Crescent Petroleum Doubles Production from First Mubarek Well

Sky Petroleum

Crescent Petroleum says the recent work on the Mubarek H2 well has resulted in a substantial 130% increase in production from the H2 well.

Crescent Petroleum Company International Limited, the operator of the Mubarek Field, and Sky Petroleum, report that the Memory Production "MPLT" log run on August 11, 2006 indicated one zone was contributing significant water and no oil. A wireline crew was mobilized to the field and a retrievable bridge plug was set. Adjustments were also made to the gas lift system. The well was put back into production on September 26, 2006. Currently Crescent is still optimizing the gas lift injection rate however the initial H2 production rate after the recent work was 461 BOPD and 2162 BWPD.

"We are very pleased with the significant increase in H2 production which shows the potential of the Mubarek project," said Brent Kinney, chief executive officer of Sky Petroleum, Inc. "With respect to the second well, we expect the drilling rig to arrive at the platform in mid November."

Mubarek Field Program

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.