Pyramid Sustains No Damage Due to Gustav, Resumes Production

Pyramid Petroleum Inc. announced that after being shut down due to Hurricane Gustav, the Company has successfully completed its safety survey and has found that no material damage has been reported to its facilities in the Gulf of Mexico. Production has resumed on the High Island platforms; however, the Green Canyon platforms are waiting for third party transmission pipelines to come online before production can be resumed.

Pyramid has an ownership interest in some 16 platforms and 105 wells in Gulf of Mexico located in Green Canyon 52, Green Canyon 184, High Island 160, Vermilion 331 and Mustang Island 804. Pyramid operates the Green Canyon and High Island facilities with gross production exceeding 4,000 boepd at an average cost per BOE of $17. Pyramid's share of production from Gulf of Mexico operations is approximately 1,200 boepd. Pyramid has no debt and is deploying its cash flow for workover programs and drilling.