Pyramid Oil Company Reports 47% Increase in Oil & Gas Revenue for Fiscal 2008

Market Wire, April, 2009

                            Pyramid Oil Company
                         Statements of Operations

                               Three months ended     Twelve months ended
                                  December 31,           December 31,
                            ----------------------- -----------------------
                               2008        2007        2008        2007
                            ----------- ----------- ----------- -----------

REVENUES:
  Oil and gas sales         $   898,427 $ 1,397,822 $ 6,610,628 $ 4,502,855
  Gain on sale of fixed
   assets                             0       1,454         500     441,927
                            ----------- ----------- ----------- -----------
                                898,427   1,399,276   6,611,128   4,944,782
                            ----------- ----------- ----------- -----------
COSTS AND EXPENSES:
  Operating expenses            508,614     422,055   1,941,888   1,611,269
  Exploration costs                   0           0     -28,812       6,687
  General and
   administrative               428,832     208,132   1,169,191     924,746
  Taxes, other than income
   and payroll taxes             32,124      32,997     131,215     111,909
  Provision for depletion,
   depreciation and
   amortization                 420,924     128,251     944,168     460,804
  Valuation allowances        1,162,379       3,324   1,162,379       3,324
  Accretion expense               2,364       5,548      68,832      22,135
  Other costs and expenses       26,875       5,177     128,090      36,818
                            ----------- ----------- ----------- -----------
                              2,582,112     805,484   5,516,951   3,177,692
                            ----------- ----------- ----------- -----------
OPERATING INCOME             -1,683,685     593,792   1,094,177   1,767,090
                            ----------- ----------- ----------- -----------

OTHER INCOME (EXPENSE):
  Interest income                24,120      21,950      88,792      85,003
  Other income                    4,400       3,600      28,431      19,886
  Interest expense                 -472         104      -2,235      -1,768
                            ----------- ----------- ----------- -----------
                                 28,048      25,654     114,988     103,121
                            ----------- ----------- ----------- -----------
INCOME BEFORE INCOME
 TAX PROVISION               -1,655,637     619,446   1,209,165   1,870,211
  Income tax provision
   (benefit)
    Current                      73,458     192,075     312,710     375,150
    Deferred                   -796,245           0    -617,245           0
                            ----------- ----------- ----------- -----------
                               -722,787     192,075    -304,535     375,150
                            ----------- ----------- ----------- -----------
NET INCOME                  $  -932,850 $   427,371 $ 1,513,700 $ 1,495,061
                            =========== =========== =========== ===========
EARNINGS  PER COMMON SHARE
  Basic income per common
   share                    $     -0.20 $      0.09 $      0.32 $      0.32
                            =========== =========== =========== ===========
  Diluted income per
   common share             $     -0.20 $      0.09 $      0.32 $      0.32
                            =========== =========== =========== ===========

Weighted average number
 of common shares
 outstanding                  4,677,728   4,677,728   4,677,728   4,677,728
                            =========== =========== =========== ===========
Diluted average number of
 common shares outstanding    4,713,055   4,677,728   4,713,055   4,677,728
                            =========== =========== =========== ===========




                            Pyramid Oil Company
                               BALANCE SHEETS

                                  ASSETS

                                                  December 31, December 31,
                                                      2008         2007
                                                  (Unaudited)   (Audited)
                                                  ------------ ------------

CURRENT ASSETS:
  Cash                                            $  1,793,563 $    618,448
  Short-term investments                             2,789,099    1,478,979
  Trade accounts receivable                            213,588      643,340
  Crude oil inventory                                   82,025       71,298
  Deferred income taxes                                108,000            0
  Prepaid expenses and other assets                    186,353      173,164
                                                  ------------ ------------

      TOTAL CURRENT ASSETS                           5,172,628    2,985,229
                                                  ------------ ------------

PROPERTY AND EQUIPMENT, at cost
  Oil and gas properties and equipment
   (successful efforts method)                      15,755,472   14,734,929
  Capitalized asset retirement costs                   382,550      310,579
  Drilling and operating equipment                   2,109,993    2,050,556
  Land, buildings and improvements                   1,065,371    1,010,847
  Automotive, office and other property and
   equipment                                         1,162,324    1,141,451
                                                  ------------ ------------

                                                    20,475,710   19,248,362
  Less: accumulated depletion, depreciation,
   amortization and valuation allowance            -16,147,157  -14,040,610
                                                  ------------ ------------

                                                     4,328,553    5,207,752
                                                  ------------ ------------
OTHER ASSETS
  Deposits                                             250,000      250,000
  Deferred income taxes                                509,245            0
  Other Assets                                          17,013       17,013

                                                  ------------ ------------

                                                  $ 10,277,439 $  8,459,994
                                                  ============ ============




                            Pyramid Oil Company
                               BALANCE SHEETS

                     LIABILITIES AND STOCKHOLDERS' EQUITY

                                                  December, 31 December 31,
                                                      2008         2007
                                                  (Unaudited)   (Audited)
                                                  ------------ ------------

CURRENT LIABILITIES:
  Accounts payable                                $     40,820 $    108,500
  Accrued professional fees                            130,261       54,165
  Accrued taxes, other than income taxes                76,222       61,684
  Accrued payroll and related costs                     50,451       57,647
  Accrued royalties payable                            132,472      212,916
  Accrued insurance                                     59,096       65,999
  Accrued income taxes                                 239,815      145,815
  Current maturities of long-term debt                  23,901       26,868
                                                  ------------ ------------

      TOTAL CURRENT LIABILITIES                        753,038      733,594
                                                  ------------ ------------

LONG-TERM DEBT, net of current maturities               20,640       44,542
                                                  ------------ ------------

DEFERRED TAXES                                               0            0
                                                  ------------ ------------

LIABILITY FOR SHARE BASED COMPENSATION                       0       67,000
                                                  ------------ ------------

LIABILITY FOR ASSET RETIREMENT OBLIGATION            1,151,706    1,010,903
                                                  ------------ ------------

COMMITMENTS

STOCKHOLDERS' EQUITY:
  Preferred stock-no par value;
   10,000,000 authorized shares;
   no shares issued or outstanding                           0            0
  Common stock-no par value;
   50,000,000 authorized shares;
   4,677,728 shares issued and
   outstanding                                       1,306,010    1,071,610
  Retained earnings                                  7,046,045    5,532,345
                                                  ------------ ------------

                                                     8,352,055    6,603,955
                                                  ------------ ------------

                                                  $ 10,277,439 $  8,459,994
                                                  ============ ============