Sky Quarry Inc. (NASDAQ:SKYQ) stock fell in Tuesday’s premarket session after soaring nearly 63% on Monday, as traders took profits following the micro-cap stock’s sharp rally.
The pullback comes as early investors locked in gains after Monday’s surge, a common pattern for thinly traded micro-cap stocks that often experience elevated volatility after outsized moves.
Nears Refinery Production
The company said Monday it is preparing to begin production at its Foreland Refinery in Nevada, with operations expected to start in July.
Sky Quarry recently disclosed that it has approximately 10,000 barrels of inventory on-site and more than 100,000 barrels of storage capacity. The added capacity is expected to provide greater operational flexibility as production ramps up.
Management highlighted the strategic value of the refinery, noting that refining capacity has become increasingly limited, particularly across the Western United States.
What Sky Quarry Does And Why It Matters
Sky Quarry is a development-stage oil-producing and refining company focused on recycling waste asphalt shingles and remediating oil-saturated soils.
The company operates the Foreland Refinery, Nevada’s only operating refinery, producing key products such as diesel, vacuum gas oil, naphtha, and asphalt.
The recent news about entering production is crucial as it marks a significant shift for Sky Quarry, transitioning from preparation to active operations.
The transition positions the company to capitalize on its unique market position in a fuel-deficient region, potentially enhancing its financial performance and shareholder value.
Earlier in June, the company launched a crude oil drilling and production initiative in Nevada’s Railroad Valley and announced that it intends to refine that crude at its Foreland Refinery.
SKYQ Stock Price Activity: Sky Quarry shares were down 14.21% at $1.63 during premarket trading on Tuesday, according to Benzinga Pro data.
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