IRVINE, Calif., March 22, 2011 (GLOBE NEWSWIRE) -- 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.