Sempra Energy unit acquires interest in Universal Energy Group Ltd.

Feb 2, 2007

Media Contact:
Doug Kline/Jennifer Andrews

Analysts Contact:
Karen Sedgwick

Sempra Energy

Sempra Energy

(877) 866-2066

(877) 736-7727

www.sempra.com

investor@sempra.com

 

        TORONTO, Feb. 2, 2007– Sempra Energy Trading Corp. , which does business in North America as Sempra Commodities, today announced that it has acquired 4,609,780 common shares of Universal Energy Group Ltd. in connection with the closing of the initial public offering of common shares of Universal Energy Group.  

        Through its subsidiaries, Universal Energy Group sells electricity and natural gas to residential, commercial and industrial customers in Ontario and is constructing an ethanol facility in Saskatchewan, Canada, designed to produce approximately 150 million liters of ethanol annually.

        As the result of contractual arrangements, Sempra Energy Trading has the right to appoint a director to the board of directors of Universal Energy Group. 

        Today, Universal Energy Group announced that it had completed the initial public offering of 11,363,637 common shares at a price of $11 per common share for gross proceeds of $125,000,007.  Also today, Sempra Energy Trading acquired ownership of 4,609,780 common shares, representing approximately 12.7 percent of the outstanding common shares of Universal Energy Group.

        Sempra Energy Trading acquired the common shares from treasury pursuant to a private agreement as consideration for transferring its securities of Universal Energy Corp. and Terra Grain Fuels Inc. to Universal Energy Group in connection with the closing of Universal Energy Group’s initial public offering. 

        Sempra Energy Trading acquired voting control over common shares pursuant to a pooling agreement entered into in connection with the closing of the initial public offering and the aforementioned acquisitions.  The common shares issued pursuant to the initial public offering and the common shares acquired by Sempra Energy Trading are listed on the Toronto Stock Exchange.

        In the future, Sempra Energy Trading may take such actions in respect of its holdings as it may deem appropriate in light of the circumstances then existing, including the purchase of additional common shares or other securities of Universal Energy Group through open-market purchases or privately negotiated transactions, or the sale of all or a portion of its holdings in the open market or in privately negotiated transactions to one or more purchasers.

        An “early warning” report on this transaction is available to investors by contacting Rich Beitler at Sempra Commodities in Connecticut at (203) 355-5403.

        Based in Stamford, Conn., Sempra Commodities, a unit of Sempra Energy (NYSE: SRE), is a leading participant in marketing and trading physical and financial commodity products, including natural gas, power, petroleum products and base metals.  Sempra Commodities combines trading and risk-management experience with physical-commodity expertise to provide innovative solutions for its customers worldwide.

        Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2005 revenues of $11.7 billion.  The Sempra Energy companies’ 14,000 employees serve more than 29 million consumers in the United States, Europe, Canada, Mexico, South America and Asia.

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Sempra LNG and Sempra Pipelines & Storage are not the same companies as the utilities, SDG&E or SoCalGas, and are not regulated by the California Public Utilities Commission.  Sempra Energy Trading, doing business as Sempra Commodities, and Sempra Generation are not the same companies as the utilities, SDG&E or SoCalGas, and the California Public Utilities Commission does not regulate the terms of their products and services.

 


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