IRVINE, Calif., June 8, 2011 (GLOBE NEWSWIRE) -- Universal Bioenergy Inc. (Pink Sheets:UBRG ) has signed a Letter of Intent with Pacific Rim Native American Investments Corporation, a Native American company, based in Rancho Cucamonga, California, in an oil and gas development transaction with a potential sales value of $500 million to $1 billion. On June 8, 2011, formal notification detailing the transaction was filed in a Form 8K with the SEC.
Universal would act as Developer and Manager for Pacific Rim for a period of 5 years to develop, explore, drill, manage and market the oil and natural gas potential on lands and territories owned, managed or controlled by Pacific Rim on behalf of many sovereign Indian Nations and Tribes. According to Pacific Rim, they presently represent over 30 federally recognized sovereign Indian Nations and Tribes who own or control millions of acres of lands in the States of California, Oregon, Nevada, Arizona, Montana and Oklahoma.
Universal will also be granted the right to develop alternative energy projects including solar, biofuels and wind projects. Universal will evaluate any existing oil and gas agreements Pacific Rim has with other oil & gas companies to potentially acquire the rights to market the oil and gas from those wells on behalf of Pacific Rim.
Vince M. Guest, Universal's President, says, "We're very excited about this joint venture with Pacific Rim and the Indian Nations. This project may generate an estimated 300 to 500 new jobs and provide more employment for Universal and the Indian Nations. Based solely on our initial due diligence, we believe this project could produce an estimated $100 to $200 million in annual revenues. The estimated profit to be generated could be $20 to $40 million annually. Based on industry standards of valuation utilizing current average P/E ratios as noted by Standard & Poor's at a multiple of 15 - 17 times earnings, a valuation of $300 million to $600 million dollars is an estimate of the additional market value of this transaction to Universal."
The final terms and conditions of the joint venture are being negotiated and will be determined in the definitive agreement. No assurances can be provided that a definitive agreement will be executed. Execution of a definitive agreement is subject to, among other things, confirming due diligence by Universal, standard regulatory approvals and other conditions and approval by either or both companies management and Board of Directors.
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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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.
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