Exhibit 99.1

Sky Petroleum Announces a $2.0 Million Private Placement

AUSTIN, Texas--(BUSINESS WIRE)--October 12, 2011--Sky Petroleum, Inc. (OTCBB: SKPI), an oil and gas company with activities in Albania and the United Arab Emirates, announced today that it has agreed to the terms of a non-brokered private placement (the “Offering”) to raise US$2.0 million. The Company will issue 8,000,000 Class A Units (the “Class A Units”) at a price of US$0.25 per Unit.

Each Class A Unit consists of one share of common stock of the Company, par value US$0.001 (a “Common Share”) and one Class A Warrant (each, a “Class A Warrant”). Each Class A Warrant is exercisable to acquire one Class B Unit of the Company (a “Class B Unit”), at an exercise price of US$0.35 per Class B Unit for a period of one (1) year. Each Class B Unit consists of one share of Common Share of the Corporation, par value US$0.001 and one Class B Warrant (each, a “Clas