IRVINE, Calif., Dec. 5, 2012 (GLOBE NEWSWIRE) -- Universal Bioenergy Inc., (OTCMarkets:UBRG), a publicly traded independent diversified energy company, that markets natural gas, propane, and produces petroleum and coal, announced today it is working with the management team of the Whitesburg Friday Branch Mine, in negotiations with several commodities brokers to sell them major quantities of thermal steam non-coking coal. The coal is slated for immediate export to China, in a transaction valued at an estimated $81.6 million over the next 12 months.
The brokers are requesting an order to purchase an initial estimated 100,0,000 tons of high grade thermal steam coal per month for the next twelve months, for foreign export to a company in China. The total estimated amount of coal to be delivered for the next twelve months is estimated at 1,200,000 tons, at an estimated $68.00 per ton based on the current spot market pricing.
Thermal/Steam non-coking coal is used as a primary source of energy for coal fired powered plant electric generation. Universal's Whitesburg Friday Branch Mine produces thermal steam coal in eastern Kentucky. The Whitesburg mining operations are the surface and high wall mining type, also known as opencast or open-cut mining, which is very economical when the coal seam is near the surface.
According to the American Coal Foundation, 9 out of every 10 tons of coal mined in the United States today is used to generate electricity, and more than half of the electricity used in this country is coal generated electricity. The U.S. Energy Information Administration (EIA) says, coal as a fuel source for electricity generation will increase 25% by 2035 in the United States. Overall, the EIA predicts that coal will remain the dominate fuel source for electricity generation, growing to about 11,000 terawatt hours from its current level of about 8,000.
Universal's President Vince M. Guest states, "We are very excited about this new transaction, as it allows us to open new doors for the global markets for our energy products. Our marketing team is working very closely with the management team of our Whitesburg Friday Branch Mine in Kentucky to complete the negotiations for this transaction. The potential revenues and earnings from the sale of coal for export to China and other countries opens up tremendous opportunities for us. Our plans include major sales of refined energy products, electric power and more strategic acquisitions in the energy industry, to increase our revenues and earnings."
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
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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.
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Source:Universal Bioenergy Inc.