Recent federal leasing and drilling permits, together with a USGS estimate of approximately 1.4 billion barrels of undiscovered oil resources beneath Nevada federal lands, reinforce the state's potential for expanded domestic production

WOODS CROSS, UT / ACCESS Newswire / August 4, 2026 / Sky Quarry Inc. (NASDAQ:SKYQ) ("Sky Quarry" or the "Company"), an energy infrastructure company focused on domestic refining and resource development, today 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.¹ The agency's June 23 sale included four parcels totaling approximately 10,211 acres, all of which were acquired by Reanco Enterprises LP.²

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;³ and
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 2026.⁴

The Company 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.⁵

"The USGS assessment demonstrates that Nevada possesses a potentially significant domestic oil resource, while the recent lease sales and drilling permits show that operators are taking tangible steps to evaluate that potential," said Marcus Laun, Chief Executive Officer of Sky Quarry. "Nevada has the geological resource, an established petroleum-producing region and, through Foreland, an in-state refinery that we believe can provide a natural market for successful new production."

Sky Quarry's 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.⁶

The Company 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.

"The economics of a crude oil purchase are based not simply on the price at the wellhead, but on the total cost of delivering that barrel to the refinery," Laun said. "A Nevada barrel located close to Foreland could be especially attractive because reduced transportation expense can improve the economics for both the producer and the refinery."

Foreland has historically operated in a region where available crude supply has been constrained. Sky Quarry 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.

Sky Quarry believes increasing Nevada crude production could provide several potential benefits, including:

More competitive 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.

Sky Quarry intends to continue monitoring Nevada leasing, exploration and drilling activity and is open to discussing potential crude-purchase, transportation and offtake arrangements with qualified regional producers. Any transaction would remain subject to crude quality, pricing, transportation requirements, refinery specifications, regulatory considerations and definitive commercial agreements.

Source References

¹ Bureau of Land Management, Nevada State Office, Competitive Oil & Gas Lease Sale Results Summary-March 31, 2026. https://www.blm.gov/sites/default/files/docs/2026-03/NV%202026%2003%20%281%29.pdf

² Bureau of Land Management, Nevada State Office, Competitive Oil & Gas Lease Sale Results-June 23, 2026. https://www.blm.gov/sites/default/files/docs/2026-06/NV%20June%202026%20Sale%20Results.pdf

³ Bureau of Land Management, BLM Approves Oil Drill Permit in Nevada's Railroad Valley; Nevada Division of Minerals, Trap Springs 11-42 permit 0987. https://www.blm.gov/announcement/blm-approves-oil-drill-permit-nevadas-railroad-valley and https://www.minerals.nv.gov/siteassets/content/programs/og/ogpermits/oil-0987-2-26-2026-unionville-royalty-company-llc-trap-springs-11-42.pdf

⁴ Bureau of Land Management, BLM Approves Oil Well Drilling Permit; Nevada Division of Minerals, North Diamond Valley permit 0988. https://www.blm.gov/announcement/blm-approves-oil-well-drilling-permit and https://www.minerals.nv.gov/siteassets/content/programs/og/ogpermits/oil-0988-04-29-2026-great-basin-operating-llc-north-diamond-valley.pdf

⁵ 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. https://pubs.usgs.gov/publication/fs20253032/full

⁶ Sky Quarry Inc., Annual Report on Form 10-K for the year ended December 31, 2025, description of the Eagle Springs Refinery, its products and crude-oil transportation. https://www.sec.gov/Archives/edgar/data/1812447/000109690626000438/skyq-20251231_10k.htm

About Sky Quarry Inc.
Sky Quarry Inc. is an energy infrastructure company focused on domestic refining and resource development. Through its wholly owned subsidiary, Foreland Refining Corporation, the Company operates the Eagle Springs Refinery near Ely, Nevada, which produces diesel, vacuum gas oil, naphtha and liquid paving asphalt. Sky Quarry is also developing its PR Spring facility in Utah to recover hydrocarbons and other marketable materials from waste asphalt shingles and oil-bearing resources.

For more information, visit Sky Quarry's corporate website at https://skyquarry.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding potential increases in Nevada oil exploration and production; the timing or success of permitted exploration wells; the development of leased acreage; the existence, accessibility, economic viability and recoverability of estimated oil resources; the availability, quality and pricing of regional crude oil; potential transportation-cost and logistical advantages associated with Foreland's location; Foreland's ability to serve as a natural market or destination for Nevada crude production; Foreland's ability to purchase, transport or process additional crude oil; the diversification of Foreland's supply base; potential offtake, crude-purchase or transportation arrangements; refinery utilization and operations; supply conditions and market dynamics in Nevada and California; the potential to attract investment or encourage further oil and gas development; the development of the PR Spring facility in Utah; and the anticipated economic or strategic benefits of increased Nevada crude production. Forward-looking statements are based on current expectations, estimates and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Estimates of undiscovered, technically recoverable resources are not estimates of proved reserves and do not assure that oil will be discovered, economically produced or made available to Foreland. The issuance of a lease or drilling permit does not assure that a well will be drilled, that hydrocarbons will be discovered, that any discovery will be commercially viable or that Sky Quarry or Foreland will enter into a purchase or offtake agreement with any operator. Readers should not place undue reliance on forward-looking statements. Sky Quarry undertakes no obligation to update such statements except as required by applicable law.

Investor Relations Contact
Sky Quarry Inc. Email: ir@skyquarry.com

SOURCE: Sky Quarry

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