WOODS CROSS, UT, September 3, 2026 – Advancement of $50 Million Nevada Oil Development Program to Support Lower-Cost Regional Feedstock
Sky Quarry Inc. (Nasdaq: SKYQ), an energy infrastructure company focused on domestic refining and resource development, has announced that it is advancing a proposed Nevada oil exploration and production initiative targeting up to $50 million of third-party investment in qualified exploration and production companies.
The initiative is intended to accelerate the development of new domestic crude oil resources while potentially providing SKYQ Nevada refining operations with access to lower-cost regional feedstock.
Under the contemplated structure, investments would be made directly in participating Nevada producers and projects rather than through the issuance of additional SKYQ common equity. The structure is therefore designed to support new drilling activity while avoiding dilution to existing SYKQ shareholders.
For SKYQ, locally produced crude could reduce transportation expenses and decrease reliance on feedstock sourced from more distant markets. Subject to successful drilling, acceptable crude quality and commercially favorable offtake terms, lower delivered feedstock costs could support higher refinery utilization, stronger operating margins and improved cash flow.
SKYQ has also discussed a U.S. Geological Survey estimate relating to approximately 1.4 billion barrels of oil resources on federal lands in Nevada. SKYQ believes this resource potential, together with existing refining infrastructure and growing interest in fuel resilience, creates a compelling environment for renewed Nevada exploration and development.
During the next phase of the initiative, SKYQ expects to:
Evaluate potential Nevada producer and project participants;
Review geological, technical, regulatory and financial information;
Assist selected participants in developing proposed financing structures;
Evaluate preliminary crude oil offtake terms;
Assess crude quality, transportation requirements and compatibility with the Company's refining operations; and
Develop proposed drilling and development schedules with participating parties.
Growing Nevada Oil Exploration Activity and Potential New Regional Supply for Subsidiary Foreland Refinery
$SKYQ has highlighted recent federal oil and gas leasing and drilling-permit activity that the Company believes demonstrates renewed interest in Nevada oil exploration and could support increased in-state crude oil production.
During the first half of 2026, the Bureau of Land Management ("BLM") completed two Nevada competitive oil and gas lease sales covering approximately 30,168 acres. The BLM's March 31 sale included 11 parcels totaling approximately 19,957 acres, all of which received bids.The agency's June 23 sale included four parcels totaling approximately 10,211 acres, all of which were acquired by Reanco Enterprises LP.
In addition to this leasing activity, two significant Nevada exploration wells have recently received federal and state approvals:
Unionville Royalty Company LLC's proposed Trap Springs 11-42 exploration well in Railroad Valley, which received BLM approval in December 2025, and Nevada Division of Minerals permit 0987 in February 2026.
Great Basin Operating LLC's proposed North Diamond Valley Great Basin Unit 1-A exploration well, approximately 45 miles south of Elko, which received BLM approval and Nevada Division of Minerals permit 0988 in April 2026.
SKYU believes these leasing and permitting developments represent important steps toward accessing Nevada's petroleum potential. Successful exploration and development are expected to increase the volume and diversity of crude oil available within Nevada.
The recent activity is occurring against a substantial geological resource backdrop. A 2025 U.S. Geological Survey assessment estimated that federal lands in Nevada contain a mean allocated resource of approximately 1.407 billion barrels of undiscovered, technically recoverable oil, placing Nevada third among U.S. states in the assessment, behind Alaska and New Mexico.
The SKYQ wholly owned subsidiary, Foreland Refining Corporation, operates the Eagle Springs Refinery near Ely, Nevada. Foreland processes crude oil into diesel, vacuum gas oil, naphtha, liquid paving asphalt and other petroleum products. Crude oil is delivered to the refinery by truck from producers in Nevada, Utah and other North American producing regions.
SYKQ believes that Foreland's location could provide a meaningful logistical advantage as additional Nevada oil resources are explored and developed. Because crude is delivered to the refinery by truck, transportation distance is an important component of the total delivered feedstock cost. Nevada crude produced relatively close to Foreland could therefore be economically attractive to the refinery compared with otherwise comparable barrels transported substantially longer distances from outside the region.
Foreland has historically operated in a region where available crude supply has been constrained. SKYQ believes successful new exploration could increase the number of regional producers, diversify Foreland's supply base and support higher utilization of existing Nevada refining infrastructure.
The North Diamond Valley project also reflects interest in evaluating petroleum opportunities outside Nevada's principal historical producing area. Successful exploration could provide additional geological information, attract investment and encourage further oil and gas development in the state.
$SKYQ believes increasing Nevada crude production could provide several potential benefits, including:
Competitively delivered feedstock costs for Foreland;
Reduced reliance on crude transported from distant producing regions;
Greater supply diversity and refinery operating flexibility;
An established in-state market for Nevada oil producers;
Increased utilization of existing domestic refining infrastructure; and
Additional investment, employment and economic activity within Nevada.
This activity is extremely positive at a time when Nevada is operating in an extremely tight supply situation caused by the reduction in refining capacity in California.
Domestic Refining and Resource Development Company Producing Diesel, Vacuum Gas Oil, Naphtha and Liquid Paving Asphalt.
Also Developing Facility to Recover Hydrocarbons and Other Marketable Materials from Waste Asphalt Shingles and Oil-Bearing Resources.
Proprietary ECOSolv Technology is Diverting Waste from Landfills, Reducing Emissions and Pursuing a Waste-to-Energy Model.
Advancing Proposed Nevada Oil Exploration and Production Initiative for up to $50 million of Third-Party Investment, Non-Dilutive to Shareholders.
Strategic Objective to Increase Regional Crude Availability, Reduce Delivered Feedstock Costs and Support Higher Refinery Utilization.
Shareholder Benefits May Include: Improved Operating Margins, Cash Flow and Long-Term Value Without Relying on Additional Equity Dilution.
Increasing Nevada Oil Exploration Activity and Potential New Regional Supply for Subsidiary Refinery.
Recent Federal Permits and Estimate of 1.4 Billion Barrels of Oil Resources in Nevada Reinforce the State's Potential for Expanded Domestic Production.
Sky Quarry Inc. (NASDAQ: SKYQ) - Company Overview
Sky Quarry Inc. is a Utah-based energy and environmental technology company focused on oil production, refining, waste recycling and environmental remediation. The company operates the Eagle Springs Refinery in Nevada and is developing technologies designed to recover valuable petroleum products and other usable materials from waste asphalt shingles and oil-saturated sands and soils. Its proprietary ECOSolv process is designed to separate oil from oil-bearing materials using a closed-loop solvent system, with the goal of reducing landfill waste and reliance on virgin crude extraction.
Mission
Sky Quarry's stated mission is to “conserve, recycle and upcycle waste asphalt shingle material,” reduce landfill waste and decrease emissions, while producing commercially viable products for the infrastructure and energy markets. The company aims to combine environmental remediation with energy production by converting materials traditionally viewed as waste into potentially valuable resources.
Sky Quarry was incorporated on June 4, 2019, in Delaware under the original name Recoteq Inc. The company subsequently changed its name to Sky Quarry Inc. on April 22, 2020.
In short: Sky Quarry is essentially pursuing a “waste-to-energy” and resource-recovery model, combining refining and oil production with technology intended to recycle asphalt shingles and remediate oil-bearing materials. Its investment story centers on turning these assets and technologies into a scalable operating business while potentially reducing waste and environmental impact.
For more information on SKYQ visit:https://skyquarry.com
Email: ir@skyquarry.com or shareholdercommunity@skyquarry.com
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Media Contact
Company Name: Sky Quarry Inc. (Nasdaq: SKYQ)
Contact Person: Marcus Laun, CEO
Email: Send Email
Phone: (424) 394-1090
Address:707 W. 700 S. Suite 101 Woods Cross, UT 84087 United States
Country: United States
Website: https://skyquarry.com/
