IRVINE, Calif., Mar 22, 2011 (GlobeNewswire via COMTEX) -- 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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