Sky Quarry Pushes To Expand Drilling In Nevada, Home To An Estimated 1.4 Billion Barrels Of Oil

The Company's Foreland Refinery, Nevada's only operating refinery, provides a direct in-state outlet for local crude production.

Sky Quarry Inc. ("Sky Quarry" or the "Company"), an energy infrastructure company focused on domestic refining and resource development, today announced that it is launching a crude oil drilling and production initiative in Nevada's Railroad Valley - the state's primary oil-producing region - and that it intends to refine that crude at its Foreland Refinery, the only operating refinery in Nevada.

According to a 2025 U.S. Geological Survey assessment, Nevada holds approximately 1.4 billion barrels of undiscovered, technically recoverable oil beneath federal lands, the third largest such resource of any state, behind only Alaska and New Mexico.¹ Yet despite sitting atop that resource, Nevada today imports more than 90% of its transportation fuels, much of it from supply-constrained California. Sky Quarry intends to help close that gap.

Michael D. O'Neal, President of Grant Canyon Oil & Gas, LLC and Saddle Rim Energy (Texas), LLC, commented, "We firmly believe that the prospects we are developing in Nevada are more attractive than most other parts of the U.S. Our current production has very long-lived reserves with shallow field decline rates. There are still huge undiscovered oil and gas fields in Nevada. We look forward to expanding our production and working with Foreland Refining Corporation and Sky Quarry."

The Company is actively working to catalyze new drilling in Railroad Valley, assisting regional producers in bringing additional wells online and increasing production of Nevada crude. Producers are evaluating opportunities to expand output, and Sky Quarry is positioning Foreland to refine the additional local crude those efforts could deliver.

The Foreland Refinery is particularly well-suited for processing Railroad Valley crude. Because the basin has limited pipeline access to outside markets, it is generally more economical to refine locally - giving Foreland a natural advantage in securing local supply. As regional production grows, the Company intends to increase utilization above historical levels, converting more local barrels into fuel for the state.

"At its peak, Railroad Valley wells produced roughly 5,000 barrels per day, and we believe more wells with that kind of productivity are still possible," said Marcus Laun, Chief Executive Officer of Sky Quarry. "More production would strengthen Nevada's energy infrastructure and increase the amount of locally produced crude available for refining in-state. That is the opportunity we are pursuing."

About Sky Quarry Inc.
Sky Quarry is an energy infrastructure company focused on domestic refining and resource development. The Company operates the Foreland Refinery in Nevada, the state's only operating refinery, producing diesel, vacuum gas oil (VGO), naphtha and liquid paving asphalt for western U.S. markets. Sky Quarry is also advancing development initiatives at PR Spring in Utah, focused on technologies to recover hydrocarbons from oil-saturated sands, soils and consumer waste, including asphalt shingles, using its proprietary ECOSolv process. This closed-loop technology aims to enable efficient oil recovery while reducing landfill waste and supporting domestic energy production.

For more information, visit www.skyquarry.com.

¹ U.S. Geological Survey, "An Estimate of Undiscovered, Technically Recoverable Oil and Gas Resources Underlying Federal Lands of the Onshore United States, 2025," Fact Sheet 2025-3032, June 18, 2025. https://pubs.usgs.gov/publication/fs20253032/full