THE CORPORATION
Sky Petroleum, Inc. is an emerging oil and gas company investing in international exploration and development activities. Sky Petroleum's core management and technical team comprise proven oil and gas professionals with extensive international experience in all aspects of exploration, operations and capital markets. The Company's shares trade on the OTC Bulletin Board in the United States under the symbol SKPI.OB. The Company has entered into a Participation Agreement in an offshore producing region in the United Arab Emirates (UAE) with Buttes Gas and Oil Co. International Inc, ("Buttes"), an operator with 30 years experience in the area. PROJECT HIGHLIGHTS
These projects present strong potential returns on investment thanks to prolific oil reserves in the area and an experienced management team: - Two immediate opportunities in the UAE: The Mubarek Field and Sir Abu Nu'Ayr Island Project.
- Medium risk drill-ready prospects in the existing Mubarek oil field.- potential for untapped reserves
- Potential high impact opportunity in Sir Abu Nu'Ayr Island prospect
- Operating in a stable political region (UAE).
- Excellent projected returns
- Opportunities for production within 12 months
- Low production costs at Mubarek Field.
- Buttes will operate the Mubarek Field drilling program.
Sky Petroleum's team has the technical experience to manage the projects at hand and the right network to create opportunities, coupled with proven experience at raising capital. The Mubarek Field requires a funding commitment of $25 million to drill two wells within the next six months. Sky Petroleum has raised more than $37 million to date and now has enough capital to fund the Mubarek Development Project and working capital requirements for 2006. With its initial project at Mubarek, Sky Petroleum has the opportunity to show positive cash flow within 12 months. Sky Petroleum also has an opportunity to participate in a high impact exploration play at Sir Abu Nu'Ayr, in one of the most prolific hydrocarbon regions in the Middle East. STRATEGY & BUSINESS PLAN
Sky Petroleum's strategy will focus on producing or near-production opportunities in the Middle East and North Africa, seeking niche opportunities through key partnerships in the region, and working with proven operators. Core strategies include strategic partnerships with proven regional operators, managing the ratio of low risk and high risk / high reward projects, sharing risk through joint-ventures and partnerships, selective production acquisitions, and maintaining a strong financial base and sustainable operations. Through its sustainable approach of continuing to expand its production and drilling prospects, Sky Petroleum will continue to grow as a public company. Business Plan
Sky Petroleum's current business plan will be to develop a sustainable oil and gas company specializing in the Middle East and North Africa. Sky will explore opportunities to increase reserves and production and to enter joint ventures or farm-in opportunities which are too small for major oil companies. UNITED ARAB EMIRATES PROJECTS
Sky has entered into an agreement to participate in a project in the Mubarek Field, and has right of first refusal with respect to the future development of the Sir Abu Nu'ayr Island concession area. These two projects offer the potential for near-term production and potentially, with Sir Abu Nu'Ayr, a major hydrocarbon discovery. | Project | History | Development Opportunities | | Mubarek Field | - Sky has rights on Ilam/Mishrif light oil reservoir
- Ilam/Mishrif is one of two producing intervals
- Producing since 1974
- Peak production: 60,000 barrels of oil per day
- Individual well production up to 22 million barrels
| - A commitment to drill two wells with a total cost of $25 million
- Drilling & completion of the first well planned for Q4 2005 or Q1 2006
- Second well for Q2 2006
- Potential for up to four additional wells - could start producing in 2007
| | Sir Abu Nu'Ayr Island | - Right of first refusal
- Salt dome hydrocarbon plays (as is found in other oil-producing regions)
| - Able to pursue after the initial well development and production initiatives on the Mubarek Field
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United Arab Emirate Projects 
PROJECTIONS
Based on the assumption that all six wells will be successful, Sky projects an anticipated projected rate of return in excess of 50%, with the payout on the initial two wells within approximately 15-18 months. With valuations based on a discounted cash flow model, discounted at 10%, several analysts have targeted the share value to be in a range of $2.75 to more than $4.00 per share.
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