Universal Bioenergy Inc. (fka UBRG)

[bradakus]

PALM COAST, Fla., Aug 25, 2009 (GlobeNewswire via COMTEX) -- Universal Bioenergy Inc., (Pink Sheets:UBRG) a company focused on the development and production of alternative energy sources and green technologies, announced today that it has signed a multi-million dollar contract with Mississippi Investment Petroleum Company (MIPCO), a next generation biofuels energy producer and marketer.
Under the terms of the agreement MIPCO will have a biodiesel fuel production arrangement and lease of Universal Bioenergy's biodiesel fuel refinery in Nettleton, Mississippi to produce and distribute biodiesel fuel to the Southeast, Midwest and Gulf Coast regions of the United States. The estimated gross revenue to be generated from the fuel sales to the end user is $30 million. The gross operating profit to Universal Bioenergy is estimated at $3 million, with a net profit of $2.4 million per year, since the company will incur no operating costs other than general and administrative expenses. Universal Bioenergy is currently debt free and the current market value of its refinery plant at full operation is estimated at $13+ million.

Their Chief Executive Officer Dr. Richard Craven states, "This contract will be very favorable to Universal Bioenergy, in terms of our revenue, growth, expansion goals and to secure similar contracts with other firms in the future." It is projected that the refinery would be producing fuel in November of this year, and would produce about 12 millions gallons per year at current capacity.