Sky Quarry Inc. (NASDAQ: SKYQ) has officially begun refined petroleum production at its Eagle Springs Refinery near Ely, Nevada. The refinery, operated by subsidiary Foreland Refining Corporation, produces diesel, distillate fuels, vacuum gas oil, naphtha, and liquid paving asphalt. This milestone follows the company's receipt of a Nevada air permit in September, along with the completion of refinery repairs and upgrades.
Marcus Laun, interim CEO of Sky Quarry, expressed enthusiasm about the production start, calling it a significant achievement for the company and its shareholders. He highlighted the refinery's role in producing essential products like diesel for transportation and industry, vacuum gas oil and naphtha for downstream markets, and asphalt for infrastructure. Laun emphasized the opportunity to generate meaningful revenue and cash flow as production increases.
The production launch comes at a favorable time for the diesel market. As of October 21, 2026, Salt Lake City diesel rack prices indicated a crack spread of approximately $133 to $136 per barrel, a dramatic increase from around $33 per barrel in January. The U.S. Energy Information Administration forecasts diesel crack spreads to remain above historical averages through 2027, presenting a strong market backdrop for Sky Quarry.
Eagle Springs, Nevada’s only crude oil refinery, has a nameplate processing capacity of approximately 5,000 barrels per day. Sky Quarry plans to progressively increase throughput while securing additional crude supplies and optimizing product yields. The company is also evaluating opportunities to broaden its crude sourcing network, including potential integration with its PR Spring resource development operations in Utah.