Sky Petroleum to Receive $1.1 Million From Mubarek Well Production

More Than 62,000 Barrels of Oil Produced as of the End of December
2006
 
AUSTIN, TX -- (MARKET WIRE) -- January 09, 2007 -- Sky Petroleum,
Inc. (OTCBB: SKPI), an oil and gas company, is pleased to announce
the company will receive USD 1,140,470 from its second allocation of
production revenue from the Mubarek H2 well. This revenue will be
received by the end of January 2007, or approximately 40 days from
the second lifting of crude from the H2 well, which occurred on
December 16, 2006. The H2 well has produced 62,212 barrels of oil as
at December 30, 2006 since it went into production on May 16, 2006.
 
Sky Petroleum was advised on January 4, 2007 by Crescent Petroleum
Company International Limited ("Crescent"), the operator of the
Mubarak Field, that the jackup rig under contract to drill the second
obligation well pursuant to the Participation Agreement will not
arrive until the second quarter of 2007. The Rani Woro jackup rig,
currently drilling for another operator in the region, is not
expected to be released from its current obligations, due to
operational delays with the current operator. Sky Petroleum has been
further advised that the jackup rig, when released from its current
obligations, will go to dry dock for maintenance and inspection in
order to retain its maritime class certificate. These delays mean
that the second obligation well, designated Mubarek K2-ST3, will not
spud until the second quarter of 2007.
 
"It is unfortunate that these events have interrupted our drilling
program, however these delays are completely out of either Crescent's
or Sky's control and despite these setbacks we continue to be very
pleased with the overall potential of the Mubarek infill drilling
program," said Brent Kinney, chief executive officer at Sky
Petroleum, Inc. "On a positive note, when we receive the revenue from
the second lifting we will have collected more than USD 1.7 million
in proceeds from the H2 well."
 
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