Pyramid Petroleum Announces Q2 Drilling Success

Pyramid Petroleum released encouraging results from the three wells drilled in the second quarter of 2007.

At Hays, Alberta, Pyramid has a 90 percent interest and is the operator for one well drilled to a depth of 970 meters as part of a farm-in commitment. The well is being tested, with Pyramid hopeful that it results in oil production. With the drilling of this well, Pyramid has earned a 90 percent interest in a 480-acre parcel of land.

Pyramid also participated with a 12.5 percent, non-operated interest in the drilling of two wells in the Gulf of Mexico, offshore U.S.A. The A25 well is currently producing 10.87 million cubic feet per day (mmcf/d) of natural gas, equivalent to 1,812 barrels of oil equivalent per day (boe/d). Meanwhile, the A29 well is currently producing 239 barrels of oil per day plus 0.17 mmcf/d, for a total of 268 boe/d. The combined net increase in production to Pyramid's interest from the two Gulf of Mexico wells is 260 barrels of oil equivalent per day (boe/d), bringing total company working interest production to 1,595 boe/d as of early July 2007. Decline rates are undetermined at this time for the two new Gulf of Mexico wells.

The Gulf of Mexico properties are part of the acquisition announced on May 18, 2007. Pyramid is awaiting stock exchange approval for this acquisition.