Pyramid Oil Company Reports First Quarter Financial Results

Market Wire, May, 2009

                            PYRAMID OIL COMPANY
                         STATEMENTS OF OPERATIONS
                                (UNAUDITED)

                                                Three months ended
                                                     March 31,
                                                 2009        2008
                                              ----------- -----------
REVENUES:                                     $   594,045 $ 1,589,896
COSTS AND EXPENSES:
  Operating expenses                              351,350     422,806
  Exploration costs                                     0     -28,812
  General and administrative                      225,304     232,511
  Taxes, other than income and payroll taxes       48,298      35,510
  Provision for depletion,
   depreciation and amortization                  158,314     162,820
  Accretion expense                                 5,866       5,810
  Other costs and expenses                         24,171      19,552
                                              ----------- -----------

                                                  813,303     850,198
                                              ----------- -----------

OPERATING INCOME (LOSS)                          -219,258     739,698
                                              ----------- -----------

OTHER INCOME (EXPENSE):
  Interest income                                  26,475      22,077
  Other income                                      3,600       9,662
  Interest expense                                   -415        -641
                                              ----------- -----------

                                                   29,660      31,098
                                              ----------- -----------
INCOME (LOSS) BEFORE
 INCOME TAX PROVISION (BENEFIT)                  -189,598     770,796
  Income taxes
    Current                                      -103,383      91,625
    Deferred                                      103,000    -155,100
                                              ----------- -----------
                                                     -383     -63,475
                                              ----------- -----------

NET INCOME (LOSS)                             -$  189,215 $   834,271
                                              =========== ===========

BASIC INCOME (LOSS) PER COMMON SHARE          -$     0.04 $      0.18
                                              =========== ===========

DILUTED INCOME (LOSS) PER COMMON SHARE        -$     0.04 $      0.18
Weighted average number of
 common shares outstanding                      4,677,728   4,677,728
Diluted average number of
 common shares outstanding                      4,677,728   4,677,728
                                              =========== ===========



                            PYRAMID OIL COMPANY
                              BALANCE SHEETS

                                  ASSETS

                                               March 31,   December 31,
                                                  2009         2008
                                              (Unaudited)   (Audited)
                                              ------------ ------------
CURRENT ASSETS:
  Cash and cash equivalents                   $    959,369 $  1,793,563
  Short-term investments                         3,309,269    2,789,099
  Trade accounts receivable                        299,417      213,588
  Income taxes receivable                           25,555            0
  Crude oil inventory                               69,831       82,025
  Deferred income taxes                            112,000      108,000
  Prepaid expenses and other assets                158,164      186,353
                                              ------------ ------------

     TOTAL CURRENT ASSETS                        4,933,605    5,172,628
                                              ------------ ------------

PROPERTY AND EQUIPMENT, at cost
  Oil and gas properties and equipment
   (successful efforts method)                  15,845,056   15,755,472
  Capitalized asset retirement costs               382,550      382,550
  Drilling and operating equipment               2,109,993    2,109,993
  Land, buildings and improvements               1,065,371    1,065,371
  Automotive, office and other
   property and equipment                        1,162,324    1,162,324
                                              ------------ ------------

                                                20,565,294   20,475,710
  Less: accumulated depletion, depreciation,
   amortization and valuation allowance        -16,305,471  -16,147,157
                                              ------------ ------------

                                                 4,259,823    4,328,553
                                              ------------ ------------
OTHER ASSETS
  Deposits                                         250,000      250,000
  Deferred income taxes                            402,245      509,245
  Other Assets                                      17,013       17,013

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

                                              $  9,862,686 $ 10,277,439




                            PYRAMID OIL COMPANY
                              BALANCE SHEETS

                    LIABILITIES AND STOCKHOLDERS' EQUITY


                                               March 31,   December 31,
                                                  2009         2008
                                              (Unaudited)   (Audited)
                                              ------------ ------------
CURRENT LIABILITIES:
  Accounts payable                            $     67,282 $     40,820
  Accrued professional fees                        101,519      130,261
  Accrued taxes, other than income taxes            81,067       76,222
  Accrued payroll and related costs                 69,185       50,451
  Accrued royalties payable                        144,088      132,472
  Accrued insurance                                 40,480       59,096
  Accrued income taxes                                   0      239,815
  Current maturities of long-term debt              24,135       23,901
                                              ------------ ------------

     TOTAL CURRENT LIABILITIES                     527,756      753,038
                                              ------------ ------------

LONG-TERM DEBT, net of current maturities           14,518       20,640
                                              ------------ ------------

LIABILITY FOR ASSET RETIREMENT OBLIGATION        1,157,572    1,151,706
                                              ------------ ------------

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    1,306,010
  Retained earnings                              6,856,830    7,046,045
                                              ------------ ------------

                                                 8,162,840    8,352,055
                                              ------------ ------------

                                              $  9,862,686 $ 10,277,439
                                              ============ ============