SOURCE: Skye Petroleum, Inc.

Skye Petroleum, Inc.

May 09, 2011 12:41 ET

Skye Petroleum, Inc. Adds Two New Oil Leases Covering Ten Producing Oil Wells

SUGAR LAND, TX--(Marketwire - May 9, 2011) - Skye Petroleum, Inc. (PINKSHEETS: SKPO) (the "company" or "Skye") is a publicly traded corporation, listed on the "OTC Pink Current Information" tier of the OTC Markets Group Inc. quotation venue, under the trading symbol SKPO. Skye is pleased to announce the signing of two additional leases with five producing wells on each lease. The two new leases, totaling 69 acres, increase the total acreage currently under lease to 211 acres.

Brad Knollenberg, Chief Executive Officer of Skye Petroleum, Inc., said, "We are excited to continue adding to our holdings in Warren County. The opportunities are tremendous in northwest Pennsylvania and since we have opened our regional office in Sugar Grove, we have seen a significant increase in interest for our well treatment process throughout the region."

Skye currently has 20 wells under contract and 10 wells under lease for application of its paraffin treatment process. Knollenberg added, "This will give us the opportunity to apply our paraffin control technology to these ten producing wells, as well as declare a percentage of the recoverable reserves as an asset on Skye's Balance Sheet." Skye anticipates adding to its overall lease holdings covering producing oil wells, as it continues to discuss contractual arrangements with operators who desire to increase production in their oil wells.

Buck Eaton, Chief Operations Officer of Skye, said, "We believe that as the oil industry becomes more knowledgeable of this technology, our growth could increase exponentially."

About Skye Petroleum, Inc. - Skye owns a proprietary chemical technology consisting of a paraffin treatment process for crude oil. The technology is applied with Skye's slip-stream well treatment method to stimulate and improve production profiles of certain crude oil wells. Skye is capable of identifying problematic crude oil fields where the composition of the crude oil includes pressure and temperature sensitive paraffin compounds. Skye's treatment method reduces and prevents the precipitation of the paraffin compounds, while increasing the production rate of the crude oil. Skye contracts with oil companies to treat existing oil wells, producing revenue by significantly increasing oil production of currently producing wells with its paraffin control technology. Skye is also acquiring its own leases on behalf of its shareholders.

For more information, please visit our web site, www.SkyePetroleum.com or contact Buck Eaton at Office@SkyePetroleum.com or 713-254-0176

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