Sky Petroleum Announces a $15.6 Million Private Placement
Sky Petroleum's original goals were to raise $35 million; however, the company has raised more than $37 million to date.
"We are very pleased with the confidence investors are showing in Sky Petroleum and the Mubarek development project," said Brent Kinney, chief executive officer at Sky Petroleum, Inc. "Sky Petroleum now has sufficient cash on hand to complete its funding obligations under the Participation Agreement and satisfy working capital requirements for 2006, thus we decided to close the placement early."
On May 18, 2005, Sky Petroleum announced that it's wholly owned subsidiary Sastaro Limited ("Sastaro") had entered into a Participation Agreement with United Arab Emirates-based Buttes Gas and Oil Co. International Inc. ("BGOI"), a wholly owned subsidiary of Crescent Petroleum Company International Limited ("Crescent"). As part of the agreement Sastaro is obligated to pay all drilling costs related to two wells in the Mubarek field to a maximum of US$25 million. To date, the company has paid $14.5 million as per the Participation Agreement schedule. The final balance of $10.5 million will be due when the first well is spudded and will be made in three equal payments over a period of several months.
The alliance with BGOI and 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 established operators in the Mubarek oil and gas field for over three decades, BGOI and Crescent bring extensive knowledge of the geological formations and reservoir potential of the Mubarek Field.
Mubarek Development Project
The first commercial oil was produced from the Mubarek Field in the mid 1970's, marking the beginning of over three decades of continuous production. The Mubarek Field production facilities have the capacity to process 60,000 barrels of oil per day and currently have excess capacity. The company expects the first phase of a proposed two phase infill drilling program to commence early 2006.
About Sky Petroleum
Sky Petroleum (SKPI.OB) 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 is also considering some higher risk, higher reward exploration prospects.
- Blockchain Demands Attention in Oil and Gas
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- CNPC Opens Sea-Land Oil Storage and Transport Facility in Bangladesh
- Oman Sees Increasing Ship-to-Ship Transfers of Russian Oil Bound for India
- US Govt Makes Record Investment of $6B for Industrial Decarbonization
- Perenco Still Searching for Missing Person After Platform Incident
- Eni, Fincantieri, RINA Ink Deal on Maritime Decarbonization
- Oil Falls as US Inventories Increase
- Czech Utility CEZ Bucks Weaker Prices, Demand to Log Record Annual Profit
- Ithaca Energy Studies Deal for Eni's UK Upstream Assets
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call
- India Halts Russia Oil Supplies From Sanctioned Tanker Giant
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Centcom, Dryad Outline Recent Moves Around Red Sea Region
- PetroChina Set to Receive Venezuelan Oil
- Czech Conglomerate to Buy Major Stake in Gasnet for $917MM
- US DOE Offers $44MM in Funding to Boost Clean Power Distribution
- Oil Settles Lower as Stronger Dollar Offsets Tighter Market
- UK Grid Operator Receives Aid to Advance Rural Decarbonization
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call