IRVINE, Calif., Feb. 24, 2012 (GLOBE NEWSWIRE) -- Universal Bioenergy Inc., (OTCBB:UBRG), a publicly traded independent diversified energy company, announced today that NDR Energy Group, its subsidiary, is in advanced negotiations for a joint venture for a natural gas storage facility services agreement with one of the largest natural gas distributors in the U.S. to generate more revenue and profits.
Under the joint venture, the gas distribution company which owns and operates over 100 billion cubic feet of underground gas storage facilities will provide the storage capacity, and NDR Energy Group would purchase, supply and transport the natural gas from the gas fields to the facility for storage. NDR Energy would sell the natural gas in the marketplace to meet seasonal load imbalances, engage in futures contracts and spot market sales, physical gas trading, financial gas trading; includes hedging, and the use of natural gas derivatives and other financial instruments to generate greater revenues and profits.
Natural gas storage plays a very important role in ensuring the reliability of the gas supply to meet the seasonal demands, meet un-expected supply disruptions, and to meet base and peak load requirements in the marketplace. Natural gas is primarily stored underground in large depleted gas reservoirs, aquifers, and salt caverns. The storage facilities are often located in close proximity to metropolitan centers that do not have a readily available supply of natural gas produced in the local area. Natural gas storage facilities are used by exploration companies, producers and local distribution companies to store natural gas when prices are low, and later withdrawing the gas to sell it when prices are higher.
Universal's President Vince M. Guest states, "We are very pleased with the progress NDR Energy is making in adding gas storage as one of our major new profit centers for the Company. This should bring the Company significant revenues and profits this year. The gas storage joint venture opens up whole new opportunities for us in terms of gas trading, hedging, management, options, swaps and other sources of income. We anticipate the negotiations of this transaction being completed and the contract being signed very soon."
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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