TLDR
SKYQ shares plunged 30.59% to $1.18 before rebounding 2.88% in premarket trade.
Sky Quarry signed a non-binding deal to help BioForce seek $25M in oil funding.
BioForce’s Nevada leases cover nearly 20,000 acres across two oil prospects.
Fox Mountain’s prospective recoverable oil estimate stands at 1.349B barrels.
Sky Quarry may explore crude supply for Eagle Springs if drilling succeeds.
Sky Quarry Inc. (SKYQ) stock plunged over 30% despite announcing a new financing agreement for Nevada oil development. The company signed a non-binding agreement with BioForce Nanosciences Holdings to help secure approximately $25 million for oil exploration. Meanwhile, the agreement supports Sky Quarry’s broader plans to expand regional oil production and strengthen its refining operations.
SKYQ Stock Drops 30% Despite Nevada Oil Financing Agreement
Sky Quarry Inc. shares plunged 30.59% to close at $1.18, shedding $0.52 during the previous trading session. However, the stock recovered 2.88% to $1.2140 in premarket trading as buying activity returned. The rebound followed substantial losses, although shares remained below their previous closing level.
Sky Quarry Inc., SKYQ
The company announced a letter of intent with BioForce to support financing for Nevada oil projects. Under the arrangement, Sky Quarry will introduce BioForce to potential funding sources after obtaining the company’s approval. BioForce will retain full authority to evaluate and reject financing proposals.
The agreement marks Sky Quarry’s second letter of intent under its Nevada Oil Development Program. The company launched the initiative in August 2026 with a target of $50 million in third-party investment. Furthermore, the program forms part of its wider Great Basin Energy Initiative.
BioForce Targets $25 Million for Nevada Oil Exploration
BioForce seeks approximately $25 million to support exploration, drilling, and development activities across its Nevada leases. The company controls approximately 19,957 acres of federal oil and gas leases in White River Valley. Its exploration plans cover two major prospects, Fox Mountain and South Lund.
BioForce previously submitted an independent resource assessment prepared by Ryder Scott Company in August 2026. The assessment estimated 8.085 billion barrels of original oil in place at Fox Mountain. It also identified approximately 1.349 billion barrels of technically recoverable prospective oil at the site.
South Lund holds estimated original oil resources of 2.932 billion barrels, according to the assessment. The report identified another 497 million barrels of technically recoverable prospective oil at South Lund. However, these unrisked estimates represent prospective resources rather than proven reserves, and Sky Quarry has not independently verified them.
Sky Quarry Explores Future Supply for Eagle Springs Refinery
Sky Quarry also plans to examine potential crude supply opportunities through its Foreland Refining subsidiary. Foreland operates the Eagle Springs Refinery near Ely, Nevada, providing a possible regional market for future production. A supply arrangement could reduce transportation distances and diversify the refinery’s crude sources.
BioForce must secure financing and establish commercial production before the companies can negotiate supply terms. Any future agreement would depend on crude quality, production volumes, transportation costs, and market pricing. Sky Quarry holds no preferential purchasing rights under the current arrangement.
The letter of intent carries a 180-day term and allows either company to terminate the arrangement. Sky Quarry will not provide financing, receive transaction fees, or control funds raised for BioForce’s development program. Furthermore, the agreement creates no binding financing or offtake obligations, leaving future transactions subject to separate negotiations
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