Pyramid Oil Company Announces Fourth Quarter and Full-Year Financial Results

BAKERSFIELD, CA--(Marketwire - March 31, 2008) - Pyramid Oil Company (AMEX: PDO) today announced financial results for its fourth quarter and full fiscal year ended December 31, 2007.

Fourth quarter revenue increased 61% to $1,399,276 versus $868,514 in the fourth quarter of fiscal 2006. Operating income was $593,792 versus a loss from operations of $240,154 in the same quarter a year ago. Net income was $427,371, or $0.11 per diluted share, versus a net loss of $33,313, or $0.01 per diluted share, in the comparable year-ago quarter. The Company's improved fourth quarter financial performance is primarily attributable to a sharp increase in revenue from oil and gas sales.

John Alexander, president and CEO, said, "We are encouraged by the improved strength of our financial performance, and by the steps we have taken to position Pyramid for continued success during the coming year. We have been very active in our Carneros Creek field, where we recently completed drilling efforts on a new well and have been enhancing the performance of several older wells. We recently completed work-over programs on four previously drilled wells in the field, and have seen significant improvements in daily oil production from each. We are now evaluating additional wells in the area on which we can perform similar fracing stimulation."

Alexander added, "During the coming year, we intend to drill additional wells in our California fields, as well as in Texas, where we are participating with a joint venture group in a natural gas prospect. During recent testing of the initial Texas well, excellent gas shows were encountered, and post-frac testing indicated natural gas rates of more than 4 million cubic feet per day. The well has been shut in while we await installation of a 3.8-mile gas sales pipeline, and the JV group now expects to commence gas sales by mid-year."

Pyramid owns a gross 12.5% working interest (before payout) in the Texas prospect. The JV also holds oil and gas leases on approximately 5,700 contiguous acres surrounding the initial well, and plans to commence additional drilling operations on the acreage shortly after completion of the gas sales pipeline.

For the full-fiscal year, Pyramid reported revenue of $4,944,782, an increase of 25% versus revenue of $3,957,588 in fiscal 2006. Fiscal 2007 revenue included a gain of $441,927 on the sale of fixed assets. Operating income advanced 92% to $1,767,090 from $922,695 in 2006, and net income increased 58% to $1,495,061, or $0.40 per diluted share, from $948,872, or $0.25 per diluted share, in the prior year.

Pyramid ended fiscal 2007 with cash and short-term investments of $2,097,427, working capital of $2,251,635, long-term debt of $44,542 and total stockholders' equity of $6,603,955.

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.

(Financial tables follow)

                            Pyramid Oil Company
                         Statements of Operations


                              Three months ended      Twelve months ended
                                 December 31,            December 31,
                            ----------------------- -----------------------
                               2007        2006        2007        2006
                            -----------  ---------- ----------- -----------

REVENUES:
    Oil and gas sales         1,397,822     868,514 $ 4,502,855 $ 3,957,588
    Gain on sale of fixed
     assets                       1,454           0     441,927           0
                            -----------  ---------- ----------- -----------

                              1,399,276     868,514   4,944,782   3,957,588
                            -----------  ---------- ----------- -----------

COSTS AND EXPENSES:
    Operating expenses          422,055     425,117   1,611,269   1,538,227
    Exploration Costs                 0     348,132       6,687     348,132
    General and
     administrative             208,132     165,357     924,746     637,120
    Taxes, other than
     income and payroll
     taxes                       32,997      21,457     111,909      81,712
    Provision for
     depletion, depreciation
     and amortization           131,575     111,659     464,128     322,909
    Accretion expense             5,548       5,004      22,135      20,343
    Other costs and
     expenses                     5,177      31,942      36,818      86,450
                            -----------  ---------- ----------- -----------

                                805,484   1,108,668   3,177,692   3,034,893
                            -----------  ---------- ----------- -----------

OPERATING INCOME                593,792    -240,154   1,767,090     922,695
                            -----------  ---------- ----------- -----------


OTHER INCOME (EXPENSE):
    Interest income              21,950      18,475      85,003      67,988
    Other income                  3,600      28,600      19,886      41,219
    Interest expense                104        -434      -1,768      -7,205
                            -----------  ---------- ----------- -----------

                                 25,654      46,641     103,121     102,002
                            -----------  ---------- ----------- -----------
INCOME BEFORE INCOME
 TAX PROVISION                  619,446    -193,513   1,870,211   1,024,697
    Income tax provision        192,075    -160,200     375,150      75,825
                            -----------  ---------- ----------- -----------

NET INCOME                  $   427,371  $  -33,313 $ 1,495,061 $   948,872
                            ===========  ========== =========== ===========

BASIC INCOME
 PER COMMON SHARE           $      0.11  $    -0.01 $      0.40 $      0.25
                            ===========  ========== =========== ===========

DILUTED INCOME
 PER COMMON SHARE           $      0.11  $    -0.01 $      0.40 $      0.25
                            ===========  ========== =========== ===========

    Weighted average number
     of common shares
     outstanding              3,741,721   3,741,721   3,741,721   3,741,721
                            ===========  ========== =========== ===========



                             PYRAMID OIL COMPANY
                                BALANCE SHEETS

                                    ASSETS


                                                 December 31,  December 31,
                                                    2007          2006
                                                 (Unaudited)   (Unaudited)
                                                ------------- -------------
CURRENT ASSETS:
  Cash                                          $     618,448 $     619,001
  Short-term investments                            1,478,979     1,450,910
  Trade accounts receivable                           643,340       324,495
  Interest receivable                                   2,251             0
  Crude oil inventory                                  71,298        56,539
  Prepaid expenses                                    170,914       152,899
  Income taxes receivable                                   0       193,130
                                                ------------- -------------

         TOTAL CURRENT ASSETS                       2,985,229     2,796,974
                                                ------------- -------------

PROPERTY AND EQUIPMENT, at cost
  Oil and gas properties and equipment
   (successful efforts method)                     14,734,929    12,891,756
  Capitalized asset retirement costs                  310,579       304,199
  Drilling and operating equipment                  2,050,556     2,008,397
  Land, buildings and improvements                  1,010,847       978,702
  Automotive, office and other
   property and equipment                           1,141,451     1,068,670
                                                ------------- -------------

                                                   19,248,362    17,251,724
  Less: accumulated depletion, depreciation,
   amortization and valuation allowance           -14,040,610   -13,620,171
                                                ------------- -------------

                                                    5,207,752     3,631,553
                                                ------------- -------------
OTHER ASSETS
  Deposits                                            250,000       250,000
  Other Assets                                          7,380         7,380
  Assets held for resale                                9,633         9,633

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

                                                $   8,459,994 $   6,695,540
                                                ============= =============



                            PYRAMID OIL COMPANY
                              BALANCE SHEETS

                   LIABILITIES AND STOCKHOLDERS' EQUITY



                                                 December 31,  December 31,
                                                     2007          2006
                                                 (Unaudited)   (Unaudited)
                                                ------------- -------------

CURRENT LIABILITIES:
  Accounts payable                              $     108,500 $      69,060
  Accrued professional fees                            54,165        50,114
  Accrued taxes, other than income taxes               61,684        45,570
  Accrued payroll and related costs                    57,647        60,374
  Accrued royalties payable                           212,916       136,826
  Accrued insurance                                    65,999        62,857
  Accrued income taxes                                145,815             0
  Accrued termination costs                                 0       142,157
  Current maturities of long-term debt                 26,868        25,965
                                                ------------- -------------

         TOTAL CURRENT LIABILITIES                    733,594       592,923
                                                ------------- -------------

LONG-TERM DEBT, net of current maturities              44,542        11,334
                                                ------------- -------------

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

LIABILITY FOR ASSET RETIREMENT OBLIGATION           1,010,903       982,389
                                                ------------- -------------

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; 3,741,721 shares
   issued and outstanding                           1,071,610     1,071,610
  Retained earnings                                 5,532,345     4,037,284
                                                ------------- -------------

                                                    6,603,955     5,108,894
                                                ------------- -------------


                                                $   8,459,994 $   6,695,540
                                                ============= =============

Contact Information: CONTACTS: John H. Alexander President and CEO Pyramid Oil Company 661-325-1000 Geoff High Principal Pfeiffer High Investor Relations, Inc. 303-393-7044