SOURCE: Pyramid Oil Company

Pyramid Oil Company

April 01, 2010 08:00 ET

Pyramid Oil Company Reports Fourth Quarter and Full-year Financial Results

Strong Year-End Balance Sheet to Support Active 2010 Drilling Program; Horizontal Well Scheduled for April on Kern County, CA Property

BAKERSFIELD, CA--(Marketwire - April 1, 2010) - Pyramid Oil Company (NYSE Amex: PDO) today announced financial results for its fourth quarter and full year ended December 31, 2009.

Fourth quarter revenue increased to $971,000 from $898,000 in the fourth quarter of fiscal 2008. The increase was largely due to higher average crude oil prices, which rose $18.71 per barrel of oil equivalent (BOE) to $70.98 from $52.27 per BOE in last year's fourth quarter. The increase was partially offset by a 21% decline in production volumes.

Pyramid reported a fourth quarter net loss of $183,000, or $0.04 per diluted share, versus a net loss of $933,000, or $0.20 per share, in the prior year's fourth quarter. This year's fourth quarter was impacted by a non-cash reserve-impairment charge of $359,000, which was related primarily to the Company's Texas natural gas joint venture. The 2008 fourth quarter included a non-cash reserve-impairment charge of $1.2 million, due principally to the significant drop in oil prices during the second half of 2008.

Fourth quarter operating expenses declined to $388,000 from $509,000 in last year's fourth quarter, while total costs and expenses were reduced to $1.3 million from $2.6 million during the same respective periods. The Company reported a loss from operations of $302,000 versus an operating loss of $1.7 million in the comparable 2008 fourth quarter.

For the full fiscal year, revenue was $3.3 million versus $6.6 million in fiscal 2008. The decrease resulted from a decline of $36.40 per BOE received by the Company during 2009 compared with the prior year, as well as by a 12,600-barrel year-over-year decline in production volumes.

Full-year operating expenses declined by $530,000, or 27%, to $1.4 million compared with operating expenses of $1.9 million during fiscal 2008. Total 2009 costs and expenses declined to $3.8 million from $5.5 million in fiscal 2008. The Company reported a 2009 operating loss of $537,000 versus operating income of $1.1 million during 2008.

Pyramid generated $573,000 in 2009 operating cash flow, and closed the year with $4.8 million in cash and cash equivalents. The Company has $5.1 million in working capital and remains free of long-term debt.

"We closed fiscal 2009 with a strong balance sheet and a focused plan for capitalizing on our property portfolio and the improved pricing environment for crude oil," said John Alexander, president and CEO. "We have retained a talented independent geologist, who in recent months has led an extensive review of many of our California properties. This process has resulted in a short list of drilling prospects we intend to pursue during the coming year, provided the economics remain compelling. The first of these projects will be a horizontal well we intend to spud on one of our existing leases in Kern County during the coming month."

Mr. Alexander added, "We recently commenced production from a new well on our Carneros Creek property, and we are finally seeing encouraging signs of progress on our Texas natural gas joint venture, where Union Gas Company of Houston recently commenced field operations. We are optimistic that our efforts to increase production and enhance shareholder value will be successful during the coming year and beyond."

Mr. Alexander said management plans to fund the Company's near-term drilling program with cash on hand and future operating cash flow.

About Pyramid Oil Company

Pyramid Oil Company has been in the oil and gas business continuously since incorporating in 1909. Pyramid acquires interests in land and producing properties through acquisition and lease, and then drills and/or operates crude or natural gas wells in an effort to discover or produce oil and/or natural gas. More information about the Company can be found at: http://www.pyramidoil.com.

Safe Harbor Statement

Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995, including statements regarding the completion and testing of wells. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. Factors that could cause or contribute to such differences include, but are not limited to the value of crude oil or the performance of wells.

 
                            PYRAMID OIL COMPANY                            
                         STATEMENTS OF OPERATIONS                          
         
                              Three months ended      Twelve months ended
                                 December 31,            December 31,
                            ----------------------- ----------------------- 
                               2009        2008        2009        2008
                            ----------- ----------- ----------- -----------

REVENUES:
  Oil and gas sales         $   970,536 $   898,427 $ 3,311,895 $ 6,610,628
  Gain on sale of fixed
   assets                             0           0           0         500
                            ----------- ----------- ----------- -----------

                                970,536     898,427   3,311,895   6,611,128
                            ----------- ----------- ----------- -----------

COSTS AND EXPENSES:
  Operating expenses            388,382     508,614   1,411,721   1,941,888
  Exploration costs                   0           0           0     -28,812
  General and administrative    270,871     259,832     924,676   1,001,791
  Stock based compensation            0     169,000     209,935     167,400
  Taxes, other than income
   and payroll taxes             33,131      32,124     147,724     131,215
  Provision for depletion,
   depreciation and
   amortization                 171,073     420,924     639,738     944,168
  Valuation allowances          358,757   1,162,379     358,757   1,162,379
  Accretion expense              23,922       2,364      41,618      68,832
  Other costs and expenses       26,391      26,875     115,164     128,090
                            ----------- ----------- ----------- -----------

                              1,272,527   2,582,112   3,849,333   5,516,951
                            ----------- ----------- ----------- -----------

OPERATING INCOME (LOSS)        -301,991  -1,683,685    -537,438   1,094,177
                            ----------- ----------- ----------- -----------


OTHER INCOME (EXPENSE):
  Interest income                 7,049      24,120      75,427      88,792
  Other income                    3,600       4,400      14,400      28,431
  Interest expense                 -241        -472      -1,313      -2,235
                            ----------- ----------- ----------- -----------

                                 10,408      28,048      88,514     114,988
                            ----------- ----------- ----------- -----------
INCOME (LOSS) BEFORE
 INCOME TAX PROVISION
 (BENEFIT)                     -291,583  -1,655,637    -448,924   1,209,165
  Income tax provision 
   (benefit)
    Current                     -14,200      73,458    -195,282     312,710
    Deferred                    -94,855    -796,245     -64,355    -617,245
                            ----------- ----------- ----------- -----------
                               -109,055    -722,787    -259,637    -304,535
                            ----------- ----------- ----------- -----------

NET INCOME (LOSS)           $  -182,528 $  -932,850 $  -189,287 $ 1,513,700
                            =========== =========== =========== ===========

Basic Income Per Common
 Share                      $     -0.04 $     -0.20 $     -0.04 $      0.32
                            =========== =========== =========== ===========

Diluted Income Per Common
 Share                      $     -0.04 $     -0.20 $     -0.04 $      0.32
                            =========== =========== =========== ===========

Basic weighted average
 number of common shares
 outstanding                  4,677,728   4,677,728   4,677,728   4,677,728
                            =========== =========== =========== ===========

Diluted weighted average
 number of common shares
 outstanding                  4,686,249   4,713,055   4,686,249   4,713,055
                            =========== =========== =========== ===========




                             PYRAMID OIL COMPANY
                               BALANCE SHEETS

                                   ASSETS
              
                                                December 31,   December 31,
                                                   2009           2008
                                                (Unaudited)     (Audited)
                                                ------------   ------------

CURRENT ASSETS:
  Cash and cash equivalents                     $  1,438,825   $  1,793,563
  Short-term investments                           3,344,061      2,789,099
  Trade accounts receivable                          375,954        213,588
  Income taxes receivable                            124,281              0
  Crude oil inventory                                 62,760         82,025
  Deferred income taxes                              196,200        108,000
  Prepaid expenses and other assets                  169,595        186,353
                                                ------------   ------------

    TOTAL CURRENT ASSETS                           5,711,676      5,172,628
                                                ------------   ------------

PROPERTY AND EQUIPMENT, at cost
  Oil and gas properties and equipment
   (successful efforts method)                    16,085,228     15,755,472
  Capitalized asset retirement costs                 382,550        382,550
  Drilling and operating equipment                 2,109,993      2,109,993
  Land, buildings and improvements                 1,065,371      1,065,371
  Automotive, office and other
   property and equipment                          1,160,617      1,162,324
                                                ------------   ------------

                                                  20,803,759     20,475,710
  Less: accumulated depletion, depreciation,
   amortization and valuation allowance          -17,125,834    -16,147,157
                                                ------------   ------------

                                                   3,677,925      4,328,553
                                                ------------   ------------
OTHER ASSETS
  Deposits                                           250,000        250,000
  Deferred income taxes                              485,400        509,245
  Other Assets                                        17,013         17,013

                                                ------------   ------------

                                                $ 10,142,014   $ 10,277,439
                                                ============   ============



                             PYRAMID OIL COMPANY
                               BALANCE SHEETS

                     LIABILITIES AND STOCKHOLDERS' EQUITY

                                                December 31,   December 31,
                                                   2009           2008
                                                (Unaudited)     (Audited)
                                                ------------   ------------

CURRENT LIABILITIES:
  Accounts payable                              $     88,170   $     40,820
  Accrued professional fees                          138,381        130,261
  Accrued taxes, other than income taxes              62,310         76,222
  Accrued payroll and related costs                   51,606         50,451
  Accrued royalties payable                          159,933        132,472
  Accrued insurance                                   54,947         59,096
  Accrued income taxes                                     0        239,815
  Current maturities of long-term debt                20,640         23,901
                                                ------------   ------------

    TOTAL CURRENT LIABILITIES                        575,987        753,038
                                                ------------   ------------

LONG-TERM DEBT, net of current maturities                  0         20,640
                                                ------------   ------------

LIABILITY FOR ASSET RETIREMENT OBLIGATION          1,193,324      1,151,706
                                                ------------   ------------

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                          1,515,945      1,306,010
  Retained earnings                                6,856,758      7,046,045
                                                ------------   ------------

                                                   8,372,703      8,352,055
                                                ------------   ------------


                                                $ 10,142,014   $ 10,277,439
                                                ------------   ------------

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