Sky Petroleum Updates K2-ST4 Status

Sky Petroleum is providing an update from Crescent Petroleum Company International Limited, the operator of the Mubarek field in the United Arab Emirates, on the status of the K2-ST4 well. On June 18, 2008 the K2-ST4 well was shut in to inspect and repair the flexible gas lift line between the J and K platforms. In early August, while pressure testing the initial repair, Crescent determined the line had suffered a failure. Subsequent diving and surface inspection confirmed the line had been damaged beyond repair.

Crescent is in the process of evaluating options to replace the line and will report the results of that investigation to the company shortly. Crescent is currently considering several options including a conventional steel line or a lightweight, flexible, non-metallic pipe. Crescent estimates that repairs to the line will take four to five months to complete.


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