Universal Power Corp.

Universal Power Corp.

July 07, 2009 16:29 ET

Universal Signs Letter of Intent to Acquire Control of Block 2815 Off-Shore, Namibia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 7, 2009) - Universal Power Corp. (TSX VENTURE:UNX)(FRANKFURT:3U2A) (the "Company") announced today that it has entered into a Letter of Intent ("LOI") dated July 07, 2009 to acquire an additional 60% interest in Petroleum Exploration Licence ("EL") 2815 off-shore Namibia. Following completion of due diligence and TSX Venture Exchange ("TSX-V") approval, the Company will pay $1,000,000 and issue 3,000,000 common shares of the Company for an additional 60% of Block 2815 and thus bringing its total interest to 90%.

Under the terms of the LOI, the Company will purchase from Limpet Investments (Proprietary) Limited ("Limpet") 60% 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, Africa. Limpet 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. The Company plans to evaluate the existing data and work towards attracting third parties to participate in drilling.


Pursuant to the terms of the LOI dated July 07, 2009 the Company will acquire from Limpet, 60% of all the issued and outstanding securities in the capital of NIDG which currently holds the licence to explore Block 2815. As consideration for the 60% of NIDG, the Company will pay Limpet US $1,000,000 of which US $500,000 has been paid in the form of a refundable deposit and issue 3,000,000 common shares of the Company. In addition, on completion and subject to regulatory approval, the Company shall pay a finder's fee of 300,000 common shares in the capital of the Company. Shares issued will be subject to a four month hold period. Universal has the ability to allocate this acquisition to its 100% controlled subsidiary Cumoxi Investments (Pty) Ltd. ("Cumoxi"). Cumoxi currently owns a 30% carried interest in NIDG.

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.


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: 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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