Universal Closes Purchase of Namibian Oil & Gas Assets
Universal Power Corp. has now completed the initial 20% purchase of Kunene Energy (Pty) Ltd.
Universal holds an option to increase its ownership in Kunene from 20% to 90%. The additional 70% will cost the Company $5,000,000 and consideration will be cash of $1,500,000 and shares for the balance. The Company has until September 15, 2008 to exercise this option.
Kunene is a Namibian BEE company founded by local businessman Knowledge Katti, and is positioned to hold strategic interests in high profile African oil and gas projects. Mr. Katti is also a director of Universal.
Kunene's most advanced project is Petroleum Exploration License 1711 in the Namibe Basin off the coast of Namibia. The operator and majority holder of Block 1711, Russia based Sintezneftegaz, has commenced drilling, targeting a multi-billion barrel oil and gas resource. Kunene has a 3% carried interest in Block 1711 and this interest is carried to production.