Sky Petroleum Provides Drilling Progress Report

3/8/2006, 2:56 PM (Source: GlobeNewswire)
Current Depth Is More Than 8,000 ft; Company Continues to Fund Drilling Program on Schedule

AUSTIN, TX -- (MARKET WIRE) -- 03/08/2006 -- Sky Petroleum, Inc. (OTC
BB: SKPI), an oil and gas exploration company, is pleased to provide
a drilling progress report. Crescent Petroleum Company International
Limited ("Crescent"), the operator of the Mubarek Field, reports that
as of March 4th the well was at a drill depth of 8,396 ft. Drilling
operations commenced January 31st at the Mubarek H-2, the first of
Sky Petroleum's two infill wells on the field.

The company also reports that it has recently completed a $3.5
million funding for costs related to the drilling program and has
paid $21.5 million in total. As part of the drilling program Sky
Petroleum is obligated to pay approximately US$25 million in drilling
costs related to the two wells in the Mubarek oil and gas field. The
final balance of $3.5 million will be made at the end of March 2006.
Currently the company has approximately $11 million in cash on hand
and has more than enough funds to finance its drilling obligations as
well as working capital for 2006 and beyond.

"We continue to be very pleased with the drilling program and look
forward to actual results," said Brent Kinney, chief executive
officer at Sky Petroleum, Inc. "We will be providing additional
updates as operations continue."

Crescent is one of the United Arab Emirates most established and
successful, integrated low-cost operators with over 30 years of
extensive experience in the region. As operator of the Mubarek Field
for over three decades, Crescent brings extensive knowledge of the
subsurface conditions of the Mubarek Field. The first commercial oil
was produced from the Mubarek Field in the mid 1970s and the field
has been in continuous production since then.

About Sky Petroleum

Sky Petroleum (OTC BB: 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, involve certain risks and
uncertainties that could cause actual results to differ. Potential
risks and uncertainties include, but are not limited to, the timing
and success of the proposed infill drilling programs, the
contemplated continued production at the Mubarek Field, and
anticipated production from the wells, if any, 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.
Investor Contact:
Michael Noonan
512-687-3427
mnoonan@skypete.com

Media Contact:
Clint Woods
713-627-2223
cwoods@piercom.com
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