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Universal Bioenergy Inc. (Pink Sheets:UBRG), a publicly traded alternative energy company, announced it has sold a record sales volume of 3.41 billion cubic feet, (Bcf) of natural gas to six of its 22 major electric utility customers for the month of December, through its subsidiary NDR Energy Group.
Two of the largest customers that purchased gas were Southern California Gas Company, a subsidiary of Sempra Energy (NYSE:SRE), the nation's largest natural gas distribution utility, with 20.7 million consumers, and CenterPoint Energy Resources Corp., a wholly owned subsidiary of CenterPoint Energy Inc. (NYSE:CNP), with 3.2 million customers in six states. The other four customers were the largest electric utilities in the states of New York, Maryland, California and Washington D.C.
Universal's President, Vince Guest, states, "Texas Gulf Oil & Gas Inc. was established as a direct result of the rising demand of fuel supplies that is required by our 22 major electric utility customers, and growing corporate customer base, through NDR Energy Group. The new company will contract directly with producers to obtain supplies of natural gas and petroleum from the wellhead, and manage the distribution of the product through the transmission pipelines. The products will be marketed and sold to our customers through our subsidiary, NDR Energy Group. This should generate three revenue streams, from gas supplies, transmission, and sales."
"We're very excited about partnering with ProGas Energy in this new venture. ProGas has developed over 2000 oil and gas wells, and they have over 200 years of combined experience in the oil and gas industry. Natural gas is a clean burning alternative fuel, and we believe its use will grow in electric power generation and natural gas vehicles. We also believe, our stock is highly undervalued, especially since, through our NDR Energy subsidiary, we have gas supply contracts with 22 major utilities such as National Grid, PG&E, Southern California Gas, CenterPoint Energy Resources, and of our pending $10.4 million acquisition of Roblex. Universal's exploration costs for its share of the field is estimated at less than 10% of the current NYMEX price for October, which is $3.40 per mcf, allowing us to earn a 90% gross profit, or $3.00 per mcf at current prices, on the spread of gas that we'll own in the field and sell to our customers. The Management of NDR Energy Group believes they can sell an estimated $1 billion of natural gas in the next 12 to 18 months," says Universal's Sr. V.P., Solomon Ali.
