Actually the ModalPopupExtender is preventing the form from postback. Just don't include OkControlID property and it should work well.
<asp:ModalPopupExtender runat="server"
ID="MPEUserList"
TargetControlID="SelectUserBtn"
PopupControlID="Pnl"
BackgroundCssClass="ModalBackground"
DropShadow="true"
CancelControlID="CancelBtn">
</asp:ModalPopupExtender>