Sky Petroleum, Inc. (OTCBB: SKPI), an oil and gas company with
activities in Albania and the United Arab Emirates, announced today that
it has agreed to the terms of a non-brokered private placement (the
'Offering?) to raise US$2.0 million. The Company will issue 8,000,000
Class A Units (the 'Class A Units?) at a price of US$0.25 per Unit.
Each Class A Unit consists of one share of common stock of the Company,
par value US$0.001 (a 'Common Share?) and one Class A Warrant (each, a
'Class A Warrant?). Each Class A Warrant is exercisable to acquire one
Class B Unit of the Company (a 'Class B Unit?), at an exercise price of
US$0.35 per Class B Unit for a period of one (1) year. Each Class B Unit
consists of one share of Common Share of the Corporation, par value
US$0.001 and one Class B Warrant (each, a 'Class B Warrant?). Each Class
B Warrant is exercisable to acquire one Common Share of the Corporation,
par value US$0.001 at an exercise price of US$0.60 for a period of two
(2) years. The Company will grant the investors registration rights in
connection with the Offering.
The Offering proceeds will be primarily used for the development of the
Production Sharing Contract ('PSC?) with respect to the three
exploration blocks, Four, Five and Dumre.
The securities offered by Sky Petroleum have not been registered under
the Securities Act of 1933, as amended, or any state securities laws,
and may not be offered or sold absent applicable exemptions from such
registration requirements. The Class A Units were offered and sold
outside the United States to non-U.S. persons in reliance upon
exemptions from the registration requirements of the Securities Act.
This press release does not constitute an offer to sale or solicitation
to buy securities.
Exploration Blocks Four, Five, and Dumre
The PSC has a seven-year term with three exploration periods. Upon
commercial discovery of gas, the agreement allows for development and
production periods of 25 years plus extensions at the Company′s option.
Block Four is located in southeast Albania, bordering on Greece; Block
Five is located in southwest Albania next to the Adriatic Sea; and Block
Dumre is located immediately north of the Kucova oil field. Based on
analogous discoveries, it is believed that the prospects contain
significant hydrocarbons.
About Sky Petroleum
Sky Petroleum (OTCBB: SKPI) is an oil and gas exploration company. Sky
Petroleum's primary focus is to seek opportunities where discoveries can
be appraised rapidly, and developments can be advanced either by
accessing existing infrastructure, or by applying the extensive
experience of established joint-venture partners. In addition, the
company also plans some higher risk, higher reward exploration
prospects. For additional information please visit
Safe Harbor
Except for historical information, the matters set forth herein, which
are forward-looking statements, including the intended use of proceeds.
Forward-looking statements involve certain risks and uncertainties that
could cause actual results to differ. Potential risks and uncertainties
include, but are not limited to, the competitive environment within the
oil and gas industry, the extent and cost effectiveness with which Sky
Petroleum is able to implement exploration and development programs in
the oil and gas industry, obtaining drilling equipment on a timely
fashion, commodity price risk, and the market acceptance and successful
technical and economic implementation of Sky Petroleum's intended plan.
Additional discussion of these and other risk factors affecting the
company's business and prospects is contained in the company's periodic
filings with the SEC.
