Sky Quarry Pushes to Expand Drilling in Nevada, Home to an Estimated 1.4 Billion Barrels of Oil

Rhea-AI Summary

Sky Quarry (NASDAQ:SKYQ) announced a crude oil drilling and production initiative in Nevada’s Railroad Valley, the state’s primary oil-producing region. The company plans to refine this crude at its Foreland Refinery, Nevada’s only operating refinery, aiming to boost local fuel supply and refinery utilization.

News Market Reaction – SKYQ

-10.96%

16 alerts

-10.96% Session close to close

+8.8% Peak Tracked

-20.8% Trough Tracked

$10.50M Market Cap

0.6x Rel. Volume

In the Jun 3 session, SKYQ declined 10.96%, reflecting a significant negative market reaction. Argus tracked a peak move of +8.8% during that session. Argus tracked a trough of -20.8% from its starting point during tracking. Our momentum scanner triggered 16 alerts that day, indicating notable trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock dropped -11.0% in the session following this news. A negative reaction despite expansion n...

Analysis

The stock dropped -11.0% in the session following this news. A negative reaction despite expansion news fits a pattern where prior positive updates, including fuel security positioning and policy support, sometimes preceded double‑digit declines. The market may be weighing execution and financing risks, particularly given an expanded $12,600,000 ATM program within a broader $1,000,000,000 shelf. Investors have also seen legal claims disclosed in filings, which, combined with past volatility, could sensitize sentiment to ambitious growth announcements.

Key Figures

Nevada oil resource: 1.4 billion barrels Nevada fuel imports: more than 90% Railroad Valley peak output: 5,000 barrels per day +5 more

8 metrics

Nevada oil resource 1.4 billion barrels Undiscovered, technically recoverable oil beneath federal lands per 2025 USGS

Nevada fuel imports more than 90% Share of transportation fuels imported into Nevada

Railroad Valley peak output 5,000 barrels per day Historical peak production from Railroad Valley wells

ATM capacity $12,600,000 Maximum aggregate sales price under amended at-the-market program

Prior ATM limit $4,700,000 Previous ceiling for ATM share sales before April 22, 2026

ATM shares sold $1,300,000 Common stock sold under prior prospectus in preceding 12 months

Public float $42,500,000 Float based on 3,381,046 shares at $12.59 per share in 424B5

Legal claim amount $2,200,000 Approximate size of one legal claim disclosed in 424B5

Historical Context

5 past events · Latest: May 11 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 11	Fuel security positioning	Positive	-9.5%	Company underscored role in Nevada fuel resiliency with ~5,000 bpd refinery capacity.
May 07	Low‑carbon fuels MOU	Positive	-11.2%	Signed multi‑party MOU to advance next‑generation low‑carbon fuel technologies and integration.
May 04	PR Spring RFP detail	Positive	+0.3%	Outlined economics and capacities for 180M‑barrel PR Spring oil sands commercialization RFP.
Apr 29	PR Spring RFP launch	Positive	+6.3%	Announced RFP to accelerate development of ~180M‑barrel PR Spring oil sands asset in Utah.
Apr 23	Policy tailwind highlight	Positive	-13.8%	Highlighted Defense Production Act support for domestic refining and scarcity of Nevada refinery.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent company-positive infrastructure and asset updates have often been followed by negative price reactions, with only some commercialization-focused news aligning positively with the share move.

Recent Company History

Over the last few months, Sky Quarry highlighted its Nevada refinery as a scarce in‑state asset and pursued strategic initiatives, including low‑carbon fuel MOUs and accelerated commercialization of its ~180 million barrel PR Spring oil sands asset spanning ~5,900 acres. Several of these updates, including national fuel security positioning and federal policy tailwinds on April 23, 2026, were followed by double‑digit single‑day declines, while some PR Spring RFP announcements drew modestly positive reactions. Today’s Nevada drilling push continues the theme of building integrated upstream‑to‑refining optionality.

Key Terms

at-the-market common stock offering program, form s-3, prospectus supplement, form 144, +1 more

5 terms

at-the-market common stock offering program financial

"at-the-market common stock offering program."

An at-the-market common stock offering program lets a company sell newly issued shares directly into the open market at prevailing prices over time through a broker, rather than all at once at a fixed price. It matters to investors because it’s a flexible way for a company to raise cash when needed—like selling slices of a pie one by one—while gradually increasing the supply of shares, which can lower per-share value and reduce existing owners’ percentage stake.

form s-3 regulatory

"has filed a shelf registration on Form S-3 to offer and sell"

Form S-3 is a legal document companies use to register their stock sales with the government, making it easier and faster for them to raise money by selling shares to investors. It’s like having a pre-approved shopping list that lets a company quickly sell new shares when they need funds, without going through a lengthy approval process each time.

prospectus supplement regulatory

"The supplement states $1.3 million of Common Stock was sold under the prior prospectus"

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

form 144 regulatory

"affiliate Leo B. Womack reports proposed dispositions of Common Stock under Form 144."

Form 144 is a document that investors must file with the government when they plan to sell a large number of shares of a company's stock. It helps ensure transparency so everyone knows how many shares are being sold and when, which can impact the stock's price.

View in glossary

reverse stock split financial

"reflects a 1-for-8 reverse stock split that the company implemented"

A reverse stock split reduces a company's number of outstanding shares while raising the price per share proportionally, so the total value of each investor's holding is unchanged; a 1-for-10 split turns 100 shares worth $1 each into 10 shares worth $10 each. Companies often do this to regain compliance with an exchange's minimum price rule or to attract investors who avoid very low-priced stocks.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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

WOODS CROSS, UT / ACCESS Newswire / June 3, 2026 / Sky Quarry Inc. (NASDAQ:SKYQ) ("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.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements about the Company's initiatives, partnerships, plans and strategy, future financial and/or operating results and projections, future developments in the industry and policy landscape, and the potential impact of regulations and government initiatives related to the energy industry. All statements other than statements of historical fact may constitute forward-looking statements. The statements may be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "seek," "estimate," "will," "project," "potential," "may," "can," "would," "could," "if," or words of similar meaning. Such statements are based on current expectations and assumptions of management, many of which are beyond the Company's control, and are subject to a number of risks, uncertainties, and factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described explicitly or implicitly in any forward-looking statement. Forward-looking statements speak only as of the date hereof. Except as required by applicable law, the Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events and circumstances, or otherwise. You are urged to carefully review and consider the cautionary statements and the Company's other disclosures, including the statements made under the heading "Risk Factors" and elsewhere in the Company's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other filings made with the SEC.

Investor Relations
Jennifer Standley
Director of Investor Relations
ir@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

SOURCE: Sky Quarry

View the original press release on ACCESS Newswire

FAQ

What drilling initiative did Sky Quarry (NASDAQ:SKYQ) announce in Nevada on June 3, 2026?

Sky Quarry announced a new crude oil drilling and production initiative in Nevada’s Railroad Valley. According to Sky Quarry, the company plans to develop local oil prospects and refine produced crude at its Foreland Refinery, supporting in-state fuel supplies and utilization.

How large is the oil resource Sky Quarry is targeting in Nevada’s Railroad Valley (SKYQ)?

Sky Quarry is targeting opportunities within a basin linked to a major Nevada oil resource. According to Sky Quarry, a 2025 U.S. Geological Survey assessment estimates about 1.4 billion barrels of undiscovered, technically recoverable oil beneath Nevada’s federal lands.

What role does Sky Quarry’s Foreland Refinery play in its Nevada drilling plans for SKYQ?

Foreland Refinery is central to Sky Quarry’s Nevada strategy as the state’s only operating refinery. According to Sky Quarry, Foreland is well suited for Railroad Valley crude and is positioned to refine additional local barrels as regional oil production increases.

How could Sky Quarry’s Nevada drilling initiative affect local fuel imports and energy security (SKYQ)?

Sky Quarry aims to increase in-state crude production and refining, which could reduce reliance on imported fuels. According to Sky Quarry, Nevada currently imports over 90% of its transportation fuels, much from supply-constrained California, highlighting potential energy security benefits.

What production potential does Sky Quarry see in Railroad Valley to support SKYQ’s growth?

Sky Quarry sees scope for wells comparable to past Railroad Valley output. According to Sky Quarry, wells in the basin once produced about 5,000 barrels per day, and the company believes similarly productive wells remain possible with further development.

How is Sky Quarry working with regional producers in Nevada’s Railroad Valley (SKYQ)?

Sky Quarry is assisting regional producers in bringing more wells online in Railroad Valley. According to Sky Quarry, producers are evaluating expansion opportunities, and the company is positioning Foreland Refinery to process additional local crude that new drilling could deliver.