Drilling Rig Expected to Return to the Mubarek Field in Early November

Rigzone.com, Sky Petroleum 9/19/2006 --- Sky Petroleum and Crescent Petroleum Company International Limited, the operator of the Mubarek Field, announce that the Rani Woro jackup rig, currently drilling for another operator, is expected to return to the field around November 1, 2006. This date is approximately 45 days later than originally anticipated due to operational delays with the current operator. Earlier this year, Crescent signed a contract with P.T. Apexindo Pratama Duta Tbk, to drill the two obligation wells using the Rani Woro jackup rig. The Rani Woro can operate to a water depth of 350 feet and has a 25,000 foot drilling capacity.

As announced on July 26, 2006 Sky Petroleum and Crescent have agreed on a second well location to be drilled to the Ilam/Mishrif reservoir. The data from the first well, Mubarek H2, allowed an up to date assessment of the factors affecting reservoir performance in this mature field which indicated that the proposed J3 location should be reconsidered. The second well, designated Mubarek K2-ST3, will now be drilled on the northwest of the field proximal to the Mubarek K1 well location. K1 was drilled as Thamama producer (a deeper gas condensate reservoir underlying the Ilam/Mishrif) and electric log readings over the Ilam/Mishrif section indicate good oil saturated reservoir.

Crescent has also continued evaluating the H2 well. Following a review of the results of the Memory Production "MPLT" data, Crescent plans to carry out wireline work on the H2 well within the coming weeks. The objective will be to set a bridge plug to isolate perforations which appear to be producing water and no oil. In addition the planned alterations to the gas lift system in the well are anticipated to enable an increase in oil production from the well. After observing the well's performance as a result of this configuration change Crescent will evaluate whether a re-stimulation program of the zones in the Ilam section should be carried out. During August the oil production from the H2 well averaged approximately 200 bopd with an average water cut of 90%.

"We continue to generate revenues of approximately $200,000 per month and believe we will see improved income from the Mubarek Field when both wells are on production," said Brent Kinney, chief executive officer of Sky Petroleum, Inc. "We are also continuing to look at other oil and gas opportunities that will add shareholder value."

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.

Sky Petroleum Hires Rig for Work in Mubarek Field

Rigzone.com, Sky Petroleum 1/18/2006 --- Sky Petroleum says that Buttes Gas and Oil Co. International, the operator of the Mubarak Field, has signed a contract with P.T. Apexindo Pratama Duta Tbk, to drill the first of two obligation wells using the Rani Woro jackup. The Rani Woro can operate to a water depth of 350 feet and has a 25,000 foot drilling capacity. The company expects BGOI to begin initial drilling operations prior to the end of January 2006.

Last May, Sky Petroleum's wholly owned subsidiary, Sastaro Limited entered into a Participation Agreement with BGOI, a wholly owned subsidiary of Crescent Petroleum Company International Limited, allowing Sky Petroleum to participate in two wells in the Mubarek Field, located in the United Arab Emirates.

BGOI estimates that the first well, Mubarak H-2, will take approximately 75 days to complete and results are anticipated prior to the end of April 2006. The rig will then be moved off location to another operator for one well and subject to the terms of the Agreement, will return to the Mubarak Field in approximately six months to drill and complete the Mubarak J-3 well. Sky Petroleum expects the second obligation well will be completed prior to the end of 2006.

The target locations for the infill wells to be drilled to the Ilam/Mishrif reservoir in the Mubarek Field were selected last September. The wells will be drilled from existing platforms into the Ilam/Mishrif oil reservoir. The H-2 and J-3 wells target locations are located approximately one kilometer from wells which have produced oil from the Ilam/Mishrif. The field has complete 3D seismic coverage and extensive production and export infrastructure already in place with adequate capacity to process production from the two new wells.

"We are very pleased that this critical step in securing a rig has been completed by BGOI despite the tight supply of equipment," said Brent Kinney, chief executive officer at Sky Petroleum, Inc. "We are very excited about the potential of the Mubarek infill drilling program and look forward to results."

The alliance with BGOI, a wholly owned subsidiary of Crescent, unites Sky Petroleum with 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 Mubarak Field for over three decades, BGOI brings extensive knowledge of the subsurface conditions of the Mubarek Field. The first commercial oil was produced from the Mubarek Field in the mid 1970s and the field has been in continuous production since then.

Sky Petroleum (OTC BB: SKPI) is an oil and gas exploration and development 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.

Statoil Spuds First Well for South Pars Phases 6 - 8

Rigzone.com, Statoil 1/27/2004 --- The first well in phases six-eight of Iran's South Pars gas development in the Persian Gulf has been spudded by Statoil as operator for the offshore part of this project. Each of the 30 producers embraced by the program will be drilled to a measured length of about 4,000 meters.

The Rani Woro jackup arrived at the drilling location on January 25th and spudded the day after.

"That's initiated an important new phase in the South Pars development," says well manager Per Haaland in Statoil's project team.

Chartered by Statoil in 2003 for up to three years, Rani Woro is owned by Indonesia's PT Apexindo Pratama Duta in Jakarta.

Iran's Pars Oil & Gas Company (POGC), which is in overall charge of the whole South Pars development, has a five-year contract with Japan Drilling Company.

This covers the charter for Sagadrill 2, which is being chartered on to Statoil for up to three years.

The first of three jackets for the wellhead platforms covered by phases six-eight was installed on the field on January 5th, and the other two are currently being completed. Rune Mordal, project manager for platform construction, confirms that the second jacket is due to be transported to the field in late January or early February.

Sagadrill 2 is scheduled to spud its first well as soon as jacket number two has been installed.