Oil and gas company Sky Petroleum Inc. announced today that it will get $1.1 million in production revenue from its stake in the Mubarek H2 well.
The company expects to receive the second allocation of revenue by the end of January, or roughly 40 days from the second lifting of crude from the H2 well. The site had produced more than 62,000 barrels of oil as of Dec. 30 since it went into production on May 16 of last year.
Sky Petroleum also received notice from the operator of Mubarek field, Crescent Petroleum Company International Ltd., that the jackup rig under contract to drill the second well will not arrive until the second quarter of 2007 because of an ongoing commitment at another site.
“It is unfortunate that these events have interrupted our drilling program, however these delays are completely out of either Crescent’s or Sky’s control and despite these setbacks we continue to be very pleased with the overall potential of the Mubarek infill drilling program,” says Brent Kinney, CEO of Sky Petroleum. Kinney says on a positive note, once the new round of revenue is received, Sky will have collected more than $1.7 million in proceeds from the H2 well.
Sky Petroleum (OTC BB: SKPI) is an oil and natural gas exploration company with offices in Austin, Canada and the United Arab Emirates.