Universal Bioenergy, Inc. (OTCQB: UBRG) is a diversified, primarily hydrocarbon energy developer based in Irvine, CA, with an focus on aggressively pursuing natural gas, coal, oil, and alternative energy sources that will help facilitate its goal to be one of the top vertically integrated independent energy companies in the U.S.
Universal’s 49%-owned subsidiary, NDR Energy Group LLC (Charlotte, NC), is the primary natural gas operating unit and sold over 1.7B cubic feet of natural gas this August alone, pumping the stuff straight into the national energy supply via 29 of our largest domestic utility, electric power production, and even local gas distribution companies. Given the nature of the extremely soft gas market in 2012, the 22 signed contracts with major domestic utility companies like CenterPoint Energy Resources, Pacific Gas & Electric, and the Southern California Gas Company to name a few, went a long ways towards improving shareholder value.
That volume of gas sold under such market conditions is rather exceptional, representing a roughly 47% jump over the prior year’s figures for August. Already booked and sold, the natural gas sold from August alone will generate millions in sales revenues for the company. NDR is a full service seller and marketer of natural gas and has a complete suite of ancillary product capabilities in propane (HD-5), as well as other refined petroleum products. NDR even specializes in providing energy efficient lighting systems, as well as sustainable, alternative, and renewable class energy solutions designed for carbon footprint reduction. To this end NDR is also a major provider of energy management services, working directly with clientele to devise a highly-adapted, custom energy solution that is right for them.
A similar proficiency in coal was recently demonstrated by the initial revenues generated at UBRG’s Whitesburg Friday Branch Mine, down in Whitesburg, KY. The Whitesburg facility is churning out the perfect type of thermal/steam non-coking resource ideal for coal fired power plants. With some 3M tons of recoverable coal under contract (Elkhorn No. 3 Seam), the company is looking at a projected $52.80M in revenues and $5-8M in earnings annually. Whitesburg is just one example of the vast domestic coal production potential available and UBRG’s ability to sew up the challenging logistical/profit-taking end of the coal game puts shareholders in the ROI zone as the company moves to secure a larger production footprint. With U.S. EIA (Energy Information Administration) data projecting a 25% increase by 2035 for coal as an electricity source, we see a clear continued dominance of coal, with output rising from the current level nearly 38% to some 11k terawatt hours, an extremely promising long-term landscape for UBRG’s coal efforts.
Whitesburg has opened up augering in two segments already (with a third bonded and ready for augering) and the mining plan projects a dual auger unit configuration in order to meet mining forecast tonnage quantities. We are talking an estimated $264M in revenues over the next five years of development, and the company is currently in negotiations to acquire adjacent acreage. The objective here would be to ultimately secure a revised high wall mining Permit (anticipated for November) and the retaining of a high wall mining contractor to really take mine output to the next level. Already generating revenues in Q2 2012, the Whitesburg property is on schedule for Q4 earnings, led by hot summer months requiring substantial amounts of energy output from the nation’s grid.
Having reorganized structurally towards the goal of achieving a dominant market position in only 2010, a strong sector M&A strategy has led to a considerable foothold in a very short time for UBRG, with targets across the hydrocarbon and alternative energy spectrum all fair game.
The final current piece of the UBRG puzzle is the Georgia-based Texas Gulf Oil & Gas Inc. division created to develop, via JV, various domestic oil and natural gas opportunities, ultimately resulting in optimal natural gas and oil purchases from the wellhead. This division is also set up to handle the transmission and marketing of purchased fuels for dovetailing into the vertically integrated UBRG energy pipeline. The December 2010 agreement with ProGas Energy Services Inc. to JV with the company’s Texas Gulf subsidiary set the stage for this vector in the Premont Northwest oil and gas field.
With a full-court press on energy resource targets from across the spectrum, UBRG is dead set on carving out a dominant role for itself in the domestic energy game.
For more information on Universal Bioenergy Inc., please visit the company’s website at: www.UniversalBioEnergy.com
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