Pyramid Oil Company Statements of Operations (Unaudited) Three months ended Nine months ended September 30, September 30, ----------------------- ----------------------- 2008 2007 2008 2007 ----------- ----------- ----------- ----------- REVENUES: Oil and gas sales $ 1,999,119 $ 1,168,440 $ 5,712,201 $ 3,105,033 Gain on sale of fixed assets 500 440,473 500 440,473 ----------- ----------- ----------- ----------- 1,999,619 1,608,913 5,712,701 3,545,506 ----------- ----------- ----------- ----------- COSTS AND EXPENSES: Operating expenses 548,991 417,901 1,433,274 1,189,214 Exploration costs 0 1,036 -28,812 6,687 General and administrative 298,759 265,685 740,359 716,614 Taxes, other than income and payroll taxes 42,481 30,301 99,091 78,912 Provision for depletion, depreciation and amortization 169,185 113,976 523,244 332,553 Accretion expense 54,847 5,466 66,468 16,587 Other costs and expenses 25,643 7,589 101,215 31,641 ----------- ----------- ----------- ----------- 1,139,906 841,954 2,934,839 2,372,208 ----------- ----------- ----------- ----------- OPERATING INCOME 859,713 766,959 2,777,862 1,173,298 ----------- ----------- ----------- ----------- OTHER INCOME (EXPENSE): Interest income 22,661 20,873 64,672 63,053 Other income 5,217 4,305 24,031 16,286 Interest expense -529 -75 -1,763 -1,872 ----------- ----------- ----------- ----------- 27,349 25,103 86,940 77,467 ----------- ----------- ----------- ----------- INCOME BEFORE INCOME TAX PROVISION 887,062 792,062 2,864,802 1,250,765 Income tax provision (benefit) Current -35,223 139,650 239,252 183,075 Deferred 218,000 0 179,000 0 ----------- ----------- ----------- ----------- 182,777 139,650 418,252 183,075 ----------- ----------- ----------- ----------- NET INCOME $ 704,285 $ 652,412 $ 2,446,550 $ 1,067,690 =========== =========== =========== =========== EARNINGS PER COMMON SHARE Basic and diluted income per common share $ 0.15 $ 0.14 $ 0.52 $ 0.23 =========== =========== =========== =========== Basic and diluted weighted average number of common shares outstanding 4,677,728 4,677,728 4,677,728 4,677,728 =========== =========== =========== =========== PYRAMID OIL COMPANY BALANCE SHEETS ASSETS September 30, December 31, 2008 2007 (Unaudited) (Audited) ------------- ------------- CURRENT ASSETS: Cash $ 1,956,085 $ 618,448 Short-term investments 2,271,080 1,478,979 Trade accounts receivable 653,024 643,340 Interest receivable 4,579 2,251 Crude oil inventory 83,184 71,298 Deferred income taxes 72,000 0 Prepaid expenses 54,175 170,913 ------------- ------------- TOTAL CURRENT ASSETS 5,094,127 2,985,229 ------------- ------------- PROPERTY AND EQUIPMENT, at cost Oil and gas properties and equipment (successful efforts method) 15,715,290 14,734,929 Capitalized asset retirement costs 378,065 310,579 Drilling and operating equipment 2,080,127 2,050,556 Land, buildings and improvements 1,063,140 1,010,847 Automotive, office and other property and equipment 1,162,324 1,141,451 ------------- ------------- 20,398,946 19,248,362 Less: accumulated depletion, depreciation, amortization and valuation allowance -14,563,854 -14,040,610 ------------- ------------- 5,835,092 5,207,752 ------------- ------------- OTHER ASSETS Deposits 250,000 250,000 Other Assets 7,380 7,380 Assets held for resale 9,633 9,633 ------------- ------------- $ 11,196,232 $ 8,459,994 ============= ============= PYRAMID OIL COMPANY BALANCE SHEETS LIABILITIES AND STOCKHOLDERS' EQUITY September 30, December 31, 2008 2007 (Unaudited) (Audited) ------------- ------------- CURRENT LIABILITIES: Accounts payable $ 88,385 $ 108,500 Accrued professional fees 71,790 54,165 Accrued taxes, other than income taxes 38,122 61,684 Accrued payroll and related costs 53,713 57,647 Accrued royalties payable 209,130 212,916 Accrued insurance 6,600 65,999 Accrued income taxes 166,357 145,815 Current maturities of long-term debt 23,670 26,868 ------------- ------------- TOTAL CURRENT LIABILITIES 657,767 733,594 ------------- ------------- LONG-TERM DEBT, net of current maturities 26,703 44,542 ------------- ------------- DEFERRED TAXES 251,000 0 ------------- ------------- LIABILITY FOR SHARE BASED COMPENSATION 0 67,000 ------------- ------------- LIABILITY FOR ASSET RETIREMENT OBLIGATION 1,144,857 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 1,137,010 1,071,610 Retained earnings 7,978,895 5,532,345 ------------- ------------- 9,115,905 6,603,955 ------------- ------------- $ 11,196,232 $ 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