IRVINE, Calif., March 22, 2011 (GLOBE NEWSWIRE) -- Universal Bioenergy Inc. (Pink Sheets:UBRG ), an energy Company, announced that Progas Energy Services, its joint venture partner, is preparing to drill several new oil and gas wells in the Premont Northwest Field, in Texas, after it announced it had stuck oil and gas on the first three wells on March 3, 2011.
According to Progas Energy Services, they have moved the drilling rigs on location to workover and open up an additional zone on the Guerra #2, and have moved the drilling rigs onto the Garcia #2 well, to open up another zone in that well. They have also lowered the pump and are working on the Barnsdall well. Progas is planning to perforate another sand after working over the Guerra# 2 to open up another zone.
"We're very excited about the advancement on the current wells, and the progress Progas Energy is making toward drilling the new oil and gas wells. We're moving forward to do exactly as we said we would. We anticipate that the drilling of these first three wells should start bringing an immediate profit to Universal, estimated in the range of $600,000 to $1,000,000 annually. This is just for the first three wells alone, and does not include the future wells that are to be drilled. The plans include potentially developing up to 115 oil and gas wells from this field. Although we cannot assure an actual valuation, according to industry valuation standards using average P/E ratios from Standard & Poor's, at a multiple of 20 times earnings, we believe that $12 million to $20 million is an estimate of the potential additional market value this would bring to Universal," states Universal's President, Vince M. Guest.
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.
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- 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.
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