Universal Granted Approval to Purchase Namibian Oil & Gas Assets
Universal Power Corp. reported that the TSX Venture Exchange has accepted for expedited filing the transaction to purchase up to 90% of Kunene Energy (Pty) Ltd. The Company has completed its due diligence and will now proceed to close the acquisition.
In February, the Company entered into a Letter of Intent with Telpon Property Holdings Inc. (Telpon) to purchase up to 90% of all of the issued and outstanding shares in the capital of Kunene Energy (Pty) Ltd. ("Kunene") a Namibian oil and gas exploration and production company led by Mr. Knowledge Katti.
The Company will pay Telpon $850,000 cash and will issue 1,500,000 shares and 1,500,000 share purchase warrants of the Company upon completion of due diligence and TSX Venture Exchange ("TSX-V") approval.
The LOI will establish a strategic partnership designed to exclusively position Universal with ownership in key Namibian oil and gas assets while allowing Kunene to access foreign capital to fuel growth. The partnership cooperates with proposed Namibian Black Economic Empowerment ("BEE") initiatives through equity and project ownership in the Company.
Barry Swanson, CEO of Universal stated "this acquisition is a major step for our company and shareholders as we move closer to our goal of becoming a successful global energy exploration and production company. The purchase of Kunene immediately gives us a carried interest in a potential multi-billion barrel oil and gas project (Block 1711) set to commence drilling next month plus two off-shore oil and gas concession blocks (2713 A&B) in the prolific Orange Basin. Furthermore, with our partner the Namibian BEE, we will work closely on developing future oil and gas projects in the country".