CALGARY, April 5 /CNW/ - Universal Power Corp. (TSX-V:UNX) announced today the renewal for Petroleum Exploration License Block 1711 was granted by the Ministry of Mines and Energy ("MME") for the Republic of Namibia, for an additional two year period. The renewal notice dated 1 April 2010 confirms UNX will maintain a carried interest throughout the next phase of the property's evaluation.
"Preliminary results presented to-date for Kunene No. 1 well located within Block 1711 clearly suggest the regional presence of a large hydrocarbon-charged reservoir. The two year renewal period will provide sufficient time for the block's participation group to perform the planned work program in following up on the very encouraging results achieved to-date on the concession," said Mr. Gabriel Ollivier, CEO of Universal Power.
Ownership in Block 1711 is distributed between Nakor Investments Limited, an affiliate of the Sintez Group LLC (70% working interest), EnerGulf Resources Inc (10% working interest), PetroSA (10% working interest), NAMCOR (7% carried interest) and Kunene Energy (Pty) Ltd. (3% carried interest). Universal owns 90% of Kunene Energy (Pty) Ltd.
About Block 1711 and Kunene Well No. 1
Block 1711 is situated in the Namibe basin off the northern coast of Namibia along the international boundary with Angola. Two separate exploration prospects, the Kunene and Hartmann, have been identified by seismic data on the 893,100 hectare (2.2 million acre) block.
In fulfillment of the work program specified in the initial four years of the Exploration License, the Kunene No. 1 commenced drilling in April 2008. On August 6, 2008, the drilling and logging operations on the Kunene No. 1 were completed to a total depth of 5,050 meters below sea level, so as to assess three prospective zones, being the Albian, the Aptian, and Barramian-aged zones. The MME enforced a "tight hole status" during the drilling and testing of the well, and retained the well results as confidential for approximately one year subsequent to the rig release.
On July 21, 2009, the MME released summarized results on the Kunene No. 1 well. While testing issues and concerns over reservoir quality around the borehole were addressed, the MME was nonetheless encouraged by the PetroAlliance Service Co. of Moscow's view (a subsidiary of Schlumberger), being that there appears to be the possibility of a large gas accumulation of up to 14 TCF between 4,698 and 4,748 meters (this estimate not being compliant with NI 51-101).
About Universal Power Corp.
Universal Power Corp. is an oil and gas company focused on building a portfolio of high impact exploration targets in offshore Namibia, Africa. The Company has more than 32,000 square kilometers of concessions along the prolific South Atlantic Margin. The Company has a newly expanded managerial and technical team supported by strong Namibian partnerships, and is thus well positioned to make a significant contribution to the exploration and development of Namibia's offshore oil concessions.
Forward Looking Information
This news release contains certain forward-looking statements that reflect the current views and/or expectations of Universal Power Corp. with respect to its performance, business and future events. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, those relating to changes in the market, potential downturns in economic conditions, foreign exchange fluctuations, changes in business strategy, regulatory requirements, demand for our resources, competition and dependence on key personnel. These risks, as well as others, could cause actual results and events to vary significantly. Universal Power Corp. does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information visit our website at: www.universalpowercorp.com
SOURCE UNIVERSAL POWER CORP.
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