Sky Petroleum, Inc. provided a drilling progress report on the Mubarek H-2 well. Crescent Petroleum Company International Limited, the operator of the Mubarek Field, reports that as of March 24th the well was at a drilled depth of 13,845 ft, just above the Ilam/Mishrif reservoir. The well has been cased at this depth and over the coming weeks the well will be drilled to a total depth of approximately 15,000 ft. The well will then be logged and completed prior to testing and tying in to the Mubarek Field production facilities. Production is expected to begin by mid-May 2006. Drilling operations commenced January 31st at the Mubarek H-2, the first of Sky Petroleum's participation in two infill wells on the field.
The company also reports that it has recently completed the final $3.5 million funding and has now fully paid USD $25 million in drilling costs related to the two wells in the Mubarek oil and gas field. Currently the company has approximately $7.5 million in cash on hand and has more than enough funds to finance its drilling obligations as well as working capital for 2006 and beyond.