Universal Power Corp. announced that it has entered into a Letter of Intent ("LOI") to acquire a 30% carried interest in Petroleum Exploration License ("EL") 2815 offshore Namibia. The Company will pay US $1,500,000 for the interest upon completion of due diligence and TSX Venture Exchange ("TSX-V") approval.
Under the terms of the LOI, the Company will purchase from Cumoxi Investments (Proprietary) Limited ("Cumoxi") 30% of the issued and outstanding common shares of Namibia Industrial Development Group (Pty) Ltd, ("NIDG"). NIDG has the oil and gas exploration license to explore block number 2815 and the off-shore portions of blocks 2816 and 2915 Namibia, dated September 22, 2006 issued to NIDG by the Commissioner for Petroleum Affairs: Ministry of Mines and Energy, Namibia. According to the Shareholders agreement, Cumoxi's 30% interest is carried to production.
Pursuant to the terms of the LOI dated June 23, 2008 the Company will acquire from Cumoxi, 30% of all the issued and outstanding securities in the capital of NIDG which currently holds the license to explore EL 2815. As consideration for the 30% of NIDG, the Company will pay Cumoxi $1,500,000 of which $300,000 has been paid in the form of a refundable deposit.
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