Universal Energy Group Ltd.
TSX : UEG

Universal Energy Group Ltd.

November 12, 2008 16:30 ET

Universal Energy Group Announces Discussions Regarding Prospective Transaction

TORONTO, ONTARIO--(Marketwire - Nov. 12, 2008) - Universal Energy Group Ltd. ("UEG") (TSX:UEG) announced today that it has signed a Letter Agreement with Commerce Energy Group, Inc. ("Commerce Energy") regarding a potential transaction. Commerce Energy has entered into a period of exclusive negotiations with UEG extending through November 26, 2008, in order to permit UEG to conduct due diligence and reach a definitive agreement.

The basic terms of the proposed transaction involve a purchase by UEG of certain customer contracts of Commerce Energy relating to the natural gas and electricity retailing business and an equity investment in Commerce Energy. UEG anticipates that the aggregate consideration for the transaction will be US$16 million and will be funded through existing cash on hand. At this time there can be no assurance that any transaction will ultimately materialize.

Universal Energy Group's common shares are listed on the Toronto Stock Exchange under the symbol "UEG". Universal Energy Group through its subsidiary Universal Energy Corporation, sells electricity and natural gas in Ontario and natural gas in British Columbia to residential, small to mid-size commercial and small industrial customers. Universal Energy Group through its subsidiary Universal Gas & Electric Corporation, sells natural gas in Michigan to residential, small to mid-size commercial and small industrial customers. Universal Energy Group through its subsidiary National Energy Corporation, operating under the trade name National Home Services, sells long-term water heater rental programs to Ontario residential customers. Universal Energy Group through its subsidiary Terra Grain Fuels Inc. operates an ethanol facility near Belle Plaine, Saskatchewan. Additional information about Universal Energy Group is available on SEDAR (www.sedar.com).

Contact Information

  • Universal Energy Group Ltd.
    Stephen Plummer
    Chief Financial Officer
    (416) 673-1160
    Email: splummer@uegl.ca
    or
    Universal Energy Group Ltd.
    Shawn Dym
    Senior Vice President, Business Development
    (416) 673-4761
    Email: sdym@universalenergy.ca