Sky Petroleum opens new office in Albania

Sky Petroleum, Inc., an oil and gas company, has opened a new office in Albania.

Located in the Sky Tower, Tirana, Albania, the office will focus on the development of the Production Sharing Contract, or PSC, with respect to the three exploration blocks, Four, Five and Dumre, previously announced on June 24, 2010. "We are delighted to be opening our office in Tirana, as a first step in establishing operations for our project in Albania," stated Karim Jobanputra,

Sky Petroleum's CEO. "As we move forward on the many issues related to the exploration blocks, we expect to announce additional operational developments in the near future." The PSC has a seven-year term with three exploration periods. Upon commercial discovery of gas, the agreement allows for development and production periods of 25 years plus extensions at the company's option.

Block Four is located in southeast Albania, bordering on Greece; Block Five is located in southwest Albania next to the Adriatic Sea; and Block Dumre is located immediately north of the Kucova oil field. Based on analogous discoveries, it is believed that the prospects contain significant hydrocarbons.