Replies to post #47 on Sky Petroleum (SKPI)

[OilStockReport]

It has an interesting balance sheet and I think the right combination of developments could yield a return here worth serious consideration. However I must say I am not a fan of international oil projects outside of Canada.

Here is an excerpt from last year:

Overview and Plan of Operation


Our primary business is to identify opportunities to either make direct property acquisitions or to fund exploration or development of oil and natural gas properties of others under arrangements in which we will finance the costs in exchange for interests in the oil or natural gas revenue generated by the properties. Such arrangements are commonly referred to as farm-ins to us, or farm-outs by the property owners farming out to us. We may also make investments or acquire other energy related projects or businesses.


We were incorporated in the state of Nevada in August, 2002 as The Flower Valet. In 2004, we began to reassess our business plan and to seek business opportunities in other industries, including the oil and gas industry. On December 20, 2004, at our annual meeting of stockholders, our stockholders approved an amendment to our Articles of Incorporation, changing our name from The Flower Valet to Seaside Exploration, Inc. Subsequently, on March 28, 2005, we changed our name from Seaside Exploration, Inc. to Sky Petroleum, Inc. and began actively identifying opportunities to make direct property acquisitions and to fund exploration and development of oil and natural gas properties.


On June 24, 2010, Sky Petroleum executed a Production Sharing Contract (“PSC”), covering three exploration blocks; Four, Five, and Dumre in the Republic of Albania. The main terms and conditions of the PSC for Block’s Four, Five, and Dumre had been negotiated previously by the National Agency of Natural Resources of Albania (“AKBN”). Sky Petroleum is complying with its obligations under the PSC in accordance with directions from AKBN.


Sky Petroleum has been granted exclusive rights under the PSC to these three exploration blocks totaling approximately 5,000 km2 (1.2 million acres), representing approximately 20% of the landmass of Albania. In addition to the exploration rights, the Company will also have access to more than 1,200 km of 2-D seismic data.


The internal data and previous 2D seismic work on these blocks has identified ten prospects or exploration leads covering approximately 435 km2 and believed to contain recoverable hydrocarbons, from the deep carbonate trends.


The Company entered into the PSC with the intention of developing these blocks as the Albania area has estimated reserves in excess of nine billion barrels of oil.