Sky Petroleum Announces 25,000 Barrels of Oil Produced

Sky Petroleum, Inc. (OTCBB: SKPI), an oil and gas company with a development project in the United Arab Emirates, is pleased to announce that as of September 30, 2006, the Mubarek H2 well has produced 24,998 barrels of oil since it went into production on May 16, 2006. The company also announces that it will receive USD 588,356.00 from its first allocation of production revenue from the H2 well. The proceeds represent the sale of 15,873 barrels of oil net to Sky Petroleum at a net back to the wellhead price of USD 61.59 per barrel. The revenue will be received in mid-October 2006, or approximately 40 days from the first lifting of crude from the H2 well, which occurred on September 11, 2006. As of September 30, 2006, 9,125 barrels of oil net to Sky Petroleum were on the storage vessel Mubaraka.