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.
About The CompanyUniversal 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. The Universal Bioenergy Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6784 For inquiries contact: Media Relations at 888-263-2009 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.
CONTACT: Media Relations 888-263-2009