Pyramid Oil's JV Awaiting Pipeline Installation

Pyramid Oil Company announces results from its joint venture operations in Texas. In December 2007, the company participated with a joint venture group in the drilling of a directional 1,100 foot lateral hole that encountered excellent gas shows in sections of a fractured carbonate zone, at a depth below 12,000 feet. In mid-January, the well was hydraulically fractured with the injection of 9,700 barrels of gelled fluid carrying 500,000 pounds of proppant. Post frac testing indicated natural gas rates of over 4,000,000 cubic feet a day and approximately 40 barrels a day of condensate. The gas tested at over 1,200 Btu per cubic foot and the bottom hole pressures observed were in excess of 8,000 psi during testing. Currently the well is shut in waiting for the installation of a 3.8 mile gas sales pipeline. Participants in the joint venture expect gas sales to begin sometime in mid-2008. The joint venture group currently holds oil and gas leases on approximately 5,700 contiguous acres surrounding this well. The company expects additional joint venture drilling operations on this acreage to begin shortly after completion of the gas sales pipeline. Pyramid owns a gross 12.5% working interest (before payout) in this joint venture prospect.