SOURCE: Universal Energy Corp.

December 07, 2010 09:30 ET

Oil Prices Surge as Universal Energy Corp. Prepares for 2011

HOUSTON, TX--(Marketwire - December 7, 2010) - Universal Energy Corp. (PINKSHEETS: UVSE), currently listed on the Pink Sheets (www.otcmarkets.com), commented today on the recent surge in oil prices. As of yesterday, oil traded above $90, its highest levels in 26 months.

Billy Raley, CEO, stated, "There are a few factors at work creating this surge. First, cold temperatures have significantly tightened demand for oil. Additionally, the current US administration has recently reversed its policy on allowing offshore oil drilling in the eastern Gulf of Mexico or off the Atlantic and Pacific coasts as part of the next five-year drilling plan. However, these factors only add proverbial fuel to the fire of soon to be runaway energy prices."

In a recent interview regarding the state of the industry, Dyron Watford, CFO of Universal Energy Corp., noted, "With QE II (quantitative easing) weakening the US dollar, commodity prices are set to surge in 2011 as dollar denominated crude around the world becomes cheaper for everyone except US citizens. With China's government run China National Offshore Oil Corp. investing over $2 billion in south Texas, we see that regardless of what pundits say about US energy resources, it is obvious that the US continues to have significant untapped energy resources. Even with a weak US economy, it's hard to see a path different than the one that lead the US to $147 oil in July 2008."

Watford concluded, "As the company prepares for 2011, the strengthening in commodity prices is a positive for our revenue and it should also equate to an exciting year for Universal stockholders."

Universal Energy Corp. is a publicly traded (PINKSHEETS: UVSE) energy company engaged in the acquisition and development of crude oil and natural gas leases in the United States. We pursue oil and gas prospects in partnership with oil and gas companies with exploration, development and production expertise. Our prospect areas consist of lands in Louisiana and Texas. Visit www.universalenergycorp.info  for more details.

Forward Looking Statements -- The information contained herein regarding risks and uncertainties, which may differ materially from those set forth in these statements, in addition to the economic, competitive, governmental, technological and other factors, constitutes a "forward-looking statement" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 and is subject to the safe harbors created thereby. While the company believes that the assumptions underlying such forward-looking information are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking information will prove to be accurate. Accordingly, there may be differences between the actual results and the predicted results, and actual results may be materially higher or lower than those indicated in the forward-looking information contained herein.

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