updated 12/23/2010 2:46:43 PM ET 2010-12-23T19:46:43

IRVINE, Calif., Dec. 23, 2010 (GLOBE NEWSWIRE) -- Universal Bioenergy Inc. (Pink Sheets:UBRG), a publicly traded alternative energy company, announced today, that it is has signed an agreement with ProGas Energy Services Inc., of Texas.

The agreement is a joint venture between "Texas Gulf Oil & Gas," Universal's new subsidiary, and ProGas, to jointly develop a newly discovered or recently discovered oil and gas field located in Texas's Gulf Coast natural trend, in Jim Wells County Texas. The plans include potentially developing up to 110 oil and gas wells from this field. Three initial wells have already been drilled, are producing oil and gas, and should bring immediate profit to Universal. ProGas Energy has developed over 2000 oil and gas wells, and have over 200 years of combined experience in the oil and gas industry. According to ProGas Energy, the estimated reserves of the field, are over 20 million barrels of oil, (an estimated value of $1.82 billion at today's NYMEX price of $91.48 per barrel), and 17 billion cubic feet (bcf), of gas.

"This is another major step for the Company, as it allows Universal to acquire natural gas from the ground, for a small fraction of the purchase costs that it currently pays for gas. Universal's exploration costs for its share of the field is estimated to be less than 10% of the current NYMEX price for November, which is $4.14 per mcf, allowing Universal to earn a 90% gross profit, or over $3.74 per mcf at current prices, on the spread of gas that it owns in the field. Universal will be able to market the gas produced, that it owns, as well as the gas of the other industry partners in the development of the field, such as ProGas Energy, who have offered Universal the right to market their gas," says Universal's Sr. Vice President Solomon Ali.

About The Company

Universal Bioenergy Inc. is an alternative energy company, and intends to create and market natural and alternative energy sources including natural gas, solar, biofuels, wind, synthetic fuels and related energy technology products. It plans to build the company into a prominent player in alternative energy.

For inquiries contact: Media Relations at 888-263-2009

The Universal Bioenergy Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6784

Safe Harbor Statement- There are matters discussed in this media information that are forward looking statements within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. Such statements are only forecasts and actual events or results may differ materially from those discussed. For a discussion of important factors which could cause actual results to differ from the forward looking statements, refer to Universal Bioenergy Inc.'s most recent annual report and accounts and other SEC filings. The company undertakes no obligation to update publicly, or revise, forward looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.

CONTACT:  Universal Bioenergy Inc. 
          Vince Guest
          (888) 263-2009
          Fax: (951) 281-4653

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved


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