UBRG News
Universal Bioenergy Starts Generating Revenues From Coal Sales From Whitesburg Coal Mine
2012-08-28 06:00 ET - News Release
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.
