Sky Petroleum Provides Operations and Development Update
Albanian Field Development Progress
Sky Petroleum, Inc. (OTCBB: SKPI), an oil and gas company, today
provided an update on its operations and field development. Sky
Petroleum reported on September 19, 2011 that it engaged a consulting
team that was analyzing technical data and has now 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 is in the process of refining exploration and
development plans based on the technical team analysis.
Pathfinder, a Schlumberger company, commenced theoretical planning for
extended reach side-tracks and determined that initial engineering
indicates all three wells are drillable. A detailed engineering proposal
will be undertaken when various feasibility studies have been completed.
The consulting team is commencing additional analysis on technical data
on seven additional prospect areas for future exploration and
development. The long-term goal of the technical analysis is to confirm
reserve potential of 875 million barrels of oil equivalent (MMBOE) with
a potential market value of between $1 billion to $3 billion based on
expected P90 reserves of approximately 105 MMBOE at $10 to 30 per barrel
of oil equivalent (BOE). Ongoing work and analysis is in progress.
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 www.skypetroleum.com.
Safe Harbor
Except for historical information, the matters set forth herein, which
are forward-looking statements, including statements related to
anticipated reserves, potential reserves, potential market value,
estimated barrels of oil, valuation, 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. The
potential reserve estimates are not prepared in compliance with oil and
gas disclosure requirements for filings with the SEC, and would not be
permitted in filings with the SEC and are not comparable to reserves
reported in SEC filings. Information contained in this press release is
presented for informational purposes and are not intended to be included
in the Company′s SEC filings. 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
