Universal Bioenergy, a High Growth Energy Company Signs Major Contract With Global Energy Group to Begin Energy Trading, Proj...
May 13 2014 - 12:55PM
Marketwired
Universal Bioenergy, a High Growth Energy Company Signs Major
Contract With Global Energy Group to Begin Energy Trading, Projects
Sales of $100 Million
Global Energy Group Moves Forward to Expand and Capitalize on
Its Investment
IRVINE, CA--(Marketwired - May 13, 2014) - 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.
Media Relations: Solomon Ali 704-837-5705