IRVINE, Calif., Aug. 28, 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, has continued sales of commercial coal from the Whitesburg Friday Branch Mine (WFBM) in Whitesburg, Kentucky and has begun generating revenue. The Company forecasts the sales of coal could generate an estimated average of $52.80 million in revenues and an estimated $5 million to $8 million in earnings annually.
The Whitesburg Friday Branch Mine is a producer and provider of thermal steam coal. Thermal/Steam non-coking coal is used as a primary source of energy for coal fired powered plant electric generation. Whitesburg, currently has over 3 million tons of recoverable coal under contract in the Elkhorn No. 3 Seam in Letcher County, Kentucky.
WFBM has opened up the left side of increment No. 1 to begin the augering process, as well as opening increment No. 6. State Inspectors have required that WFBM add a pond on increment No. 6, prior to any additional mining on that increment. WFBM management is working to have the pond finished as quickly as possible and certified by its engineers. Once the pond is complete WFBM will be able to rotate the present auger equipment between the left side and increment No. 6.
In addition, WFBM bonded increment No. 4, and should have that section opened for the second auger unit. The mining plans include building the bench up 10 feet, which will allow getting the auger unit in place. Once that is complete, this will allow WFBM to get a total of 2 auger units working and achieve the tonnage quantities per the mining production forecasts. WFBM management is carefully tracking the supply, demand and prices of coal which directly impacts the production rate of the mining operations.
WFBM is in negotiations with other land owners for the property adjacent to our mine, to obtain coal mineral leases surrounding the property, in an effort to add to the revised high wall mining Permit. WFBM management is working toward a November target date for completion of the high wall revision to the Permit. Engaging the services of a high wall mining contractor could significantly increase the operations, production and the revenues from the sales of coal.
Universal's Senior Vice President Solomon Ali states, "We are very excited about the revenues that have started to be generated from the Whitesburg coal mine, in the second quarter as we projected. The exceptionally hot weather for the summer months has caused an increased demand for electricity for coal fired power plants, due to the increased need for air conditioning. We believe we should begin to generate some potential earnings toward the fourth quarter this year. Based on the financial forecasts from Whitesburg's management, the mine is projected to generate an estimated $264 million in revenues during the next 5 years, or an average of $52.80 million per year. The Company has some other major announcements forthcoming about some other accomplishments we are completing that we believe will have a positive affect on our shareholders."
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.