NEW YORK, June 4, 2026, 13:04 (EDT)
- Sky Quarry SKYQ stock fell 6.9% to $1.82 Thursday afternoon after its latest Nevada drilling update. Shares are down for June.
- Sky Quarry on Wednesday said it’s launching a crude oil drilling and production project out in Nevada’s Railroad Valley. The company plans to move the oil over to its Foreland Refinery for processing.
- The stock lagged the small-cap index. The iShares Russell 2000 ETF added about 1.3%. United States Oil Fund slipped almost 3.5%.
Sky Quarry Inc. shares fell in Thursday’s regular session. The micro-cap energy company is pressing forward with new drilling in Nevada to provide feedstock for its Foreland Refinery, still the state’s only working refinery.
The stock fell 6.9% to $1.82. Shares opened at $1.94 and touched $1.81 before edging higher. With a market cap near $8.7 million, the stock can be volatile in low volume.
Sky Quarry ended Wednesday down 10.96%, following another loss on Tuesday, according to Investing.com historical data. The stock has now fallen for more than one session, raising pressure after the drop.
Sky Quarry said June 3 it plans to begin drilling for oil and start production in Nevada’s Railroad Valley. The company says it will send crude to Foreland for refining. Sky Quarry said more than 90% of Nevada’s transportation fuel is imported.
Sky Quarry CEO Marcus Laun said Railroad Valley has the potential for “more wells with that kind of productivity,” referencing the area’s historic high output. Michael D. O’Neal, who leads Grant Canyon Oil & Gas and Saddle Rim Energy, said Nevada’s reserves are “long-lived” and fields see “shallow field decline rates.” ACCESS Newswire
The company points to a 2025 U.S. Geological Survey report that estimates 1,407.3 million barrels of undiscovered, technically recoverable oil on federal land in Nevada. That means oil not yet found but that could be produced using current technology, the U.S. Geological Survey says.
Resources took a backseat for investors on Thursday as attention moved to short-term results. Sky Quarry reported Q1 net sales of only $383 for 2026, a sharp plunge from $6.3 million a year ago. The company cited problems with crude suppliers and refinery repairs for the lower sales.
First-quarter net loss was $2.32 million, or 65 cents per share, compared with a loss of $3.33 million, or $1.25 a share, a year ago. Revenue stayed low as the asset restart wasn’t finished, so the smaller loss didn’t move the bigger picture.
Competition is in play. The U.S. Energy Information Administration said Phillips 66 plans to close its Wilmington refinery that processes 139,000 barrels a day. Valero also said it will stop refining at Benicia, which has 145,000 barrels a day capacity, by the end of April 2026. That could shift some supply dynamics for Sky Quarry in the area, but Phillips 66 and Valero are much bigger companies and have much higher market caps than Sky Quarry.
Risks are out in the open. In its most recent quarterly report, Sky Quarry flagged “material uncertainties” that could threaten its survival. The company said more cash is needed, whether from new debt, equity, or money from warrants. Any sale of stock could dilute shareholders. SEC
Sky Quarry is feeling financing pressure. The company tweaked its at-the-market program in April, switching sales agent duties from Cantor Fitzgerald to Muriel Siebert & Co.
SKYQ isn’t trading like a pure oil supply stock at the moment. Shares are moving as if this is a choppy turnaround. Investors want to see if Foreland restarts on time and whether Nevada drilling leads to actual oil, a partner, extra money or just another round of updates.
