Crescent Petroleum Begins Producing from Mubarek K2-ST4

Sky Petroleum says that the Mubarek K2-ST4 well located in the Mubarek Field, offshore United Arab Emirates, in which Cresent Petroleum is the operator, was drilled to a total depth of 13,528 feet into the Ilam oil reservoir, and has subsequently been stimulated with acid and put on production with gas lift from the Ilam reservoir. After initial tests, the well was flowing at 742 BOPD (Barrels of Oil per Day). The well will be observed in order to optimize production conditions.

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. On completion of the two obligation wells a further well development program will be evaluated.

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.