Oct 21 2010
Universal Bioenergy Inc (UBRG), an alternate energy company, has decided to develop an oil and gas field, recently uncovered in Jim Wells County of the Texas Gulf Coast natural trend along with ProGas Energy Services, by signing a Letter of Intent. Initially ten wells would be developed, with a future plan of developing 110 wells, which would supply natural gas and oil, for the country wide customers of Universal.
This joint venture is a milestone for Universal, with three key benefits to the company and its shareholders. This venture would permit Universal to obtain natural gas directly reducing expenses meted out to other producers. Secondly, this would be its own natural gas source, which it could market to its customers all over U.S. with a higher profit margin. Lastly, Universal would be able to supply gas produced by both themselves and other industry partners such as ProGas Energy anytime unlike other marketing companies who have to purchase gas subject to its availability.
Solomon Ali, Senior Vice President, Universal, declared that the company was very eager to work with ProGas on this project, and that they wanted to sign a final agreement very quickly. The final conditions and terms of the deal would be decided in the definitive agreement with no assurances, subject to approval of the management of both the companies and their board of directors.