Dutton Associates Raises Sky Petroleum Price Target to $3.90

4/10/2006, 11:00 AM (Source: GlobeNewswire)

AUSTIN, TX -- (MARKET WIRE) -- 04/10/06 -- Sky Petroleum, Inc. (OTC
BB: SKPI), an oil and gas exploration company, is pleased to announce
that on April 6, 2006, Richard R. Wolfe, CFA of Dutton Associates,
reiterated his Buy rating and raised his target price to $3.90.

The following is from the Research Note:

"Based on our review of Sky Petroleum's recently filed annual report
on Form 10-K for the year ended December 31, 2005, we are raising our
target price on SKPI shares. The new target price is $3.90 and
reflects accumulating evidence from SKPI's ongoing drilling program
in the Mubarek Field offshore United Arab Emirates. We now believe
that
our base-case scenario for Mubarek productivity deserves to be
assigned a higher probability, and the effect, in our earnings/cash
flow model, is to push our estimate of the company's valuation
substantially higher (using a combination of cash-flow based and
asset-value based valuation methods). We arrive at a median figure
for valuation per common share of $3.90, and accordingly, we have set
that figure ($3.90 per share) as our new target price for SKPI
shares. The new target price is 22% higher than the most recent close
(April 5, 2006) of $3.19 per share, and we therefore reaffirm our BUY
rating on the shares."

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

About Dutton Associates

Dutton Associates, an international issuer-paid equity research firm,
offers independent, fundamental research on over 120 small cap public
companies. The company's 29 analysts are primarily CFA
charterholders with, on average, over 20 years of experience at the
major securities firms. For more information, visit
www.jmdutton.com.
Contact:
Michael Noonan
512-437-2582
mnoonan@skypete.com

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