| Oil company enhances local exploration properties through purchases |
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| Written by Staff Reporters | |
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Canadian company Universal Power Corp. signed a Letter of Intent (LOI) to buy a 30% carried interest in Petroleum Exploration Licence 2815 off - shore Namibia, it was announced on June 24.
The company will pay US$1.5 million for the interest
upon completion of due diligence and after receiving TSX Venture
Exchange approval.
Under the terms of the agreement, Universal will purchase from Cumoxi Investments (Pty) Ltd 30% of the issued and outstanding common shares of the Namibia Industrial Development Group (Pty) Ltd, which has oil and gas exploration licences to explore Block 2815 and the off-shore portions of blocks 2816 and 2915. EL 2815 covers an area of about 10,858 square kilometres situated directly east of the proven Kudu Gas Field and slightly north of the Orange Basin, offshore Namibia. It was previously owned by Chevron (Namibia) 40%, Shell Namibia 40% and Energy Africa Namibia 20%, and, according to the Shareholders agreement, Cumoxi’s 30% interest is carried to production. Historical work on block 2815 includes a modern seismic survey over approximately 50% of the block and minimal drilling. The company plans to evaluate the existing data and to work with the block operator in attracting third parties to participate in drilling. Universal Power Corp. also has a 2.7% carried interest in Block 1711 and a 100% working interest in Block 2713 A and B through its investment in Kunene Energy (Pty) Ltd., a Namibian Black Economic Empowerment company founded by local businessman Knowledge Katt and said to be strategically positioned in high profile African oil and gas projects. It currently owns 20% of Kunene and has the option to increase that ownership to 90%. It has until 15 September to acquire the additional 70% stake in the company and has undertaken to pay US$5,000,000 - US$1,500,000 in cash and the balance in shares. 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, Russian-based Sintezneftegaz, has commenced drilling, targeting a multi-billion barrel oil and gas resource at an initial depth of 4,400 metres, Barry Swanson, Universal Power Corp.’s Director and CEO, said recently. Universal Power Corp. intends to fast-track exploration at its properties in Namibia, and acquire more properties in the country. Last week’s agreement however came two weeks after Universal Power Corp. closed a non-brokered private placement of up to 8,000,000 units, whose net proceeds – Swanson said – would be used to progress exploration and complete the acquisition of new oil and gas prospects. |
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