|By Marketwired .||
|May 13, 2014 12:55 PM EDT||
IRVINE, CA -- (Marketwired) -- 05/13/14 -- Universal Bioenergy Inc. (OTC Pink: UBRG) (PINKSHEETS: UBRG), a publicly traded independent diversified energy company, that markets and distributes natural gas and petroleum, announced that it signed a major contract in a joint venture with Global Energy Group LLC to begin the physical and financial trading of natural gas, electricity, petroleum and related energy commodities. The transaction was approved by the Company's Board of Directors and reported to the SEC on Form 8-K.
Universal Bioenergy is forecasting that an estimated $100 million in annual revenues could be generated through the joint venture from the financial trading from the energy contracts. The estimated profits from the joint venture are in the 2% to 20% range, or an estimated $2 to $20 million annually.
Universal Bioenergy entered into an Acquisition, Marketing and Distribution Agreement with Global Energy Group LLC. The Agreement is for the parties to engage in a venture whereby GEG will use its energy order fulfillment platform to engage in the physical and financial trading of natural gas, electricity, petroleum and related energy commodities. Global Energy Group LLC, the company's major shareholder, with offices in the United States and the United Kingdom, is a holding company whose primary business is the acquisition of strategic business assets, companies and investment or joint ventures in both private and public companies. In April 2013, Global Energy Group acquired a major stake in the Company and is now planning to expand and capitalize on its investment.
The joint venture partners have positioned themselves to purchase and sell energy commodities in North America, Europe and the global energy markets. The parties plan to utilize highly experienced energy traders to engage in the physical and financial trading of natural gas, electricity, petroleum, diesel fuel and jet fuel. The venture partners plan to purchase and trade energy contracts on the spot and long-term market, and trade financial futures and power contracts to generate higher revenues, margins and earnings through Global Energy Group's Energy Platform.
Universal's Senior Vice President Solomon Ali says, "We feel very excited about this new joint venture with Global Energy Group. We are fully prepared to capitalize on this opportunity. This gives us the right direction, at the right time and should help drive us to greater revenues and profitability. The potential earnings for the venture is estimated at $2 to $20 million annually. 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 $30 to $300 million dollars is an estimate of the potential additional market value of the earnings to Universal. We feel this should be very beneficial to our shareholders."
Universal Bioenergy is a high growth diversified energy company that is experiencing double-digit growth, and reported sales of over $60.22 million in its Annual Report for 2013. NDR Energy Group, a subsidiary of Universal Bioenergy, has purchase contracts for natural gas with 32 of the largest public utilities, electric power producers and local gas distribution companies that serve millions of commercial, industrial and residential customer in the United States.
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
For inquiries contact: Media Relations: Solomon Ali at 704-837-5705
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.