Sky Petroleum Updates Testing Program on the Mubarek H2 Well

6/9/2006, 10:00 AM (Source: GlobeNewswire)
Further Evaluation Underway to Stabilize Well; H2 Currently Generating Revenue of $200K per Month

AUSTIN, TX -- (MARKET WIRE) -- 06/09/2006 -- Sky Petroleum, Inc.
(OTCBB: SKPI), an oil and gas company with a development project in
the United Arab Emirates, is pleased to provide an update on the
testing program regarding the Mubarek H2 well. Crescent Petroleum
Company International Limited ("Crescent"), the operator of the
Mubarek Field, reports that the well was perforated over 6 zones
totaling 129 feet, as two separate tests. The lowest zone was
perforated over a 27 foot interval which proved to be water bearing
and was sealed off. The second test comprised perforations over 5
zones totaling 102 feet. Testing of this second interval is
continuing through the field production facilities.

The well continues to flow in an unstable manner with a high water
cut making accurate measurements difficult due to surging of the
well. However during periods when the well was flowing in a stable
fashion, rates of 168 BOPD and 2259 BWPD were recorded. Further
evaluation is underway to investigate methods of shutting off zones
which are producing water and carrying out additional stimulation of
the zones producing oil. This will include running production logging
tools in the well. Depending on results, further acidizing of the
well may be involved.

"We are pleased that we are generating revenues, however further
evaluation is required on the H2 well in order to stabilize
production," said Brent Kinney, chief executive officer of Sky
Petroleum, Inc.

Assuming a production rate of 168 BOPD and the current Mubarek crude
price of US$65 per barrel, the net forecast monthly revenue to Sky
under the terms of the Participation Agreement, after deduction of
royalties and operating costs, will be approximately USD $200,000 per
month.

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 1970's and the field
has been in continuous production since then.

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, involve certain risks and
uncertainties that could cause actual results to differ. Potential
risks and uncertainties include, but are not limited to, the ability
to stabilize the surging of the well, the ability to shut off zones
which are producing water, the ability to carry out additional
stimulation of the zones producing oil, the accuracy of estimated
production rates and the price of crude oil, the accuracy of
operating costs and monthly revenue forecasts, the timing and success
of other proposed infill drilling programs, the contemplated
continued production at the Mubarek Field, 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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