IRVINE, Calif., Dec. 6, 2011 (GLOBE NEWSWIRE) -- Universal Bioenergy Inc. (Pink Sheets:UBRG), an independent diversified energy company, announced that it has signed a definitive agreement for the acquisition of Whitesburg Friday Branch Mine LLC as part of its continuing plans for growth and expansion. The transaction is projected to generate over $264 million in estimated revenues in the next 5 years.
Universal is a high growth company that continues to grow at double digit rates. The Company generated record revenues of $49,904,114 for the nine months ended September 30, 2011 as compared to $20,355,534 for the same period in 2010. This resulted in an increase in revenues of $29,548,548 or 145% for the nine months ended September 30, 2011, as compared to the same period for 2010. The Company is also planning more acquisitions in the oil, gas and coal energy sectors.
Universal Bioenergy and Whitesburg Friday Branch Mine LLC, a Kentucky Limited Liability Company, entered into an agreement whereby Universal will acquire 40% of the interests and assets of Whitesburg from JLP & Partners LLC of Kentucky. Thermal coal is used as a primary source of energy for coal fired powered plant electric generation. The Whitesburg Mine operates, mines and markets thermal coal in eastern Kentucky for sale to electric utilities for use in coal fired power plant electric generation. The Whitesburg mining operations are the surface and high wall mining type and does not include any underground mining. Whitesburg owns the leases for the coal mineral rights, has the mining permits from the State of Kentucky and expects to start mining production in December.
Solomon Ali, Universal's Senior Vice President says, "Despite the recession, the long-term picture for coal is red hot right now. We are very excited about this acquisition and believe this is great news for our shareholders. The marketing of high grade thermal coal should give us a high margin energy product to sell to our 27 electric utility customers that purchase natural gas through our subsidiary NDR Energy Group and should increase our revenues and profitability in 2012. According to Whitesburg, the mine is projected to produce over $264 million in revenues from the sale of coal in the next 5 years."
The Energy Information Administration projects that 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.
The closing of the transaction is expected to occur in the fourth calendar quarter of 2011. The completion of the transaction is subject to various customary conditions, including the final approval of the closing by Universal's Board of Directors, the obtaining of all requisite regulatory, administrative or governmental authorizations, consents and other customary closing conditions.
About The Company
Universal Bioenergy Inc. is a diversified energy company that produces and markets natural and alternative energy sources including natural gas, petroleum, coal and related energy technology products. It plans to build the company into a prominent player in the energy industry. To learn more about Universal Bioenergy Inc., please refer to the following analyst coverage from RaincoIndustries.com. (http://www.raincoindustries.com/index.php?option=com_content&view=article&id=109&Itemid=167)
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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.