WOODS CROSS, UT - October 26, 2026 - Sky Quarry Inc. (Nasdaq: SKYQ), an energy infrastructure company focused on domestic refining and resource development, has announced that refined petroleum production is underway at its Eagle Springs Refinery near Ely, Nevada. Operated by wholly owned subsidiary Foreland Refining Corporation, the SKYQ refinery produces diesel and distillate fuels, vacuum gas oil, naphtha, and liquid paving asphalt.
Production follows the SKYQ receipt of its Nevada air permit in September, completion of refinery repairs and upgrades, and successful restart. With production underway, SKYQ is focused on increasing throughput, expanding product sales, and generating operating cash flow.
Diesel Market Opportunity
Salt Lake City diesel rack prices indicated a crack spread of approximately $133 to $136 per barrel as of October 21, 2026, compared with approximately $33 per barrel in January, which represents an increase of about 300%.
The lower wholesale diesel price used in the October comparison was approximately $231 per barrel. Strong regional diesel pricing presents an opportunity for Sky Quarry as refinery throughput increases.
SKYQ production begins against a favorable diesel market backdrop. The U.S. Energy Information Administration has forecasted diesel crack spreads remaining above historical averages through 2027.
The $133 to $136 range is a regional pricing indicator calculated from market benchmarks. SKYQ actual refining margins will reflect its own feedstock acquisition costs, transportation, operating expenses, product yields, and realized sales prices.
Increasing Throughput and Commercial Sales
SKYQ Eagle Springs is Nevada’s only crude oil refinery, with a stated nameplate processing capacity of approximately 5,000 barrels of crude oil per day. The facility includes crude oil processing, product handling, and storage infrastructure designed to support a range of feedstocks and refined products.
The SKYQ refinery’s eastern Nevada location provides access to crude supplies from Nevada, Utah, and surrounding producing regions, with proximity to petroleum product markets throughout the Intermountain West. SKYQ intends to increase throughput progressively while strengthening operating reliability, securing additional crude supplies, optimizing product yields, and expanding commercial sales arrangements.
SKYQ is also evaluating opportunities to broaden its crude sourcing network, including increased use of regional supplies and potential future integration with its PR Spring resource development operations in Utah.
SKYQ Products Serving Western U.S. Energy Markets
Diesel and distillate fuels:Products for regional transportation, agriculture, mining, and industrial fuel markets.
Vacuum gas oil:An intermediate product marketed to refiners and industrial customers for further processing into transportation fuels and other petroleum products.
Naphtha:A light petroleum fraction used as feedstock for gasoline blending, further refining, and other industrial applications.
Liquid paving asphalt:Products for road construction, paving, and infrastructure maintenance.
These products provide multiple revenue opportunities and are expected to allow SKYQ to optimize its product mix based on feedstock characteristics, operating conditions, and regional commodity prices.
At the start of October SKYQ released an interview featuring Marcus Laun, Chief Executive Officer of Sky Quarry, hosted by Stuart Smith of SmallCapVoice.com.
The full interview is available at: https://youtu.be/Z_E9MExplnY
Advancement of $50 Million Nevada Oil Development Program to Support Lower-Cost Regional Feedstock
SKYQ has announced that it is advancing a proposed Nevada oil exploration and production initiative targeting up to $50 million of third-party investment in qualified exploration and production companies.
The initiative is intended to accelerate the development of new domestic crude oil resources while potentially providing SKYQ Nevada refining operations with access to lower-cost regional feedstock.
Under the contemplated structure, investments would be made directly in participating Nevada producers and projects rather than through the issuance of additional SKYQ common equity. The structure is therefore designed to support new drilling activity while avoiding dilution to existing SYKQ shareholders.
For SKYQ, locally produced crude could reduce transportation expenses and decrease reliance on feedstock sourced from more distant markets. Subject to successful drilling, acceptable crude quality and commercially favorable offtake terms, lower delivered feedstock costs could support higher refinery utilization, stronger operating margins and improved cash flow.
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Domestic Refining and Resource Development Company Producing Diesel, Vacuum Gas Oil, Naphtha and Liquid Paving Asphalt.
Also Developing Facility to Recover Hydrocarbons and Other Marketable Materials from Waste Asphalt Shingles and Oil-Bearing Resources.
300% Price Spike in Diesel Prices Since January Presents Huge Opportunity.
Restarted Nevada's Only Crude Oil Refinery with Nevada Air Permit Secured and Facility Work Completed.
Targeting Higher Throughput and Sales in Nevada with Nameplate Capacity of Approximately 5,000 Barrels of Crude Oil Per Day
Proprietary ECOSolv Technology is Diverting Waste from Landfills, Reducing Emissions and Pursuing a Waste-to-Energy Model.
New CEO Interview Highlighting Nevada Refinery Restart, Growth Strategy and Path to Increased Production.
Advancing Proposed Nevada Oil Exploration and Production Initiative for up to $50 million of Third-Party Investment, Non-Dilutive to Shareholders.
Strategic Objective to Increase Regional Crude Availability, Reduce Delivered Feedstock Costs and Support Higher Refinery Utilization.
Recent Federal Permits and Estimate of 1.4 Billion Barrels of Oil Resources in Nevada Reinforce the State's Potential for Expanded Domestic Production.
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.
Mission:
Sky Quarry Inc. (Nasdaq: SKYQ) is an integrated energy solutions company focused on converting waste asphalt shingles into sustainable oil and other resources through its proprietary ECOSolv technology, while also operating refining assets. Sky Quarry is revolutionizing asphalt shingle recycling, diverting waste from landfills, reducing emissions, and pursuing a waste-to-energy model.
skyquarry.com
The Sky Quarry vision is to become a premier products sales company committed to sustainable energy practices while maximizing profit margins and creating value for shareholders and customers.
Sky Quarry Inc. was incorporated in the state of Delaware on April 22, 2020. seekingalpha.com
For more information on SKYQ visit: https://skyquarry.com
Email: ir@skyquarry.com or shareholdercommunity@skyquarry.com Phone: (424) 394-1090 Country: United States
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Media Contact
Company Name: Sky Quarry Inc. (Nasdaq: SKYQ)
Contact Person: Marcus Laun, CEO
Email: Send Email
Phone: (424) 394-1090
Address:707 W. 700 S. Suite 101
City: Woods Cross
State: UT 84087
Country: United States
Website: https://skyquarry.com/
