Sky Quarry Unlocks Strategic Value at 5,000 Barrels-Per-Day Foreland Refinery with Completion of High-Impact System Upgrades

Rhea-AI Summary

Sky Quarry (NASDAQ:SKYQ) announced completion of high-impact operational upgrades at its Foreland Refinery, the only permitted refinery in Nevada with permitted capacity up to 5,000 barrels per day and an estimated replacement value of about $70 million. Upgrades included boiler system work, vacuum unit condenser replacements, process piping and tank repairs, and restoration of the water-oil separation system.

Company says these improvements boost reliability, uptime, throughput capability and readiness to serve constrained western fuel markets, supporting Nevada industries amid shifting regional supply dynamics and the planned April 2026 Benicia refinery offline event.

Positive

• Permitted capacity of 5,000 barrels per day at Foreland
• Completed major boiler and vacuum unit condenser upgrades improving reliability
• Estimated replacement value of approximately $70 million indicating high-barrier asset
• Upgrades aim to increase throughput capability and uptime for sustained production

Negative

• Operations concentrated in a single Nevada refinery with 5,000 bpd permitted capacity
• Asset operates within a supply-constrained, logistically complex regional fuel market

News Market Reaction

+17.50%

11 alerts

+17.50% News Effect

+20.6% Peak in 1 hr 52 min

+$2M Valuation Impact

$11M Market Cap

0.3x Rel. Volume

On the day this news was published, SKYQ gained 17.50%, reflecting a significant positive market reaction. Argus tracked a peak move of +20.6% during that session. Our momentum scanner triggered 11 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $2M to the company's valuation, bringing the market cap to $11M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Foreland capacity: 5,000 barrels per day Foreland replacement value: $70 million Power capacity: 7 MW +5 more

8 metrics

Foreland capacity 5,000 barrels per day Permitted refinery capacity in Nevada

Foreland replacement value $70 million Estimated replacement value of Foreland Refinery

Power capacity 7 MW Gas turbine generation at PR Spring facility

Power price illustration $0.05 per kWh Illustrative delivered power pricing from RFP release

PR Spring facility cost $50 million Approximate cost of PR Spring facility design

ATM size $4,700,000 At-the-market equity program with Cantor Fitzgerald

ATM commission 3.0% Commission on gross proceeds under ATM agreement

Shelf capacity $1,000,000,000 Form S-3 shelf registration statement filed Nov 21, 2025

Market Reality Check

Price: $0.2910 Vol: Volume 1,149,731 is at a ...

low vol

$0.2910 Last Close

Volume Volume 1,149,731 is at a relative level of 0.07x the 20-day average 17,127,560, indicating subdued trading ahead of this news. low

Technical Shares at $0.34 were trading below the 200-day moving average of $0.55 and about 82.47% under the 52-week high of $1.94 prior to this announcement.

Peers on Argus

SKYQ was down 1.16% while momentum data showed only one peer (BATL) moving, and ...

1 Down

SKYQ was down 1.16% while momentum data showed only one peer (BATL) moving, and it was down, with no peers moving in the same direction. Broader sector peers showed mixed moves from -39.67% (CGBS) to +17.89% (SLNG), pointing to stock-specific rather than coordinated sector trading.

Historical Context

5 past events · Latest: Jan 15 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 15	Board refresh	Positive	-5.0%	Appointment of three independent directors expanding AI and capital markets expertise.
Jan 13	Asset monetization	Positive	-10.6%	RFP to monetize <b>7 MW</b> gas turbine power capacity at PR Spring facility.
Oct 22	Tokenization progress	Positive	-2.9%	Progress on real‑world asset tokens and exchange for oil‑linked assets.
Sep 30	Digital treasury plan	Positive	+36.0%	Digital asset treasury strategy with up to <b>$100M</b> capital authorization.
Sep 11	Leadership change	Positive	+0.2%	Co‑founder Marcus Laun named interim CEO with focus on tokenization strategy.

Pattern Detected

Recent history shows mixed reactions: several strategic or asset-focused announcements saw negative price reactions, while the digital asset treasury strategy in Sep 2025 coincided with a strong positive move.

Recent Company History

Over the past six months, Sky Quarry has focused on governance, digital asset strategies, and asset monetization. Board refresh actions in Nov 2025 and their January announcement were followed by modest to negative price moves. Initiatives around real‑world asset tokenization and a digital asset treasury strategy in Sep–Oct 2025 framed a shift toward capital markets innovation, with the Sep 30 strategy coinciding with a 36% gain. The January 7 MW power monetization RFP saw a negative reaction, underscoring inconsistent market responses to strategic updates versus today’s refinery upgrade news.

Regulatory & Risk Context

Active S-3 Shelf · $1,000,000,000

Shelf Active

Active S-3 Shelf Registration 2025-11-21

$1,000,000,000 registered capacity

An effective Form S-3 shelf filed on Nov 21, 2025 allows Sky Quarry to offer up to $1,000,000,000 of various securities over time, and a $4,700,000 at-the-market equity program under this shelf was detailed in a Jan 12, 2026 424B5 prospectus, highlighting ongoing equity financing capacity and potential dilution.

Market Pulse Summary

The stock surged +17.5% in the session following this news. A strong positive reaction aligns with t...

Analysis

The stock surged +17.5% in the session following this news. A strong positive reaction aligns with the operational significance of upgrading a 5,000 barrels-per-day refinery in a constrained Nevada fuel market. However, Sky Quarry’s history shows mixed market responses to strategic updates, and its capital structure includes a $1,000,000,000 shelf and a $4,700,000 ATM program that can add equity supply. Prior news sometimes saw price givebacks, so sustainability has not been consistent.

Key Terms

barrels per day, at-the-market stock sales program, Form S-3 shelf registration statement, prospectus supplement, +4 more

8 terms

barrels per day technical

"With permitted capacity of up to 5,000 barrels per day and an estimated"

Barrels per day is a measure of how much crude oil or other petroleum liquids are produced, processed, or transported each day, using the standard oil barrel unit (42 U.S. gallons). Investors use it to gauge a company’s or facility’s output capacity and potential revenue—think of it like cars produced per day at a factory: higher daily output usually means more sales and cash flow, while declines can signal lower income or supply constraints.

at-the-market stock sales program financial

"creating an at-the-market stock sales program of up to"

A at-the-market (ATM) stock sales program lets a company sell newly issued shares directly into the open market at whatever the current trading price is, using a broker over time rather than in one large block. It matters to investors because it provides the company with a flexible way to raise cash—like turning a faucet on and off—while gradually adding shares into circulation, which can dilute existing holdings and put downward pressure on the stock price if many shares are sold.

Form S-3 shelf registration statement regulatory

"under Sky Quarry’s Form S-3 shelf registration statement that was declared"

A Form S-3 shelf registration statement is an SEC filing that lets an eligible public company register securities once and sell them later, in pieces, without repeating the full review process. Think of it like pre-listing items in a store’s inventory so they can be put on sale quickly; for investors it matters because it gives the company fast access to raise cash, which can dilute existing shares or be used for growth or debt repayment.

prospectus supplement regulatory

"with a related prospectus supplement filed to cover the at-the-market offering."

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.

going concern financial

"a going concern warning from the auditor, past-due debt of approximately"

A going concern is a business that is expected to continue its operations and meet its obligations for the foreseeable future, rather than shutting down or selling off assets. This assumption matters to investors because it indicates stability and ongoing profitability, making the business a more reliable investment. Think of it as believing a restaurant will stay open and serve customers, rather than closing down suddenly.

convertible debt financial

"past-due debt of approximately $6.7 million including convertible debt as of"

A convertible debt is a loan a company takes that gives the lender the option to swap the owed money for a set number of the company’s shares instead of getting cash back. It matters to investors because it can change who owns the company and how much their shares are worth: if lenders convert, existing shareholders can be diluted, but conversion can also signal confidence and reduce a company’s cash pressure — like getting a coupon that can be redeemed for store ownership rather than a refund.

warrant liability financial

"Other items: inventory declined to $1,352,741; warrant liability revalued to"

Warrant liability is the financial obligation a company records when it grants warrants—special options giving the holder the right to buy company shares at a set price in the future. It matters to investors because changes in this liability can affect a company's reported earnings and overall financial health, similar to how a pending contract can influence a company's future value.

shelf registration regulatory

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

Shelf registration is when a company gets permission ahead of time to sell new stocks or bonds over a period of time instead of all at once. It matters to investors because it lets a company raise money quickly when needed, but it can also change the value of existing shares if many new ones are sold.

AI-generated analysis. Not financial advice.

Execution program advances asset readiness within a constrained regional market

WOODS CROSS, UT / ACCESS Newswire / January 27, 2026 / Sky Quarry Inc. (NASDAQ:SKYQ), an integrated energy solutions company transforming the waste recycling industry, today announced the completion of a series of high-impact operational upgrades at its Foreland Refinery.

Foreland stands as a rare energy asset in the western United States as the only permitted refinery in the State of Nevada, operating within a supply-constrained and logistically complex regional fuel market. With permitted capacity of up to 5,000 barrels per day and an estimated replacement value of approximately $70 million, Foreland represents high-barrier infrastructure that would be difficult to replicate today. The refinery supplies fuel to critical Nevada industries, including precious metals mining and lithium production.

The completed upgrades significantly enhance refinery reliability, uptime, and operational readiness. As a result, Sky Quarry is now uniquely positioned to capture outsized value from tightening regional fuel markets, expand operating leverage, and convert a scarce refining asset into meaningful, durable cash-flow potential for shareholders.

The improvements address core systems across the facility, including major boiler system upgrades, vacuum unit condenser replacements, critical process piping replacements, tank system repairs, and restoration of the water and oil separation system. Collectively, these enhancements materially improve durability, throughput capability, and readiness for sustained production.

As infrastructure scarcity in western fuel markets continues to intensify, Sky Quarry believes these completed upgrades enhance Foreland's strategic relevance, operational resilience, and long-term value creation potential.

"As the only active refinery in Nevada, the work completed at Foreland strengthens the asset to support regional demand when market conditions require it," said Marcus Laun, CEO of Sky Quarry Inc. "With shifting supply dynamics across California, Nevada, and Utah, including the Benicia refinery in California scheduled to come offline in April 2026, current market indicators point to high demand this summer season. We believe Foreland is well positioned to respond."

About Sky Quarry Inc.

Sky Quarry Inc. (NASDAQ:SKYQ) is an oil production and refining company that operates the Foreland Refinery, a regional facility producing diesel, vacuum gas oil (VGO), naphtha, and liquid paving asphalt from crude oil sourced from Nevada and Utah. The Company is also advancing development-stage environmental remediation operations at its PR Spring facility in eastern Utah, focused on technologies designed to recover hydrocarbons from waste asphalt shingles and oil-saturated sands and soils. For more information, please visit skyquarry.com.

Forward-Looking Statements

This press release may include ''forward-looking statements.'' All statements pertaining to our future financial and/or operating results, future events, or future developments may constitute forward-looking statements. The statements may be identified by words such as "expect," "look forward to," "anticipate," "intend," "plan," "believe," "seek," "estimate," "will," "project," or words of similar meaning. Such statements are based on the current expectations and certain assumptions of our management, of which many are beyond our control. These are subject to a number of risks, uncertainties, and factors, including but not limited to those described in our disclosures. Should one or more of these risks or uncertainties materialize or should underlying expectations not occur or assumptions prove incorrect, actual results, performance, or our achievements may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. We neither intend, nor assume any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. You are urged to carefully review and consider any cautionary statements and the Company's other disclosures included in the Company's public SEC filings, including the statements made under the heading "Risk Factors" and elsewhere in the Company's Form 10-K as filed with the SEC on March 31, 2025, and all amendments thereto, as well as the Company's Form 10-Q as filed with the SEC on November 14, 2025. Forward-looking statements speak only as of the date of the document in which they are contained.

Investor Relations

Jennifer Standley
Director of Investor Relations
Ir@skyquarry.com

Company Website

www.skyquarry.com

SOURCE: Sky Quarry

View the original press release on ACCESS Newswire

FAQ

What upgrades did Sky Quarry (SKYQ) complete at the Foreland Refinery on January 27, 2026?

Completed work includes boiler system upgrades, vacuum unit condenser replacements, process piping and tank repairs, and restoration of the water-oil separation system.

How much capacity does Foreland Refinery have and what is its replacement value (SKYQ)?

Foreland has permitted capacity up to 5,000 barrels per day with an estimated replacement value of about $70 million.

Why do Sky Quarry executives say the Foreland upgrades matter for Nevada fuel supply (SKYQ)?

Company says upgrades improve reliability, uptime, and throughput, positioning Foreland to serve regional demand in a constrained market.

Does the Jan 27, 2026 announcement mention regional supply changes affecting SKYQ?

Yes; the company referenced shifting supply dynamics and noted the Benicia refinery is scheduled to go offline in April 2026.

Which Nevada industries does Foreland supply that Sky Quarry (SKYQ) highlighted?

The refinery supplies fuel to critical Nevada industries including precious metals mining and lithium production.