Sky Petroleum Doubles Production From First Mubarek Well

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



130% Increase in Production to 461 BOPD From 200 BOPD

AUSTIN, TX -- (MARKET WIRE) -- October 11, 2006 -- Sky Petroleum,
Inc. (OTCBB: SKPI), an oil and gas company with a development project
in the United Arab Emirates, announces the recent work on the Mubarek
H2 well has resulted in a substantial 130% increase in production
from the H2 well.

Crescent Petroleum Company International Limited ("Crescent"), the
operator of the Mubarek Field, and Sky Petroleum, report that the
Memory Production "MPLT" log run on August 11, 2006 indicated one
zone was contributing significant water and no oil. A wireline crew
was mobilized to the field and a retrievable bridge plug was set.
Adjustments were also made to the gas lift system. The well was put
back into production on September 26, 2006. Currently Crescent is
still optimizing the gas lift injection rate however the initial H2
production rate after the recent work was 461 BOPD and 2162 BWPD.

"We are very pleased with the significant increase in H2 production
which shows the potential of the Mubarek project," said Brent Kinney,
chief executive officer of Sky Petroleum, Inc. "With respect to the
second well, we expect the drilling rig to arrive at the platform in
mid November."

Mubarek Field Program

The Participation Agreement with Crescent gives Sky Petroleum the
right to participate in a share of the future production revenue by
contributing up to $25 million in drilling and completion costs
related to two obligation wells in the Mubarek Field, offshore United
Arab Emirates. The $25 million commitment for both wells was fully
paid by the end of the first quarter of 2006. It is anticipated that
the second obligation well, which will spud in the fourth quarter of
2006 will be completed within 45 days. On completion of the two
obligation wells a further well development program will be
evaluated. Sky Petroleum believes that there is potential for
additional wells to be drilled and anticipates production from these
wells to commence in late 2007 or 2008 subject to a positive
evaluation and rig availability.

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.



Contact:
Michael Noonan
512-687-3427
mnoonan@skypete.com


Copyright GlobeNewswire, Inc. 2016. All rights reserved.
You can register yourself on the website to receive press releases directly via e-mail to your own e-mail account.