IRVINE, Calif., March 3, 2011 (GLOBE NEWSWIRE) -- Universal Bioenergy Inc. (Pink Sheets:UBRG), announced today that Progas Energy Services confirmed that it has stuck oil and gas on several wells that it has drilled in Texas. Progas Energy Services is Universal's joint venture partner in developing an oil and gas field in Jim Wells County Texas. The plans include potentially developing up to 115 oil and gas wells from this field.
The Guerra #2 well was drilled to a depth of 4000' through the Miocene and Frio Sands, and encountered over 100' of sands which cored and/or tested natural gas and 20' of oil sands between depths of 2200' and 4000' in 14 distinct gas sands and 2 oil zones. The lower lobe of the Laughlin sand was perforated and tested an open flow potential of over 9,000 mcf/d per day. The reserves of the "Laughlin Sand" will not be given a formal reserve evaluation until the upper zone has been tested, but preliminary estimates based on standard reserve formulas, give the sand an estimated 1,000,000 to 1,500,000 mcf in gas reserves, or $3,000,000 to $5,000,000 in gas reserves net to the owners of the well from 15' of gas sand in this zone. In addition, the field and this well is unusual because of the number of sands which cored and tested oil or gas at this shallow depth.
Though the perimeter of the field has not been established all indications are that the field is much larger than initially thought, possibly housing 20,000,000 bbls of oil, with an estimated value of $2.01 billion based on the March 3, 2011, NYMEX price, and over 20,000,000 mcf of natural gas, with an estimated value of $75.8 million, based on the March 3, 2011 NYMEX price, excluding the shallower zones that cored gas but which have not been tested yet.