Sky Petroleum Announces Results for the 2007 First Quarter

Sky Petroleum, Inc. (OTCBB: SKPI), an oil and gas company, today
announced results for the 2007 fiscal first quarter ended March 31,
2007. The company reported the Mubarek H2 well produced more than
21,500 barrels of oil in the first quarter, averaging approximately
238 barrels per day which resulted in net revenue of $969,226. The
company generated a positive cash flow from operations of $622,788.

"We are pleased with the first quarter financial performance and
particularly our ability to generate over $600,000 in positive cash
flow as well as keeping cash expenses for the quarter to around
$500,000," said Brent Kinney, chief executive officer of Sky
Petroleum, Inc. "The production from the H2 well appears to have
stabilized to approximately 150 BOPD which should result in cash flow
to Sky of about $150,000 to $200,000 per month depending on the price
of oil, going forward."

First Quarter Results

Net revenues were $969,226 for the 2007 first quarter with total
expenses of $1,480,768 which included $977,960 million in non-cash
expenses. Non-cash expenses include depletion and depreciation as well
as share based compensation. The company reported a net loss of
$444,546 or $0.01 per share for the first quarter of 2007. Cash and
equivalents along with accounts receivable were $6,694,909 for the
quarter.

Outlook

Sky Petroleum expects to generate additional oil and gas revenue
in the 2007 second quarter and for the balance of 2007. However,
actual production may vary from our forecasts or estimates and does
not include any additional production from other Mubarek wells,
planned or contemplated, if any. In addition, we expect the drilling
of the second well, for which funding has been paid, to commence
during the second quarter of 2007. Timing will be conditional on when
the rig, which has been contracted, arrives at the Mubarak Field.

About Sky Petroleum

Sky Petroleum (OTCBB: SKPI) is an oil and gas exploration company.
Sky Petroleum's primary focus is to seek opportunities where
discoveries can be appraised rapidly, and developments can be advanced
either by accessing existing infrastructure, or by applying the
extensive experience of established joint-venture partners. In
addition, the company also plans some higher risk, higher reward
exploration prospects. For additional information please visit
www.skypetroleum.com

Safe Harbor

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. Potential
risks and uncertainties include, but are not limited to, the ability
to stabilize the well, the ability to carry out additional stimulation
of the zones producing oil, the accuracy of estimated production rates
and the price of crude oil, the accuracy of operating costs and
monthly revenue forecasts, the timing and success of other proposed
infill drilling programs, the timing for drilling the second
obligation well, the contemplated continued production at the Mubarek
Field, 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, obtaining drilling equipment on a timely fashion,
commodity price risk, and the market acceptance and successful
technical and economic implementation of Sky Petroleum's intended
plan. Additional discussion of these and other risk factors affecting
the company's business and prospects is contained in the company's
periodic filings with the SEC.

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Sky Petroleum, Inc.
Consolidated Balance Sheet

March 31, December 31,
2007 2006
------------- -------------
(Unaudited)
Assets
Current assets:
Cash and equivalents $ 5,239,806 $ 5,810,763
Accounts receivable, net of allowance
of $0 1,455,103 1,679,649
Prepaid expenses and other assets 79,942 12,667
------------- -------------
Total current assets 6,774,851 7,503,079
------------- -------------
Investment in oil and gas properties, net
- full cost method of accounting
including unevaluated costs of $13.0
million (Note 4) 17,203,628 17,701,760
Fixed assets, net 3,991 4,468
Deposits and other assets 2,839 4,066
Investment in non-affiliated entity 1,000,000 ---
------------- -------------
Total 18,210,458 17,710,294
------------- -------------
Total Assets $ 24,985,309 $ 25,213,373
============= =============

Liabilities and Stockholders' Equity
Current liabilities:
Accrued liabilities $ 86,289 $ 135,777

Stockholders' Equity
Series A Preferred stock, $0.001 par
value, 10,000,000 shares authorized,
3,055,556shares issued and outstanding
(Note 3) 3,056 3,056
Common Stock, $0.001 par value,
150,000,000 shares authorized,
46,571,485 shares issued and outstanding 46,571 46,571
Additional paid-in capital 38,523,922 38,065,452
Cumulative translation adjustment (1,088) (1,088)
Accumulated deficit (13,673,441) (13,036,395)
------------- -------------
Total Stockholders' Equity 24,899,020 25,077,596
------------- -------------
Total Liabilities and Stockholders'
Equity $ 24,985,309 $ 25,213,373
============= =============

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Sky Petroleum, Inc.
Consolidated Statements of Operations
(Unaudited)

Three Months Ended
March 31
-------------------------
2007 2006
------------ ------------
(Restated)
Oil revenues $ 969,226 $ ---
------------ ------------
Expenses:
Consulting services 206,122 173,672
Compensation - related party 52,500 52,500
Share based compensation 478,106 433,002
Lease operating expenses 53,301 ---
Depletion and depreciation 499,854
Investor relations 9,731 89,915
Professional fees 27,435 96,069
Director fees 37,500 53,400
General and administrative expenses 116,219 77,673
------------ ------------
Total Expenses 1,480,768 976,231
------------ ------------

Net operating loss (511,542) (976,231)

Other income (expense):
Interest income 66,996 157,579
Cumulative translation adjustment --- (3,760)
------------ ------------
Total other income 66,996 153,819
------------ ------------

Net loss $ (444,546) $ (822,412)
============ ============

Dividends on Preferred Stock (192,500) (192,500)

Net loss applicable to common stockholders $ (637,046) $(1,014,912)
============ ============

Net (loss) per share - basic and fully
diluted $ (0.01) $ (0.02)
============ ============

Weighted average of number of common shares
outstanding - basic and fully diluted 46,571,485 46,365,685
============ ============
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