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 obtain loans through the offer of 8% Convertible
Promissory Notes due January 8, 2014 (the 'Notes?) in the
aggregate amount of up to US$1,000,000 (the 'Offering?).
The Notes are convertible into shares of common shares of the Company ('Common
Shares?) at a conversion price of US$0.25 per share (the 'Conversion
Price?) and interest on the Notes is payable in cash or, at the
option of the Company, in-kind in Common Shares at the Conversion Price.
The Note 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 and to pay certain fees,
expenses and obligations in connection with the arbitration related to
the dispute with the Ministry of Economy, Trade, and Energy of Albania,
acting by and through AKBN regarding the Company′s PSC.
The Notes 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 Notes 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 sell or a solicitation to buy securities or
the notes.
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 south west 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 in 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.
