Sky Petroleum Provides Business and Operations Update

Sky Petroleum, Inc. (OTCBB: SKPI), an oil and gas company, today
provided an update on its business and operations at the First
U.S.-Albania Investment Forum in New York.

Sky Petroleum reported that it engaged a consulting team on August 22,
2011 to make field development recommendations for their Albanian
prospects. A technical team led by Tim Parson, formerly Occidental Oil
Co., analysed technical data and made recommendations for three of the
ten Sky Petroleum prospects in Albania. Based on the analysis, oil shows
in Palokastra indicate potential for further drilling 'up-dip? and oil
shows in Kanina show potential for further testing of fractured
intervals independently and with more detailed isolation. Sky Petroleum
G&G is in the process of refining exploration plans.

Summarizing the data, Dumre has deepening potential given that a VSP at
6,015m showed 'potential seismic reflector at 6,250m? in 1995. TD is
6,119m in 5-3/4? hole and 7? casing cement channelled up to ~800m
restricting 7? cut-and-pull options to drill greater than 5-3/4?
side-track around top-of-fish at 5,942m but there is potential to drill
a 5-3/4? side-track for geological information that will reach
carbonates and prove a reservoir for later development. Seismic
unreliability through salt has made predicting top carbonate difficult
historically. Further detailed planning with G&G, contractors and
service companies is priority for Sky Petroleum.

Information presented at the First U.S.-Albania Investment Forum can be
reviewed at Sky Petroleum′s website at www.skypetroleum.com.

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 the Republic of Albania

Albania has a population of 3.5 million people and is located 50 km east
of Italy, across the Adriatic Sea in Southeast Europe. Albania is a
member of NATO, and has applied to join the European Union. Albania is a
proven hydrocarbon producing region with earliest known bitumen
production dating back to the Roman Empire. Modern exploration began in
the early 1900s. The Patmos ? Marinza and Kucova heavy oilfields are
among the largest oilfields in Europe. To date there have been ten
significant field discoveries that have produced more than 150 million
barrels.

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 www.skypetroleum.com.

Safe Harbor

Except for historical information, the matters set forth herein, which
are forward-looking statements, including statements related to
analysis, plans, prospects and projections, 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 accuracy of historical
data, risks related to geologic interpretation, 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.

Sky Petroleum, Inc.

Investor and Public Relations, 512-687-3427

info@skypetroleum.com