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

Audio By Carbonatix

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

[email protected]

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