Dutton Associates Announces Investment Opinion: Sky Petroleum Maintained At Strong Speculative Buy Rating By Dutton Associates

Business Wire, August 28, 2006

EL DORADO HILLS, Calif. -- Dutton Associates updates its coverage of Sky Petroleum (OTCBB:SKPI) maintaining a strong speculative buy rating and a 12 month price target of $2.35. The 9-page report by Dutton senior analyst Richard R. Wolfe, CFA is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals. E[acute accent]Sky Petroleum Inc. (Sky) reported second-quarter 2006 results on August 15, 2006. Based on Sky's second-quarter report and recently released flow rates for Sky's initial well, we have reduced our earnings and cash flow estimates. Our new estimates indicate a lower valuation per share; accordingly, we have reduced our price target to $2.35 per share from $2.70. Sky is a development-stage company that has completed the first well of a two-well drilling obligation pursuant to an oil and gas participation agreement in the Mubarek Field offshore the United Arab Emirates (UAE). Drilling of the first of two fully paid-for development wells has been concluded by Crescent Petroleum Company International Limited (Crescent), the operator of the Mubarek Field, and at last report (July 26), Crescent was engaged in well monitoring and control efforts aimed at boosting lower-than-expected initial flow rates. We remain positive on Sky's prospects and believe that it would be premature to revise our expectations of the Mubarek drilling program. We have reset our target price down to $2.35 per share (prior target: $2.70 per share) to reflect conclusions drawn from our cash-flow projections. Our rating of Strong Speculative Buy is unchanged and reflects the 100% upside potential of our target price.

E[acute accent]About Dutton Associates

E[acute accent]Dutton Associates is one of the largest independent investment research firms in the U.S. Its 31 senior analysts are primarily CFAs and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors. E[acute accent]The cost of enrollment in our one-year continuing research program is US $39,500 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $35,000 from the Company for 4 Research Reports with coverage commencing on 11/17/2005. We do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.