(Investrend Research Syndicate) Ernest Schlotter an oil
and gas analyst with Investrend Research Affiliate SISM Research and a
four star analyst according StarMine, has reiterated his Speculative
Buy/4 rating for Sky Petroleum, Inc. (OTCBB: SKPI). and maintained his
12-month price of $4.20.
According to SISM's Research Note:
Sky Petroleum, an emerging exploration and development player, commenced its infill-drilling program, aimed at boosting producing in the Mubarek Oil Field in the United Arab Emirates. Its Mubarek H-2 well is the first well drilled and is currently being logged and tested.
Tie-in of the well to production facilities is expected within the next thirty days and the company should become cash flow positive next quarter.
The second well to be drilled by the company should be completed by the end of 2006, and importantly, drilling costs related to the two wells in the Mubarek oil and gas field have been fully paid; Sky has sufficient working capital for 2006 and beyond. In 2007, Sky Petroleum intends to drill an additional four wells, bringing total production in 2008 to more than 9,000 barrels per day.
Sky Petroleum's participation agreement in two low risk Ilam/Mishrif development drilling programs, as well as an option of drilling four more wells could yield more than eleven million barrels of proven reserves net to the company within the next eighteen months and increase the company's NAV to over $140 million. More than 100 million barrels of oil have been produced since 1974, and the recovery rate has yielded between one and twenty-two million barrels per well.
Sky Petroleum will pay SISM Research $1,750 per month over a one-year period solely to ensure independent coverage.
SISM Research, based in Zurich, Switzerland, is a private investment research firm offering high-quality, independent, fundamental research on public companies since 1995. SISM writes, publishes and distributes research coverage, in both English and German, on small-cap public companies trading on the OTCBB, NASDAQ and AMEX.
This coverage is geared toward institutional and individual investors in both North America and in German-speaking Europe, a market that represents more than 100 million people. SISM Research is a content provider to Thomson Financials OneAnalytics/FirstCall and Investext, to Reuters Multex, Integrity Research Associates and Investrend.
Both SISM Research and Investrend Research subscribe to the "Standards for Independent Research Providers." Complete information is available at the company's InvestorPower page at http://www.investrend.com/company/list.asp?sPathParam=yes. Investors are advised to read disclosures carefully before trading in the equities of any enrolled company.
The company's research will be enrolled for investor monitoring by the Shareholders Research Alliance (http://www.shareholdersresearch.com
Anyone interested in receiving alerts regarding Sky Petroleum research should email contact@investrend.com with "SKPI" in the subject line.
According to SISM's Research Note:
Sky Petroleum, an emerging exploration and development player, commenced its infill-drilling program, aimed at boosting producing in the Mubarek Oil Field in the United Arab Emirates. Its Mubarek H-2 well is the first well drilled and is currently being logged and tested.
Tie-in of the well to production facilities is expected within the next thirty days and the company should become cash flow positive next quarter.
The second well to be drilled by the company should be completed by the end of 2006, and importantly, drilling costs related to the two wells in the Mubarek oil and gas field have been fully paid; Sky has sufficient working capital for 2006 and beyond. In 2007, Sky Petroleum intends to drill an additional four wells, bringing total production in 2008 to more than 9,000 barrels per day.
Sky Petroleum's participation agreement in two low risk Ilam/Mishrif development drilling programs, as well as an option of drilling four more wells could yield more than eleven million barrels of proven reserves net to the company within the next eighteen months and increase the company's NAV to over $140 million. More than 100 million barrels of oil have been produced since 1974, and the recovery rate has yielded between one and twenty-two million barrels per well.
Sky Petroleum will pay SISM Research $1,750 per month over a one-year period solely to ensure independent coverage.
SISM Research, based in Zurich, Switzerland, is a private investment research firm offering high-quality, independent, fundamental research on public companies since 1995. SISM writes, publishes and distributes research coverage, in both English and German, on small-cap public companies trading on the OTCBB, NASDAQ and AMEX.
This coverage is geared toward institutional and individual investors in both North America and in German-speaking Europe, a market that represents more than 100 million people. SISM Research is a content provider to Thomson Financials OneAnalytics/FirstCall and Investext, to Reuters Multex, Integrity Research Associates and Investrend.
Both SISM Research and Investrend Research subscribe to the "Standards for Independent Research Providers." Complete information is available at the company's InvestorPower page at http://www.investrend.com/company/list.asp?sPathParam=yes. Investors are advised to read disclosures carefully before trading in the equities of any enrolled company.
The company's research will be enrolled for investor monitoring by the Shareholders Research Alliance (http://www.shareholdersresearch.com
Anyone interested in receiving alerts regarding Sky Petroleum research should email contact@investrend.com with "SKPI" in the subject line.
