Universal Power Corp. Inks LOI for Control of Block 2815 Offshore Namibia
Universal Power Corp. has entered into a Letter of Intent dated July 07, 2009 to acquire an additional 60% interest in Petroleum Exploration License ("EL") 2815 offshore 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 license to explore block number 2815 and the offshore 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.
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 license 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.