AUSTIN, Texas--(BUSINESS WIRE)--Oct. 4, 2007--Sky Petroleum, Inc.
(OTCBB:SKPI), an oil and gas exploration company, is pleased to provide an
update on the testing program regarding the Mubarek K2-ST4 well located in the
Mubarek Field, offshore United Arab Emirates.
Crescent Petroleum Company International Limited ("Crescent"), the operator
of the Mubarek Field, reports that the well was drilled to a total depth of
13,528 feet into the Ilam oil reservoir, and has subsequently been stimulated
with acid and put on production with gas lift from the Ilam reservoir. After
initial tests, the well was flowing at 742 BOPD (Barrels of Oil per Day). The
well will be observed in order to optimize production conditions.
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. On completion
of the two obligation wells a further well development program will be
evaluated.
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 well, 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 timing for completing the second obligation well, 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.
Additional discussion of these and other risk factors affecting the company's
business and prospects is contained in the company's periodic filings with the
SEC. |
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