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I agree....this is a pretty big deal.
Universal Bioenergy Announces it Closes Acquisition of Whitesburg Coal Mine in Deal Valued at $264 Million
IRVINE, Calif., Feb 28, 2012 (GlobeNewswire via COMTEX) -- Universal Bioenergy Inc., (OTCMarkets:UBRG), a publicly traded independent diversified energy company, is pleased to announce that it has closed the transaction for the acquisition of a 40% stake in the Whitesburg Friday Branch Mine LLC, a producer and provider of thermal steam coal in eastern Kentucky in a deal valued at over $264 million over the next five years. Formal notification of the closed transaction is pending filing with the U.S. Securities and Exchange Commission on Form 8-K, which will include a copy of the definitive agreement.
The Company will now rapidly expand into the coal energy market sector now that it has completed this acquisition. Thermal/Steam non-coking coal is used as a primary source of energy for coal fired powered plant electric generation. Universal and Whitesburg will mine, produce and market "Thermal/Steam" coal to sale to its electric utility customers for power generation The Whitesburg mining operations are the surface and high wall mining type and does not include any underground mining. Whitesburg owns the leases for the coal mineral rights, has the mining permits from the State of Kentucky and expects to start full mining production in March 2012. The deal is projected to generate over $264 million in estimated revenues for the Company over the next 5 years.
Domestic and global demand for coal continues to grow. According to the American Coal Foundation, 9 out of every 10 tons of coal mined in the United States today is used to generate electricity, and more than half of the electricity used in this country is coal generated electricity. The U.S. Energy Information Administration (EIA) says coal as a fuel source for electricity generation will increase 25% by 2035 in the United States. Overall, the EIA predicts that coal will remain the dominate fuel source for electricity generation, growing to about 11,000 terawatt hours from its current level of about 8,000.
Universal's President Vince M. Guest states, "This acquisition marks a major milestone for us, as it gives us a diverse energy product portfolio including natural gas, propane, oil and coal. We believe this acquisition will help position us to up-list to NASDAQ, and take advantage of our other acquisition targets in the energy industry. Under the terms of the agreement, Universal will market the coal, and the mine is projected to generate an estimated $264 million in gross revenues for Universal over the next 5 years. That's an average of $52.80 million in sales annually, in additional to our estimated $71.74 million in sales for 2011. The potential earnings to be generated from this acquisition is estimated at $5 to $8 million annually for Universal alone. Although we cannot guarantee an actual valuation, according to industry valuation standards using average P/E ratios from Standard & Poor's, at a multiple of 15 times earnings, a valuation of $75 to $120 million dollars is an estimate of the potential additional market capitalization value of this acquisition alone to Universal."
About Universal Bioenergy Inc.
Founded in 2004, Universal Bioenergy Inc., is a publicly traded independent diversified energy company that produces and markets natural gas, petroleum, coal and propane. We market energy resources to the largest public utilities, electric power producers and local gas distribution companies in the U.S., that serve millions of commercial, industrial and residential customers. We are also engaged in the acquisition and development of existing or recently discovered oil and gas fields, leases and surface coal mines. For more information visit www.universalbioenergy.com
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.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Universal Bioenergy Inc.
By Staff
CONTACT: CONTACT: Media Relations:
Solomon Ali
949-559-5017
Awesome. News today is fantastic!
Universal Bioenergy Announces it Starts Full Operations of Whitesburg Coal Mine
Coal is Expected to be on the Ground This Week to Begin Generating Revenues
IRVINE, Calif., Mar 5, 2012 (GlobeNewswire via COMTEX) -- Universal Bioenergy Inc., (Pink Sheets:UBRG), a publicly traded independent diversified energy company, announced today that the Whitesburg Friday Branch Mine has begun full production and coal mining operations. On February 28, Universal announced that it had closed the acquisition of a 40% stake in the Whitesburg Friday Branch Mine LLC, a producer of thermal steam coal in eastern Kentucky in a deal valued at over $264 over the next five years.
Universal has now expanded into the coal energy market sector with this acquisition. Thermal/Steam non-coking coal is used as a primary source of energy for coal fired powered plant electric generation. The Whitesburg mining operations are the surface and high wall mining type, also known as opencast or open-cut mining, which is very economical when the coal seam is near the surface. This method recovers a higher proportion of the coal deposit than underground mining as all coal seams are exploited and 90% or more of the coal can be recovered.
Whitesburg has a full assortment of heavy coal mining equipment operating on the site including Caterpillar Bulldozer's with Single Shank Rippers and SU-Blade and Rippers, Hydraulic Excavators, Loaders, Trucks and other equipment. Whitesburg has begun to drill and blast two areas of the mine, and to remove the overburden of soil and rock from the coal by means of explosives, which is then removed by heavy power loaders and trucks. The overburden of rock and soil has been removed to expose the coal seam to make the coal accessible, which is drilled, fractured and systematically mined in strips. Coal is expected to be on the ground this week. The coal will then be loaded on to large trucks for transport to the customers.
Whitesburg's Vice President of Business Development, Pete Monroe, says, "Whitesburg Friday Branch Mine has begun full production and operations. Over the past few months, land reclamation work has progressed and passed inspection by the State of Kentucky, paving the way to extracting coal from the mine. In the past two weeks, drilling and blasting in preparation for removal of coal has begun and it is expected that coal will be on the ground by the end of this week. We are excited about the partnership with Universal Bioenergy and look forward to a very financially rewarding project as our operations maximize the full value of the mineral rights and leases under contract."
About Universal Bioenergy Inc.
Founded in 2004, Universal Bioenergy Inc., is a publicly traded independent diversified energy company that produces and markets natural gas, petroleum, coal and propane. We market energy resources to the largest public utilities, electric power producers and local gas distribution companies in the U.S., that serve millions of commercial, industrial and residential customers. We are also engaged in the acquisition and development of existing or recently discovered oil and gas fields, leases and surface coal mines. For more information visit www.universalbioenergy.com.
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.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Universal Bioenergy Inc.
By Staff
CONTACT: CONTACT: Media Relations:
Solomon Ali
949-559-5017
Stocktamer Profiles Universal Bioenergy Inc. ($UBRG)
"Charting a Bold New Course in Energy!"
OTC Disclosure & News Service
Universal Bioenergy's NDR Energy Group Awarded Contract With Major Gas Utility for $11.47 Million
Universal Bioenergy Forecasts Strong Sales and Earnings From Whitesburg Coal Mine in 2012
Universal Bioenergy Formally Notifies the SEC of the Closing of Its Whitesburg Coal Mine Acquisition
Universal Bioenergy Announces it Closes Acquisition of Whitesburg Coal Mine in Deal Valued at $264 Million
Universal Bioenergy, Inc. Headquarters
19800 MacArthur Blvd., Suite 300
Irvine, CA 92612
Tel. 949-559-5017 or toll-free 888-263-2009
Fax. 951-281-4651
General information and inquiries
info@universalbioenergy.com
Parties interested in investing in Universal
investor@universalbioenergy.com
Stocktamer Profiles Universal Bioenergy Inc. ($UBRG)
"Charting a Bold New Course in Energy!"
OTC Disclosure & News Service
Universal Bioenergy's NDR Energy Group Awarded Contract With Major Gas Utility for $11.47 Million
Universal Bioenergy Forecasts Strong Sales and Earnings From Whitesburg Coal Mine in 2012
Universal Bioenergy Formally Notifies the SEC of the Closing of Its Whitesburg Coal Mine Acquisition
Universal Bioenergy Announces it Closes Acquisition of Whitesburg Coal Mine in Deal Valued at $264 Million
Universal Bioenergy, Inc. Headquarters
19800 MacArthur Blvd., Suite 300
Irvine, CA 92612
Tel. 949-559-5017 or toll-free 888-263-2009
Fax. 951-281-4651
General information and inquiries
info@universalbioenergy.com
Parties interested in investing in Universal
investor@universalbioenergy.com
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