IRVINE, CA - March 26, 2014 - Universal Bioenergy Inc. (OTCQB: UBRG), a publicly traded independent diversified energy company, announced that it is in advanced contract negotiations with an energy trading firm for a major joint venture to generate substantial long-term revenues for the Company through the sales and financial trading of natural gas, electricity, petroleum and related energy contracts.
In its plans for growth and expansion, the Company is planning to form a strategic alliance with the energy trading company, which has its own energy trading desk, to generate higher revenues, margins and earnings. The Company is projecting that an estimated $100 million in revenues could be generated through the joint venture from the financial trading from the energy contracts, and the estimated profits could be from 2% to 20%, or an estimated $2 to $20 million.
Due to recent changes in part to the sweeping Dodd-Frank financial regulatory overhaul, and the Volcker Rule, the Company is positioning itself to take financial advantage of the new opportunities in the marketplace for financial trading of energy contracts. Both parties are in advance contract negotiations to finalize the terms of the joint venture, its scope of operations and then proceed with a definitive agreement.
Universal's Senior Vice President Solomon Ali says, "We are very excited about this strategic alliance in the financial trading of natural gas, electricity and petroleum. We are in an aggressive pursuit this year to increase our margins and generate strong profits for the Company. We believe this should have a very positive effect on our stock price and the future value of the Company. We are moving forward very expeditiously with the contract negotiation process and to complete our due diligence process."
The final terms and conditions of the transaction will be determined in the definitive agreement, which is subject to, among other things, final due diligence by Universal Bioenergy, and other conditions, and approvals by both companies' management and board of directors. No assurances can be provided that a definitive agreement will be executed.
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
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.