Overview

Universal Energy Corp. is an independent diversified energy company engaged in the acquisition of crude oil and natural gas leases in the United States and Canada. With two energy business subsidiaries, Universal Explorations Inc. and Universal Energy Services Inc., we pursue oil and gas prospects in partnership with oil and gas companies with exploration, development and production expertise.

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Investment Highlights

• Reserve potential for the Amberjack prospect is 10.7 Billions of Cubic Feet Equivalent (BCFE), with an expected flow rate of 5-8 Million Cubic Feet per day (MMCF/D).
• The four Caviar 3-D prospects, which are located within 5 miles of each other have a total reserve potential of 4.7 Million Barrels of Oil Equivalent (MMBOE).
• Growth in the Chinese and Indian economies has helped push world oil prices to record highs and most analysts suggest that this is not just a “passing phenomenon.”.
• With many oil producing countries in decline, new supply has been slow coming to market causing the beginning of a drastic increase in the price of barrels of oil.
• Yuma’s East OMG 3D prospect is located in Cameron Parish, Louisiana. This prospect is adjacent to but separated by one large fault from the 500+ Billions of Cubic Feet Equivalent (BCFE) Chalkley Miogyp field.
• The Lone Oak, is a 3-D drill ready prospect with enormous potential. Universal Energy Corp. has acquired a 12.5 percent interest before casing point of this prospect with total potential reserves exceeding 136 billion cubic feet equivalent.
• In addition to searching for Oil in within the United States, the company views the province of Alberta in Canada, as a prime area for drilling operations.

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Demand for Oil

The demand for oil in the United States is showing no signs of slowing down. In fact, it’s quite the opposite.



The bad news – global demand is on the same pace.



With many oil producing countries in decline, new supply has been slow coming to market causing the beginning of a drastic increase in the price of barrels of oil. The following graph, adjusted for inflation, shows just that:



China & India Demand

Growth in the Chinese and Indian economies has helped push world oil prices to record highs and most analysts suggest that this is not just a “passing phenomenon.” Within China, government price adjustments have helped consumers with the jump in energy costs. How long China can subsidize their consumers, no one knows. The IEA estimates that China and India will account for 40 percent of worldwide growth in oil demand this year. This graphic shows just how the economic growth in China is affecting overall worldwide demand:

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Search for Oil

Why and where Universal Energy Corp. is searching for Oil?

The United States had 21.4 billion barrels of proved oil reserves as of December 31, 2004, the eleventh highest in the world according to the US Energy Information Administration’s 2004 Annual Report on U.S. oil and natural gas reserves.

Eighty percent of the entire United States reserves are concentrated in four states:

• Texas 22%
• Louisiana 20%
• Alaska 20%
• California 18%

The company is currently concentrating their efforts on oil properties in Texas and Louisiana based on favorable economic and environmental/regulatory trends.

In addition to searching for Oil in within the United States, the company views the province of Alberta as a prime area for drilling operations. Currently, Canada is one of the largest net importers of oil into the United States (approximately 1.6 million bbl/d). The chart below represents a list of the importers into the United States:

Source: US Energy Information Administration

Based on the political problems associated with the importers listed above, Canada, due to its proximity and political stability, will provide excellent opportunities for the company's drilling operations.

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Prospects

Amberjack Prospect

The Amberjack 3-D Prospect is an amplitude supported, 10500’, normal pressured, drilling venture located in inland waters of Plaquemines Parish, Louisiana. The project targets multiple Middle Miocene (Tex-W, Big-H) sands on a well defined structural closure. This test is surrounded by quality, mature, fields which define the prolific nature of the objective section. Reserve potential for the prospect is 10.7 BCFE, with an expected flow rate of 5-8 MMCF/D.

The Amberjack Prospect is an opportunity to test a amplitude of exceptional quality on a tightly controlled and well defined up-thrown structural closure. Nearby well control provides very positive sand control and geophysical calibration which significantly reduces risk. The prospect sits in a fairway outstanding production from numerous fields which provide excellent production and geophysical analogies.

Caviar Prospect

The Caviar 3-D Package is a multi-well, amplitude supported exploration project located in the shallow inland waters of Plaquemines Parish, Louisiana. The four 3-D prospects, which are located within 5 miles of each other, are normal pressured, Middle Miocene (Cib-Carst, Tex-W) tests with objectives between 9,000’ and 11,000’. Numerous prolific fields in the immediate area, such as Pointe a la Hache (175 BCF and 15 MMBO), Delacroix Island (230 BCF and 24 MMBO), and Black Bay (169 BCF and 164 MMBO) produce from this sand section. Reserve potential for the entire project is 4.7 MMBOE.

The Caviar 3-D project is an opportunity to drill four well defined structural closures with multiple amplitude anomalies in an established prolific trend. The amplitude anomalies have the characteristics necessary to classify them as exceptional including high amplitude, structural fit, regional productive analogs and AVO. Each prospect has multiple regionally consistent sandstone objectives which combine to provide significant reserve upside.

Lake Campo Prospect

The Lake Campo Field Prospect is an amplitude supported, 3-D development project located 23 miles Southeast of New Orleans, Louisiana in the shallow inland waters of Plaquemines Parish. This 10,100’ normal pressured Middle Miocene (Tex-W) age test involves further development of Lake Campo Field which has to date produced 25 BCFE. The 3-D seismic indicates the top of this productive structure has not been tested in ten sands between 8400’ and 9800’. Three of these sands are established producers with water drive support and can be considered low risk objectives. Three of the remaining six objectives have associated amplitude anomalies.

The Lake Campo Field prospect is an opportunity to use recent 3-D seismic technology to further develop a water drive gas field developed in the early 1960’s that has to date produced 25 BCFE. This low risk prospect targets ten high quality, regionally consistent Miocene age sand objectives of which three are attic gas objectives, three are amplitude anomaly objectives, and four are structural objectives. The abundant well control provides the positive sand story and it combined with the 3-D seismic clearly defines the structural picture and the location of the critical trapping fault.

Pembina Nisku Reef Prospect

In September 2006, Universal Energy Corp. acquired the Pembina Nisku Reef project from 1097885 AB. Ltd. situated in the Pembina oil field in an area that is concentrated with Nisku Pinnacle Reef occurrence. The company will earn a 95% working interest in these leased lands by drilling a test well to the base of the Nisku formation, subject to a convertible 15.0% GORR. They are currently reviewing 3-D seismic and performing telluric data testing on this project. The allowable 160 acre spacing does permit for up to three wells to be drilled on these lands.

EAST OMG Prospect

Yuma’s East OMG 3D prospect is located in Cameron Parish, Louisiana. This prospect is adjacent to but separated by one large fault from the 500+BCFE Chalkley Miogyp field, which produces from the same Upper Miogyp sandstones that are the main objective of the East OMG Prospect. Yuma’s proposed, slightly deviated, 16,500’ (TVD) well will not only test the Upper Miogyp, but also an AVO supported Camerina structure 400’ high to logged pay on water in a flank well, and a shallower Marg Howei structure that appears to have been proven productive by a well that logged and tested pay, but had completion problems. These shallower Camerina and Marg Howei objectives represent viable, arguably PUD drilling objectives that greatly reduce the risk associated with the prospect. The combined reserve potential of the four principal objective sandstones that comprise the East OMG prospect is estimated to be greater than 59 BCFE.

In generating the East OMG prospect, Yuma utilized approximately 200 square miles of 2003 vintage reprocessed 3D Pre-Stack Time Migrated seismic data, that was then reprocessed in 2006 by Yuma (using Tricon) to create a proprietary PSTM volume. This reprocessed data has greatly improved the structural resolution of the prospect and also allowed for AVO evaluation of the Camerina objective. Yuma has secured all of the acreage necessary to control this prospect. Participants will have access to 12 square miles of this data to evaluate this relatively low risk, yet large up side, opportunity of Yuma’s offices.

Yuma has a history of exploration in this area and in September 2005 made a discovery on its “OMG” prospect, approximately 1.5 miles northwest of the proposed East OMG drill site; this well is currently producing out of the Lower Miogyp.

Lone Oak Prospect

Universal Energy announced, in mid-September, that the Company has entered into a participation agreement for a major oil and gas prospect in Texas.

The prospect, known as Lone Oak, is a 3-D drill ready prospect with enormous potential. With this agreement, the company has acquired a 12.5 percent interest before casing point of this prospect with total potential reserves exceeding 136 billion cubic feet equivalent ("BCFE").

The 3,526 acre Lone Oak Prospect is located in the prolific Frio-Vicksburg trend of Chambers and Galveston Counties, Texas. This area (Houston Salt Basin) is where over 4 trillion cubic feet of gas and 4 billion barrels of oil have been produced since 1900. Lone Oak is nine miles northeast of Eagle Bay Field which has produced over 110 billion cubic feet of gas and 10 million barrels of condensate from the Vicksburg sandstone reservoirs. The multiple objectives of Lone Oak are the same Vicksburg sandstone reservoirs produced at Eagle Bay Field as well as other fields within the trend.

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Recent News and Press Releases

Universal Energy Corp. Signs Agreement for Ninth 3-D Drill Ready Prospect in Past Six Months (Tue, Oct 9)

StockGuru.com Announces Profile Coverage of Universal Energy Corp. (Mon, Oct 8)

Universal Energy Corp. Anticipates Commencement of Drilling at East OMG in Less Than Two Weeks (Wed, Oct 3)

Universal Energy Corp. Announces Continued Drilling Success (Wed, Sep 26)

Universal Energy Corp.'s Success Continues with Drilling at Caviar #1 (Fri, Sep 21)

Universal Energy Corp. Expands Drill Ready Portfolio with Acquisition of High Impact Prospect in Galveston Bay, Texas (Tue, Sep 18)

Universal Energy Corp. Begins Drilling at Caviar #1 Well as Oil Prices Hit Record Highs (Thu, Sep 13)

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Management

Billy Raley - Chief Executive Officer

Mr. Raley serves as the CEO of Universal Energy Corporation (UEC), a diversified energy company currently focused on oil and gas exploration. He previously held the position of Regional Vice President for Progress Energy Florida, Inc., a Progress Energy Company where he was responsible for operations and community relations throughout a six-county area in Central Florida. His team consisted of 400 company employees and 200 contract employees, most of who were responsible for distribution construction and operations to nearly 400,000 customers.

Prior to joining Progress Energy Florida in 2002, he was the Vice President of Transmission for Carolina Power & Light, also a Progress Energy Company. In that position he was responsible for the construction and maintenance of all transmission facilities in North and South Carolina. He also provided oversight for all transmission engineering and maintenance for the Florida transmission system. Mr. Raley’s background is comprised of over 25 years of electric utility industry experience, including expertise in the areas of Transmission and Distribution Operations, Construction and Maintenance, and Nuclear Generation.

Dyron M. Watford - Chief Financial Officer

Mr. Watford, a Certified Public Accountant, was appointed to serve as our Principal Accounting Officer and was elected to serve as a director of the company in November 2002. Since August 2000, Mr. Watford has served as the president, sole stockholder and director of Sirus Capital Corp, Inc., a consulting company providing financial services to existing and emerging private and public companies. From December 1998 to August 2000, Mr. Watford was an auditor for Arthur Andersen, LLP. Mr. Watford obtained a Master of Business Administration degree from the University of Central Florida in December 1998.

Kevin Tattersall - Chief Exploration Officer

Mr. Tattersall has over 25 years of experience in the resource exploration business with the last 10 years being focused on the oil and gas industry. Mr. Tattersall’s resource exploration experience began in the late seventies where he worked for many years in the field as a geophysical/ geochemical exploration consultant for various mining companies. His duties included applying magnetic and induced polarization field surveys along with intensive soil geochemistry sampling programs.

In 1986, Mr. Tattersall began to diversify his educational and business efforts in the oil and gas industry. Mr. Tattersall’s interest to incorporate and learn the business and technical aspect of the oil & gas exploration industry was a natural progression. In 1987, he attained the position of Exploration Manager for Big Valley Resources Inc. and thereafter on to Vice President of Corporate Finance. There Mr. Tattersall assisted the company with financing requirements on their initial public offering. In total, Mr. Tattersall and his associates raised approximately $10,000,000 via private placements and various brokerage house financings. The efforts and investment capital raised allowed Big Valley Resources to jointly discover the now producing Imperial Metals, Mount Polley Copper Gold Mine in Central British Columbia Canada.

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Contacts

Universal Energy Corp.
30 Skyline Drive
Lake Mary, FL 32746
Main: (800) 975-2076
Fax: (800) 805-4561
Email: dwatford@universalenergycorp.info

Website
http://www.universalenergycorp.info

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FORWARD LOOKING STATEMENTS

This report includes forward-looking statements that reflect Universal Energy Corp. current expectations about its future results, performance, prospects and opportunities. Universal Energy Corp. has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "we are confident" or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause Universal Energy Corp.'s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company's growth expectations and ongoing funding requirements, and specifically, the Company's growth prospects with scalable customers, and those outlined above. Other risks include the Company's limited operating history, the Company's history of operating losses, consumers' acceptance, the Company's use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company's securities, the possible volatility of the Company's stock price, the concentration of ownership, and the potential fluctuation in the Company's operating results.

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Disclaimer

AllPennyStocks.com feature stock reports are intended to be stock ideas, NOT recommendations. Please do your own research before investing. It is crucial that you at least look at current SEC filings and read the latest press releases. Information contained in this report was extracted from current documents filed with the SEC, the company web site and other publicly available sources deemed reliable. For more information see our disclaimer section, a link of which can be found on our web site. This document contains forward-looking statements, particularly as related to the business plans of the Company, within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created by these sections. Actual results may differ materially from the Company's expectations and estimates. This is an advertisement for Universal Energy Corp. The purpose of this advertisement, like any advertising, is to provide coverage and awareness for the company. The information provided in this advertisement is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country.

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