WOODS CROSS, Utah, Oct. 22, 2026 (GLOBE NEWSWIRE) -- Sky Quarry Inc. (NASDAQ: SKYQ) ("Sky Quarry" or the "Company"), an energy infrastructure company focused on domestic refining and resource development, today announced that refined petroleum production is underway at its Eagle Springs Refinery near Ely, Nevada. Operated by wholly owned subsidiary Foreland Refining Corporation, the refinery produces diesel and distillate fuels, vacuum gas oil, naphtha, and liquid paving asphalt.
Production follows the Company’s receipt of its Nevada air permit in September, completion of refinery repairs and upgrades, and successful restart. With production underway, Sky Quarry is focused on increasing throughput, expanding product sales, and generating operating cash flow.
"Moving from a refinery restart to actual petroleum production is a tremendous milestone for Sky Quarry and our shareholders," said Marcus Laun, interim Chief Executive Officer of Sky Quarry. "The plant is operating as expected. We are excited by the support we are getting from our community of suppliers and customers. The refinery operates in a niche within the larger regional petroleum market."
Laun continued, "Our refinery produces the products that keep the economy moving — diesel for transportation and industry, vacuum gas oil and naphtha for downstream markets, and asphalt for roads and infrastructure. We now have the opportunity to turn those products into meaningful revenue and cash flow while steadily increasing production."
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.
Production begins against a favorable diesel market backdrop. In its October 2026 Short-Term Energy Outlook, the U.S. Energy Information Administration forecasted diesel crack spreads remaining above historical averages through 2027.
The $133 to $136 range is a regional pricing indicator calculated from market benchmarks. Sky Quarry’s actual refining margins will reflect its own feedstock acquisition costs, transportation, operating expenses, product yields, and realized sales prices.
Pricing basis: The calculation uses October 21 Salt Lake City OPIS Low Rack GROSS and Rack Average GROSS diesel prices displayed by Flyers Energy of $5.4991 and $5.5633 per gallon, respectively, multiplied by 42 gallons per barrel, less a delayed December WTI futures quote of $97.86 per barrel observed at 2:35 p.m. Central time on October 21. The resulting differences of $133.10 and $135.80 per barrel are rounded. The rack postings and futures quote are as of different times.
Increasing Throughput and Commercial Sales
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 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. Sky Quarry intends to increase throughput progressively while strengthening operating reliability, securing additional crude supplies, optimizing product yields, and expanding commercial sales arrangements.
The Company 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. Management expects to provide additional updates as production volumes increase and commercial operations develop.
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 the Company to optimize its product mix based on feedstock characteristics, operating conditions, and regional commodity prices.
About Sky Quarry Inc.
Sky Quarry Inc. (NASDAQ: SKYQ) 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, the state's only crude oil refinery, producing diesel, vacuum gas oil, naphtha and liquid paving asphalt.
Sky Quarry is also developing its PR Spring facility in Utah, where the Company is advancing technologies for hydrocarbon recovery from oil-bearing resources and waste asphalt shingles.
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, which are intended to be covered by the safe harbor provisions created by the U.S. Private Securities Litigation Reform Act of 1995. These statements include, among other things, expectations, beliefs and plans concerning the Company’s operations, strategy, refinery throughput, production growth, future revenue and cash flow, product sales, operating margins, feedstock availability and pricing, customer demand and market conditions, financing activities and development of the Company's other assets. Forward-looking statements are not guarantees of future performance and can be identified by words such as “aim,” “could,” “evaluate,” “expect,” “intend,” “may,” “plan,” “potential,” “target,” “will” and other similar expressions.
Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied, including operational interruptions, equipment reliability, regulatory compliance, crude oil supply and pricing, refining margins, transportation costs, access to capital, market demand, competition, general economic conditions and other risks identified in the Company's filings with the U.S. Securities and Exchange Commission. The forward-looking statements contained in this press release are made as of the date hereof, and except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements.
Investor Relations Contact
Sky Quarry Inc. Email: ir@skyquarry.comWebsite: www.skyquarry.com
NEWS RELEASE TRANSMITTED BY Globe Newswire
