sky petroleum: exploration blocks in albania - summary

September 27, 2010

Sky Petroleum Inc. Exploration Blocks in AlbaniaSummary

1

Disclaimer

▪ This Presentation is a summary of Sky Petroleum Inc.’s Exploration Blocks in Albania and is for information purposes only. No investor should invest in the securities of Sky Petroleum based solely on the information contained in this Presentation. Before entering into any transaction directly or indirectly based on the information contained herein, recipients are advised to conduct their own investigation and analysis of Sky Petroleum and its project and the data contained in this Presentation in order to confirm the validity and accuracy of the said information. Information concerning Sky Petroleum, including risks related to its business and operations, are contained in Sky Petroleum’s filings with the Securities and Exchange Commission available at www.sec.gov (“SEC Filings”).

▪ This Presentation does not constitute an offer or invitation for the sale or purchase of securities or of any other asset, business or undertaking and shall not form the basis of any contract. No offer or sale of securities will be made in any jurisdiction unless registered under the Securities Act of 1933, as amended, and any applicable state securities laws or unless otherwise exempt from such registration requirements, and unless made in compliance with securities laws of applicable jurisdictions.

▪ Except for historical information, the matters set forth herein, which are forward-looking statements, involve certain risks and uncertainties that could cause actual results to differ. Certain factual information is derived from information provided by or otherwise reported by third-parties, which has not been confirmed or verified by Sky Petroleum. You are cautioned against relying on forward-looking statements or third-party information. Potential risks and uncertainties related to forward-looking statements include, but are not limited to, the reliability and accuracy of third-party information, obsolete technologies used in prior exploration programs, the ability to raise capital and fund exploration programs and working capital requirements, the ability to design and implement exploration and development programs in Albania on a timely basis, obtaining drilling equipment and exploration resources on a timely fashion, uncertainty of production from the wells, if any, the competitive environment within the oil and gas industry, the extent and cost effectiveness with which Sky Petroleum is able to implement exploration and development programs in the oil and gas industry, commodity price risk, general market acceptance, political risks associated with exploration and development activities, the successful technical and economic execution of Sky Petroleum’s intended exploration plan, risks related to the estimates and assumptions of management, risks related to valuation estimates, risks related to investments in penny stock and other risks and uncertainties disclosed in Sky Petroleum’s SEC Filings.

▪ Sky Petroleum has not made, does not make and will not make any representation or warranty, express or implied, as to the accuracy or completeness of information contained herein and none of them shall have any liability with respect to use of the information contained herein by their direct or indirect recipient or by any person to whom such information has been properly disclosed. Sky Petroleum does not undertake any obligation to update or publicly release any revisions to this Presentation to reflect events, circumstances or changes in expectations after the date of this Presentation.

http://www.sec.gov/�

2

Sky Petroleum introduction (1/2)

Corporate Profile Management and Board Members

Offices: Austin Texas & Dubai

OTC Bulletin Board: SKPI.OB

Operations

▪ Karim Jobanputra, CEO

▪ Michael Noonan, CFO Interim, VP Corporate, Corporate Secretary

▪ Robert Curt– Previously in ExxonMobil, Qatar Gas – Refining and Supply expert

▪ Oliver Whittle– Previously CEO of Raiffeisen Bank Albania,

Barclays Bank

▪ Albania: PSC signed for Blocks 4, 5 & Dumre

▪ U.A.E: Agreement for offshore Mubarek Field 1

▪ Russia Oil Field investment– Luzskoye field, Komi Republic of

the Russian Federation 1– Via Concorde Oil & Gas plc. 1

1 – investment impaired to zero as of 12/31/09

3

Sky Petroleum introduction (2/2)

Highlights

▪ US listed independent focused on the Balkans, Middle East and FSU

▪ Focused business model– Strategic focus on near production

opportunities– Low burn rate = positive cash flow– Positive cash on balance sheet – Relationships with proven operators

▪ Raised USD 38 million in 2005– Invested USD 25 million for Mubarek Project,

USD 1 million for Luzskoye– Approximately USD 5 million on balance

sheet (as of Q2 2010)

▪ Signed production sharing contract for 3 Blocks in Albania

▪ Experienced technical, operational, legal and financial capabilities

Trading Fundamentals

▪ Stock performance for the past 2 years, USD

▪ Share Capital– Issued and Outstanding – 59 M (as of 2Q10)

– Insiders and Institutions – approximately 25%

– No debt, convertibles or other derivatives

▪ Near-term catalysts for stock appreciation– Albanian reserve valuation and subsequent

production providing accretive cash flow– Mubarek participation agreement dispute

resolved– Capital appreciation from Concorde

001/201007/2008 07/201007/200901/2009 01/2011

0,2

0,4

0,6

0,8

SOURCE: Datastream

4

Contents

Basic description and unique characteristics

Exploration and development plan for the prospects

Economic value assessment of the prospects

Q & A

5

Basic description: in June 2010, we have been granted exclusive rights to 3 exploration blocks in Albania, covering 5,000 km2 (17% of Albania)

SOURCE: AKBN; Sky Petroleum

Onshore freeSky Petroleum

Capricorn Albania & Dyas Albania

Island International Exploration & Beach Energy

Manas Adriatic

Stream Oil and GasBankers Albania

Offshore free

Onshore licenses Offshore licenses

Sky Petroleum blocks

▪ Block 4– 2,264 km2 (540,000 acres) – 4 prospects– Estimated potential 350

MMBOE▪ Block 5

– 2,076 km2 (498,000 acres)– 5 prospects– Estimated potential 375

MMBOE▪ Dumre

– 623 km2 (149,000 acres)– Estimated potential >150

MMBOE

8

7

1

6

45

3

2

Dumre

E

DB

C

A

F

Kilometers

0 20

6

Basic description: our 10 prospects in Albania build on previous research of OMV and are located close to producing field and recent discoveries

SOURCE: AKBN; CIA; Manas Petroleum; OMV

Sky Petroleum block

Sky Petroleum prospect

Oil and gas in Albania

▪ Surface bitumen mined by Romans near Fier 2,000 years ago▪ Modern exploration in Albania began in 1918, but slowed down

during the communist era▪ Since 1991, Albania reopened attracting foreign exploration (Shell,

Occidental, OMV, …)▪ Three major players in Albania claim 22 billion barrels OOIP in their

blocks, but majority of potential not explored yet

Oil and gas in Sky Petroleum’s prospects

▪ OMV explored blocks 4 and 5 from 1998 till 2006– 1,265 km of 2D seismic data (238 km of new data by OMV)– Deep exploration wells with data in Palokastra and Kanina– Exploration discontinued due to relatively low oil price, cost

overruns and shift in regional focus▪ In June 2010, Sky Petroleum obtained exclusive license to continue

with exploration of blocks 4, 5, and Dumre▪ Our 10 prospects with 435 km2 total area, majority within 20-50 km of

producing fields, are estimated to contain ~900 MMBOE of predominantly oil reserves

Gas field

Oil field

Squepuri oil field discovered 2001

Delvina gas field (1.3 Tcf OOIP), largest in SE Europe) discovered 1988Kilometers

0 20

Manas Petroleum estimates 3,919 MMBOE of recoverable deposits (P90) in its blocks

Patos-Marinza(340 MMBOE) is the largest European onshore oil field

7

▪ Proposed AMBO oil pipeline▪ Capacity 0.8 Mbpd▪ Project currently on-hold

Geography: the prospects are located in proximity of existing and planned oil and gas infrastructure

SOURCE: AKBN; Energy Community; company websites; press search

Proposed oil Pipeline

Sky Petroleum blocks

Refinery

Tanker terminal

Proposedgas pipeline

Gas pipeline

Oil pipeline


▪ Proposed South-Stream gas pipeline (from Russia to Italy)

▪ Capacity 12 Bcm per year▪ Announced completion by 2015, start

date still not agreed upon▪ Most likely passing through Greece

very near south AlbaniaKilometers

0 20

Fier and Ballsh refineries ▪ Owned by ARMO (in 2008

privatized by Anica Enterprises and Mercuria Energy Group Ltd., and United States-based Refinery Associates of Texas)

▪ Capacity 33,000 barrels per day (currently not fully utilized)

Trans-Adriatic pipeline▪ 10-20 Bcm per year▪ Currently optimal route assessment

surveys ▪ Planned completion year unclear

▪ New 97 MW power near Vlore (oil, possible conversion to gas)

Porto Romano terminal▪ Modern (in operation since April

2009)▪ Owned by the government▪ Current storage capacity

– 20,000 m3 of oil– 10,000 m3 of LPG

▪ Loading/shipping capacity per day– 9,000 tones of LPG– 16,000 tones of oil

Vlora 1 port ▪ Storage capacity 65,500 m3

ARMO oil terminal▪ Storage capacity 30,000 m3

La Petrolifera Italo Albanese oil and gas terminal▪ Close to Italian refineries (120 km

to Brindisi, 200 km to Bari)▪ Connected to railway▪ Storage capacity 65,000 m3

8

History of exploration: significant exploration already done

471291

503

Block 5Block 4Dumre

SOURCE: AKBN; CIA

Sky Petroleum block

Oil seep

Gas discovery

Gas field

Gas condensate field

Oil field

Major thrusts


11

1213

Kilometers

0 20

1,265 km of existing 2D seismicKilometers

39

5

Block 5Block 4Dumre

751 explora-tory wells1

Number

1 Each block contains one deep well with full documentation and a number of shallower ones

99

Unique opportunity: previous Albpetrol, Premier Oil and OMV research concluded significant oil and gas deposits likely…

SOURCE: National Agency of Natural Resources; OMV final report

Dumre

Block 5

Albpetrol identified 2 prospects▪ Dumre▪ Belshi1

Albpetrol identified 5 prospects▪ Llogora▪ Kanina S.▪ Vurgu▪ Butrinti▪ Ramica

▪ 60 km2

▪ Large anticlinal carbonate structure

▪ Abundant, mature source ▪ Region is dominated by both

folding and piercement▪ Oil discoveries within 10 km

▪ 40 km2, over 10 km long structure

▪ 5 km from Vlora-10 and 11 producing wells

▪ Ionian Zone of Albanide fold▪ Original estimate 27% POS

Description

▪ ~500 km of low quality 2D seismic by Albpetrol and Premier Oil

▪ DUM-7 exploratory well 6,119 m, tested concept but missed target

▪ 136 km 2D seismic by OMV▪ KA-1/1 exploratory well by

OMV– 5,362 m, cost USD

37 million▪ Well evaluation▪ Magneto-telluric study

Research done

▪ Initial test well missed carbonates due to poor seismic imagining

▪ Top of carbonates location now estimated better based on well evaluation

▪ New seismic and well needed

Block 4

Albpetrol identified 4 prospects▪ Libohova▪ Konica▪ Palokastra▪ Tomorri

▪ 26 km2, on trend with producing fields NW

▪ Picari structure▪ OMV estimated 78 MMBOE of

reserves with 19% POS

▪ Good quality seismic (in a valley)– 42 km by Albpetrol– 69 km by OMV

▪ PK-1 exploratory well by OMV– 2,605 m– cost USD 7 million

▪ 150 m column with extensive shows of “dead” oil, structure may have been breached

▪ Porosity development is low, but extensive fracturing present

▪ Additional seismic needed to improve structural model

▪ 163 m column of high-density oil did not flow

▪ Low porosity and drilling difficulties made tests inconclusive

▪ Need to develop better structural model and redrill

ConclusionProspect

Further details and geological research on other prospects in the appendix (reserve potential and POS not estimated by OMV)

Block

1 Dumre prospect exploration may identify additional prospects including Belshi, but current data is not sufficient to consider Belshi a viable prospect

▪ 60 km2

▪ Large anticlinal carbonate structure

▪ Abundant, mature source ▪ Region is dominated by both

folding and piercement▪ Oil discoveries within 10 km

10

… and according to our estimates this potential may be even higher

SOURCE: Experts

Block 4

Block Prospect

Mean un-risked reserve potentialMMBOE

875

Ramica 50

Butrinti 75

Vurgu 75

Kanina South 75

Llogora 100

Tomorri 75

Palokastra 75

Konica 100

Libohava 100

Dumre 150

Block 5

Dumre

Total

12

15

7

7

25

15

18

14

12

10

135Total mean risked potential around 211 MMBOE

Exploratory well costUSD millionRationale

Low porosity, bad access

Far from existing production

Oil shows, appears breached

Far from existing production

Good source and seal, modest reservoir expected

Bad access (Cika Mountain)

Positive oil discovery nearby

Production nearby

Similar to Delvina, bad access

Close to producing fields

Probability of SuccessPercent

17

17

25

17

35

17

35

25

25

25

Target depthMeters

4,000

4,500

2,100

2,500

6,400

4,500

4,700

4,200

3,300

3,000

11

Analog fields: several analogs exist from previous exploration and development

SOURCE: AKBN; JS Herold; Wood Mackenzie; OMV

Sky Petroleum prospects

13

Kilometers

0 20

Kanina S.

LlogoraRamica

PalokastraTomorri

KonicaLibohova

Butrinti

Vurgu Delvina

Finiq-Krane

Gorisht-KoculAmonica

Ballsh-HekalDrashovice Cakrran-Mollaj

Frakulla

Seman-P.

Patos-Marinza

Kucove

Ballaj-Divjaka

Kolonja-B.Pekishti

Dumre

Sky Petroleum block

Gas field

Gas condensate field

Oil field


Butrinti▪ 75 MMBOE▪ 3,300m deep

Analog fields

Libohova▪ 100 MMBOE▪ 4,000m deep Cakrran-

Mollaj▪ 131 MMBOE▪ 3,000-4,500m

▪ Cret/Eoc.Carb▪ Since 1977

Dumre▪ 150 MMBOE▪ 6,400m deep

Ballsh-Hekal

▪ 46 MMBOE▪ 1,000-3,000m


Vurgu▪ 75 MMBOE▪ 4,200m deep

Patos-Marinza

▪ 385 MMBOE▪ 0-1,800m

▪ Mess-clastics▪ Since 1927

Ramica▪ 50 MMBOE▪ 3,000m deep Gorisht-

Kocul▪ 100 MMBOE▪ 1,000-2,500m


Kanina South

▪ 75 MMBOE▪ 4,700m deep Kucove

▪ 49 MMBOE▪ 0-1,500m

▪ Mess-clastics▪ Since 1928

Konica▪ 100 MMBOE▪ 4,500m deep Visoka

▪ 42 MMBOE▪ 800-1,000m


Llogora▪ 100 MMBOE▪ 4,500m deep Delvina

▪ 350 MMBOE▪ 2,800-3,400m


Palokastra▪ 75 MMBOE▪ 2,100m deep Amonica


▪ ~14 MMBOE▪ 2,000-2,500m

Tomorri▪ 75 MMBOE▪ 2,500m deep

▪ 27 MMBOEAquila (Italy)

▪ Offshore, 850m▪ Since 1998

Shpiragu

Visoka

12

Legal status: Sky has secured exploration license for 7 years and will automatically get a production license when oil or gas is discovered

SOURCE: Production Sharing Contract

Exploration period

First Second Third

Production period

Guaranteed Extension

2 years 3 years 2 years 25 years 5 years

Minimumexpenditure requirementsUSD

Timeframe

Total 2.65 million▪ 0.15 million

G&G evaluation

▪ 2.50 million(2 exploration wells) or 1 well and 100 km seismic


G&G evaluation

▪ 3.00 million (2 deep exploration wells)


150 km seismic acquisition

▪ 0.20 million G&G evaluation

▪ 0.05 million seismic reprocessing

No license ever terminated by the government in Albania

13

Fiscal regime: modern fiscal regime established and expected to remain in place

SOURCE: Production Sharing Contract; Albanian laws and regulations

100% working interest (exclusive rights)25+5 years production periodGovernment take ▪ Royalty 10% of sales revenues▪ Tax 50% of the realized profit▪ Profit sharing with AKBN 0-4% according to cumulative profitPossibility to export 100% of production and repatriate all net earnings100% cost recovery (however interest charges not tax deductable)Capital commitments: USD 7.3 million for explorationCompetitive local workforce

14

Stability: Albania is an emerging market making good progress towards Europe in its economic development and legal environment

SOURCE: Global Insight HIS; Nationmaster; press search

4.13.42.92.62.41.81.41.31.2

GDP per capitaUSD thousand nominal

0.90.6

0.30.30.30.20.10.20.1

200820072006200520042003200220012000

Foreign Direct InvestmentUSD billion

Rank 112 worldwide – behind Egypt, Bosnia, Paraguay, Guatemala, etc.

Rank 84 worldwide – ahead of Egypt, Bosnia, Paraguay, Guatemala, etc.

15

Current oil prices

Exploration and development of Albanian oil fields is attractive compared to alternatives and value-creating at current oil price

90

80

70

60

50

40

30

20

9085807570656055505 45403530252015100

81

6762

53

424133

3328

7510B C D E

F IG

H J

K

Saudi Arabia Spare CapacitySaudi Arabia (MC)Saudi Arabia (FC)Russia (MC)Brazil DW (FC)Venezuelan Heavy Oil (FC)US DW GoM (FC)Russia (FC)Angola DW (FC)Canadian Oil Sands (FC)US Stripper Wells (FC)US 10-30 b/d onshore Low Rate (FC)

Production capacity (2012)Million bopd

Breakeven price1 for oil capacity: 2008-12USD/bbl (real 2008 USD), WTI

Selected Supply Elements

MC = marginal cost capacity (already producing in 2007)FC = full cost capacity (new investments)

2007 liquids production capacity

2012 liquids production capacity

-2

A

L

ABCDEFGHIJKL

Cakrran-Mollaj (FC)

Gorisht-Kocul (FC)

Ballsh-Hekal (FC)

Patos-Marinza (FC)

1 Assumes an IRR of 10% for new capacity additions and cash breakeven for existing production capacity

SOURCE: Wood Mackenzie; EIA; IOGCC

ESTIMATE

16

Other players have succeeded in Albania – Bankers Petroleum

SOURCE: DataStream; Banker Petroleum; press search

Company description

▪ Market cap: USD 1,637 million▪ Enterprise Value: USD 1,610 million▪ Regional presence: Albania (used to

have also some US operations, but these have been spun-off to a newly established public company BNK Petroleum in 2008)

Granted licenses▪ 25 years development license for Patos-

Marinza1

– Proved reserves: 90 MMBOE– the largest onshore oilfield in Europe

▪ 25 years development license for Kucove1

– Proved reserves: 3 MMBOE▪ 7 years exploratory license for Block F

(adjacent to Patos-Marinza; prospective for natural gas)

▪ N/A ▪ Bankers Petroleum drills in Albania since 2004▪ By the end of 2009 Bankers completed 572 wells

(310 producing, 13 water disposal, 249 non-active)

Stock price (BNK at TSX stock exchange)Indexed August 2007 – August 2010

1 Option to renew for additional five-year terms

10,300

6,4385,8754,724

600

2004 20101Q

200920082007

ProductionBarrels of oil per day

Start Exploration Production

0

200

400

600

800

1,000

1.9. 1.11. 1.3.1.3. 1.5.1.9. 1.11. 1.5. 1.9.1.5. 1.9. 1.11. 1.7.1.1.1.7.1.1.1.7.1.1.1.7. 1.3.

2007 2008 2009 2010

DJI Bankers S&P/TSX

January 30, 2008 Bankers acquired a 50% interest in the Kucove field (reserves unknown)

March 3, 2010 Bankers announced increased volume of reserves by 34% to 92.9 MMBOE P90March 26, 2009 Bankers

announced 69.4 MMBOE P90 reserves in their Albanian prospects(Kucove 2.4 MMBOE)

17

0

50

100

150

200

250

300

1.1.1.1.1.1.1.10.1.7. 1.7. 1.7. 1.7.1.4. 1.10. 1.4. 1.10. 1.4. 1.10.

Other players have succeeded in Albania – Petromanas

SOURCE: DataStream; Manas Petroleum; Petromanas; press search

Stock price (PMI at TSXV stock exchange)Indexed August 2007-August 2010Company description

▪ Market cap: USD 204 million▪ Enterprise Value: USD 204 million▪ Regional presence: Assets only in Albania, Parent

Manas Petroleum also has assets in Canada

Manas Adriatic obtained licenses for a totalof 6,000 km2 in Albania▪ Blocks A, B, D and E since December 2007▪ Blocks 2 and 3 since July 2009

▪ 2D Seismic – >4,000 km done before Petromanas– 694 km added by Petromanas in 2008-09– 230 km planned for 2010-11

▪ Main prospects identified– 9 in blocks A, B, D and E– 3 in blocks 2 and 3

▪ Ready to drill an appraisal well in Shpiragu

▪ First drilling expected to start in early 2011

Manas Petroleum

DWM Petroleum

Manas Adriatic

Petromanas Energy (formerly WWI Resources)

Sold in Feb 2010

32% of shares of Petromanas given to DWM

Start Exploration Production

S&P/TSXVDJIPetro ManasManas Petroleum

2007 2008 2009 2010

Feb 24, 2010 Manas Adriatic acquired

March 18, 2010 Manas Petroleum estimated total reserves in its blocks at 3,919 MMBOE P90

Dec 2007 License for blocks A, B, D and E

July 2009License for blocks 2 and 3

May 27, 2010 raised USD 75 M for Albania exploration and development

18

Contents




Q & A

1919

Sky Petroleum will start with the most promising prospects in each block

SOURCE: Experts

Block Prospect

Dumre

▪ Dumre

Block 5

▪ Kanina

Techniques

▪ Data reprocessing

▪ Seismic 50 km▪ Well

▪ Existing data reprocessing

▪ Additional seismic acquisition

▪ Well

Rationale

▪ Dumre 7 Redrill prospect has excellent structural model, proven source rocks and good drilling data

▪ Block contains multiple analog prospects which will be validated by success in the Dumre 7 prospect

▪ Very high reserve potential – 150 MMBOE in Dumre 7, an additional 100 MMBOE in analog features

▪ Kanina 1 proved hydrocarbons in the system; reservoir rock is present

▪ Need to re-evaluate porosity development and technology to deal with low porosity, high density oil

▪ Attractive prospect reserve potential – 75 MMBOE

Block 4

▪ Palokastra ▪ Existing data reprocessing

▪ Additional seismic acquisition

▪ Well

▪ Initial test well indicated the presence of hydrocarbons and producible reservoir rocks

▪ Need to develop a better structural model▪ Terrain conducive to good seismic data acquisition▪ Attractive prospect reserve potential – 75 MMBOE

2020

Sky Petroleum has a staged investment plan to develop the prospects to maximize their value at minimum risk

SOURCE: Experts

Exploration period

First (2 years) Second (3 years) Third (2 years)

Development activity Timing

▪ Q4 2010▪ Q1 2011▪ Q4 2011

▪ Q1,2 2011▪ Q3,4 2011▪ Q2, 2011▪ Q3 2012

▪ Q4 2011▪ Q2 2012▪ Q3 2013

InvestmentUSD million

1.51.5

25.0

0.50.51.0

18.0

0.51.07.0

Condition to proceed

▪ None▪ None▪ Preparation of improved structural model for

well path planning

▪ None▪ None▪ None▪ Positive indications from reservoir and

structural modeling

▪ None▪ None▪ Positive indications from structural modeling

PRELIMINARY

1 Includes gathering and assimilating of all previous data on all three blocks

▪ Dumre– Seismic reprocessing– Additional seismic acquisition – Exploratory well

▪ Kanina– Seismic reprocessing– Reservoir modeling studies– Additional seismic acquisition– Exploratory well

▪ Palokastra– Seismic reprocessing– Additional seismic acquisition– Exploratory well

1

21

Contents




Q & A

22

Multiples

▪ Based on Enterprise Value of publicly traded E&P companies divided by P90 reserves

▪ Compared to Sky Petroleum expected P90 reserves

1

2

Value of Sky Petroleum’s Albanian is estimated at roughly USD 1-3 billion dependent on POS and reserve estimates

Stochastic DCF model

▪ NPV of individual prospects based on Discounted Cash Flow

▪ Real option valuation (option to quit after unsuccessful exploratory well)

▪ Monte Carlo simulation of stochastic inputs to capture uncertainty

USD 1-3 billion(estimated)

1

Stock price reaction

▪ Based on stock price reaction(net of index evolution) to capacity announcements of other players in Albania

▪ Normalized to MMBOE of reserves

3

Estimates by all 3 methods depend heavily on POS and reserve estimated

Detailed model mechanics and assumptions in the backup

23

Simplified1 stochastic DCF model mechanics

Cash flow, NPV

Capex

Opex

Revenue

Stochastic input

Key inputs Method Key parameters/illustrative curves

Probability of success

▪ Estimated per prospect▪ Based on source rock, reservoir

rock, trap and migration assessment

▪ Range 10% (Libohova) – 35% (Dumre)

Oil price prediction

▪ Based on long-term EIA forecast

▪ Normal distribution 02010 2015 2020 2025 2030 2035

Percent of reservesProduction profile

▪ Based on analogous fields in Albania (peak 7% of recoverable reserves 5 years after production start)

Addressable reserves

▪ Estimated per prospect (P50)▪ Based on estimated reservoir

size and saturation▪ Log-normal distribution

▪ Range 50 MMBOE (Ramica) –150 MMBOE (Dumre)

▪ TOTAL 875 MMBOE▪ Expected mostly oil

0

20Opex per BOE

▪ Based on typical Opex curve▪ Calibrated for Albania

Exploratory Capex

▪ Estimated per prospect▪ Driven by exploratory well cost▪ Based on analogous well costs

in the region

▪ Range USD 8 million (Palokastra) –USD 26 million (Dumre)

Development Capex

▪ Estimated per prospect▪ Based on exploratory Capex

0

2

USD per barrel

USD per barrel of production

USD per BOE of reserves

0

10

1 Full details in backup

1

24SOURCE: Experts

Block 4

Block Prospect

Mean un-risked reserve potential MMBOE

875

Ramica 50

Butrinti 75

Vurgu 75

Kanina South 75

Llogora 100

Tomorri 75

Palokastra 75

Konica 100

Libohava 100

Dumre 150

Block 5

Dumre

Total

Prospect specifics driven by mean reserve potential and probability of success assumptions1

90

30

80

90

90

90

90

90

90

90

Share of oil in the discoveryPercent of total reserve

Exploratory Well CapexUSD million

Oil

Gas

Exploration startYear

2010

2017

2018

2012

2019

2016

2011

2013

2015

2014

25

12

15

7

7

15

18

14

12

10

Probability of SuccessPercent

17

17

25

17

35

17

35

25

25

25

Total mean risked potential around 211 MMBOE

25

NPVUSD billion

100%

-2 0 102 4 6 8

3,02,52,01,51,0

0 NPVUSD billion

0,5

Under current assumptions, the mean NPV of the project isUSD ~2.1 billion (estimated)

▪ The probability of positive NPV is ~94%1

▪ Mean NPV is USD 2.1 billion(minimum USD -0.1 billion, maximum USD 13.6 billion, standard deviation USD 1.4 billion)

▪ The downside is very limited thanks to the staged investment decisions

▪ Dumre block is the main driver of the overall NPV with a mean valueUSD 0.4 billion

SOURCE: Monte Carlo simulation: 100,000 iterations

1

1 Assuming independent prospectsCautionary Note: NPV is complex and these valuations may not be indicative of the actual value.

Probability density

Cumulative probability of NPV<x

5% 90% 5%-0.13 4.70

0 42 6-2 8 10

6%

26

The market currently values Albanian P90 reserves at USD 10-30 per barrel, putting Sky Petroleum at USD ~1-3 billion (estimated)

1 One week before the event until two weeks after the event, net of index change for the same period2 Kucove field at the end of production life (discovered 1928, ~50% reserves depleted)Cautionary Note: Valuations based on the results of others may not be indicative of the actual value of Sky Petroleum.

▪ Bankers announced 45.3 MMBOE P1 reserves (1.7 MMBOE increase)

▪ Market cap grew by USD 24 million1

▪ Bankers acquired 50% of Kucove field2 (~24 MMBOE increase)






Event and stock reactionPrice per reservesUSD/MMBOE

32

22

10

142007

2008

2009

2010

Total potential value of Sky Petroleum’s Albanian assets is USD ~1-3 billion

Assuming ▪ USD 10-30 per BOE of

reserves▪ P90 reserves at 105

MMBOE based on the following– Mean risked

reserve potential 211 MMBOE corresponds to P50 reserves

– P90 reserves are typically ~50% of P50 reserves

– Mubarek field not included

SOURCE: Company reports; DataStream; press search

3

27

Contents




Q & A


sky petroleum: exploration blocks in albania - summary

Investor Relations

securities of sky petroleum

sky petroleum introduction

summary of sky petroleum

thirdparty information

said information

historical information

information purposes

sky petroleums filings