oil and gas quality. The price of this agreement is US $2,728,750 plus taxes and will be paid in cash with a US $300,000 deposit on signing. Under part two of the agreement, HRT will provide a data room at its office in Rio de Janeiro, following the work under part one of the agreements. The purpose of the data room will be to review the data packages with potential farm-in partners. The price of this agreement is US $1,500,000 and only payable on a successful farm-in assignment. The consideration for the US $1,500,000 will be in common shares of the Company and the share price will be the market value on the day of successful farm-in assignment. Shares issued will be subject to a four month hold period.

About HRT Petroleum

HRT Petroleum is considered the leading integrated geological, geochemical and geophysical service company in Latin America and West Africa. It possess a proprietary expertise in harnessing science and high resolution technology to bring to its clients a series of exploration tools unique in the evaluation and quantification of oil and gas prospective resources and also to assess and quantify exploration risk. HRT has the largest and most successful independent team of petroleum basin modelling geoscientists in the whole South Atlantic realm, with the most complete geological, geochemical and geophysical database.

Financing

The Company has arranged a non brokered financing for up to $4,000,000 through the issuance of up to 8,000,000 common shares at a price of $.50 per share. There is no warrant attached to this financing and the shares will be subject to a four month hold period. A 3% finder's fee is payable in cash and the net proceeds will be used for satisfying the cash outlay for the HRT Services Agreement and general working purposes. This private placement is subject to regulatory approval.

About Universal Power Corp.

Universal Power Corp. (www.universalpowercorp.com) is an independent oil and gas exploration and development company with broad based Black Economic Empowerment partnerships, trading its common shares publicly on Canadian and German exchanges. The company currently holds interests in 6 Blocks of offshore concessions covering over 32,000 sq km in Namibia, West Africa.

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, and changes in business strategy, regulatory requirements, and 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: 58,166,671

The TSX Venture Exchange has not reviewed and does not accept responsibility of the adequacy or accuracy of this news release.

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