Sky Petroleum Approaches Reservoir Depth

3/28/2006, 6:45 PM (Source: GlobeNewswire)
Casing Set Above Reservoir at Depth in Excess of 13,800 ft

AUSTIN, TX -- (MARKET WIRE) -- 03/28/2006 -- Sky Petroleum, Inc. (OTC
BB: SKPI), an oil and gas company with a development project in the
United Arab Emirates, is pleased to provide a drilling progress
report on the Mubarek H-2 well. Crescent Petroleum Company
International Limited ("Crescent"), the operator of the Mubarek
Field, reports that as of March 24th the well was at a drilled depth
of 13,845 ft, just above the Ilam/Mishrif reservoir. The well has
been cased at this depth and over the coming weeks the well will be
drilled to a total depth of approximately 15,000 ft. The well will
then be logged and completed prior to testing and tying in to the
Mubarek Field production facilities. Production is expected to begin
by mid-May 2006. Drilling operations commenced January 31st at the
Mubarek H-2, the first of Sky Petroleum's participation in two infill
wells on the field.

The company also reports that it has recently completed the final
$3.5 million funding and has now fully paid USD $25 million in
drilling costs related to the two wells in the Mubarek oil and gas
field. Currently the company has approximately $7.5 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 are very pleased we are approaching reservoir depth and look
forward to beginning production," said Brent Kinney, chief executive
officer at Sky Petroleum, Inc.

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

SOURCE: Sky Petroleum, Inc.
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