Pyramid Oil Company Reports First Quarter Financial Results

Market Wire, May, 2009

Pyramid Oil Company (NYSE Amex: PDO) today announced financial results for its first fiscal quarter ended March 31, 2009.

Revenue was $594,000 versus $1,590,000 in last year's first quarter. The decrease was largely due to lower average crude oil prices, which declined during the first quarter by 51%, or $52.76 per equivalent barrel (BOE), to $38.82 per BOE. This compares with an average price of $91.58 per BOE during last year's first quarter.

Pyramid reduced its operating expenses by 17% to $351,000 from $423,000 in the first quarter a year ago. The Company reported a loss from operations of $219,000 versus operating income of $740,000 in the first quarter a year ago. First quarter net loss was $189,000, or $0.04 per diluted share, versus net income of $834,000, or $0.18 per diluted share, in the comparable year-ago quarter.

John Alexander, president and CEO, said, "The dramatic decline in crude oil prices appears to have bottomed, and we are now seeing average prices that are well above those witnessed during the first quarter. While we cannot predict the future pricing environment, we have significant influence over the fundamental strength our Company. We believe we have effectively positioned Pyramid to weather the downturns and thrive when demand is strong. Our balance sheet includes more than $4.2 million in cash and cash equivalents, $4.4 million in working capital, and is free of long-term debt. Given our sound financial condition, we are actively evaluating opportunities to expand our asset portfolio, particularly in light of the more favorable valuations we are on seeing on oil and gas properties."

Mr. Alexander said additional progress has been made on the Company's Texas natural gas joint venture, and it is expected that a recently re-entered well will be on production before the end of the second quarter. He added that operations on Pyramid's core California fields are proceeding on plan.

About Pyramid Oil Company

Pyramid Oil Company has been in the oil and gas business continuously since incorporating in 1909. Pyramid acquires interests in land and producing properties through acquisition and lease, and then drills and/or operates crude or natural gas wells in an effort to discover or produce oil and/or natural gas. More information about the Company can be found at: http://www.pyramidoil.com .

Safe Harbor Statement

Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995, including statements regarding the completion and testing of wells. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. Factors that could cause or contribute to such differences include, but are not limited to the value of crude oil or the performance of wells.