PYRAMID OIL COMPANY STATEMENTS OF OPERATIONS (UNAUDITED) Three months ended March 31, 2008 2007 ----------- ----------- REVENUES: $ 1,589,896 $ 826,180 ----------- ----------- COSTS AND EXPENSES: Operating expenses 422,806 362,663 Exploration costs -28,812 4,835 General and administrative 232,511 275,154 Taxes, other than income and payroll taxes 35,510 27,156 Provision for depletion, depreciation and amortization 162,820 97,670 Accretion expense 5,810 5,631 Other costs and expenses 19,552 8,692 ----------- ----------- 850,198 781,801 ----------- ----------- OPERATING INCOME 739,698 44,379 ----------- ----------- OTHER INCOME (EXPENSE): Interest income 22,077 23,789 Other income 9,662 3,600 Interest expense -641 -14 ----------- ----------- 31,098 27,375 ----------- ----------- INCOME (LOSS) BEFORE INCOME TAX PROVISION 770,796 71,754 Income taxes Current 91,625 13,825 Deferred -155,100 0 ----------- ----------- -63,475 13,825 ----------- ----------- NET INCOME $ 834,271 $ 57,929 =========== =========== BASIC INCOME PER COMMON SHARE $ 0.22 $ 0.02 =========== =========== DILUTED INCOME PER COMMON SHARE $ 0.22 $ 0.02 =========== =========== Weighted average number of common shares outstanding 3,741,721 3,741,721 PYRAMID OIL COMPANY BALANCE SHEETS ASSETS March 31, December 31, 2008 2007 (Unaudited) (Unaudited) ------------- ------------- CURRENT ASSETS: Cash $ 836,845 $ 618,448 Short-term investments 1,492,268 1,478,979 Trade accounts receivable 882,867 643,340 Employee loan receivable 1,200 0 Interest receivable 4,579 2,251 Crude oil inventory 80,785 71,298 Deferred taxes 56,000 0 Prepaid expenses 139,725 170,914 ------------- ------------- TOTAL CURRENT ASSETS 3,494,268 2,985,229 ------------- ------------- PROPERTY AND EQUIPMENT, at cost Oil and gas properties and equipment (successful efforts method) 15,422,676 14,734,929 Capitalized asset retirement costs 310,579 310,579 Drilling and operating equipment 2,073,137 2,050,556 Land, buildings and improvements 1,043,744 1,010,847 Automotive, office and other property and equipment 1,148,025 1,141,451 ------------- ------------- 19,998,161 19,248,362 Less: accumulated depletion, depreciation, amortization and valuation allowance -14,203,430 -14,040,610 ------------- ------------- 5,794,731 5,207,752 ------------- ------------- OTHER ASSETS Deposits 250,000 250,000 Deferred Taxes 99,100 0 Other Assets 7,380 7,380 Assets held for resale 9,633 9,633 ------------- ------------- $ 9,655,112 $ 8,459,994 ------------- ------------- PYRAMID OIL COMPANY BALANCE SHEETS LIABILITIES AND STOCKHOLDERS' EQUITY March 31, December 31, 2008 2007 (Unaudited) (Unaudited) ------------- ------------- CURRENT LIABILITIES: Accounts payable $ 513,836 $ 108,500 Accrued professional fees 43,500 54,165 Accrued taxes, other than income taxes 61,954 61,684 Accrued payroll and related costs 55,975 57,647 Accrued royalties payable 252,539 212,916 Accrued insurance 49,763 65,999 Accrued income taxes 92,753 145,815 Current maturities of long-term debt 25,800 26,868 ------------- ------------- TOTAL CURRENT LIABILITIES 1,096,120 733,594 ------------- ------------- LONG-TERM DEBT, net of current maturities 38,653 44,542 ------------- ------------- LIABILITY FOR SHARE BASED COMPENSATION 65,400 67,000 ------------- ------------- LIABILITY FOR ASSET RETIREMENT OBLIGATION 1,016,713 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; 3,741,721 shares issued and outstanding 1,071,610 1,071,610 Retained earnings 6,366,616 5,532,345 ------------- ------------- 7,438,226 6,603,955 ------------- ------------- $ 9,655,112 $ 8,459,994 ------------- -------------
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