Sky Quarry Inc. (NASDAQ: SKYQ) announced a crude oil drilling and production initiative in Nevada's Railroad Valley, the state's primary oil-producing region. The company plans to refine the crude at its Foreland Refinery, Nevada's only operating refinery.

According to a 2025 U.S. Geological Survey assessment, Nevada holds approximately 1.4 billion barrels of undiscovered, technically recoverable oil beneath federal lands, ranking third nationally behind Alaska and New Mexico. Despite this resource, Nevada imports more than 90% of its transportation fuels, with much coming from California.

Sky Quarry is working to assist regional producers in bringing additional wells online and increasing production of Nevada crude. The company is positioning its Foreland Refinery to process the additional local crude that expanded drilling efforts could deliver.

"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.

The Foreland Refinery produces diesel, vacuum gas oil, naphtha and liquid paving asphalt for western U.S. markets. The facility is positioned to benefit from Railroad Valley's limited pipeline access to outside markets, making local refining more economical.

Michael D. O'Neal, President of Grant Canyon Oil & Gas, LLC and Saddle Rim Energy (Texas), LLC, stated the prospects being developed in Nevada offer attractive opportunities with long-lived reserves and shallow field decline rates.

Sky Quarry also operates development initiatives at PR Spring in Utah, focused on recovering hydrocarbons from oil-saturated materials using its ECOSolv process.