PYRAMID OIL COMPANY STATEMENTS OF OPERATIONS (UNAUDITED) Three months ended Six months ended June 30, June 30, ------------------------ ------------------------ 2008 2007 2008 2007 ----------- ----------- ----------- ----------- REVENUES: $ 2,123,186 $ 1,110,413 $ 3,713,082 $ 1,936,593 ----------- ----------- ----------- ----------- COSTS AND EXPENSES: Operating expenses 461,477 408,650 884,283 771,313 Exploration Costs 0 816 -28,812 5,651 General and administrative 209,088 175,775 441,600 450,929 Taxes, other than income and payroll taxes 21,100 21,455 56,610 48,611 Provision for depletion, depreciation and amortization 191,239 120,907 354,059 218,577 Accretion expense 5,811 5,490 11,621 11,121 Other costs and expenses 56,020 15,360 75,572 24,052 ----------- ----------- ----------- ----------- 944,735 748,453 1,794,933 1,530,254 ----------- ----------- ----------- ----------- OPERATING INCOME 1,178,451 361,960 1,918,149 406,339 ----------- ----------- ----------- ----------- OTHER INCOME (EXPENSE): Interest income 19,934 18,391 42,011 42,180 Other income 9,152 8,381 18,814 11,981 Interest expense -593 -1,783 -1,234 -1,797 ----------- ----------- ----------- ----------- 28,493 24,989 59,591 52,364 ----------- ----------- ----------- ----------- INCOME BEFORE INCOME TAX PROVISION 1,206,944 386,949 1,977,740 458,703 Income tax provision Current 182,850 29,600 274,475 43,425 Deferred 116,100 0 -39,000 0 ----------- ----------- ----------- ----------- 298,950 29,600 235,475 43,425 ----------- ----------- ----------- ----------- NET INCOME $ 907,994 $ 357,349 $ 1,742,265 $ 415,278 =========== =========== =========== =========== EARNINGS PER SHARE - Post Split Basic and diluted income per common share $ 0.19 $ 0.08 $ 0.37 $ 0.09 =========== =========== =========== =========== Basic and diluted weighted average number of common shares outstanding 4,677,728 4,677,728 4,677,728 4,677,728 =========== =========== =========== =========== EARNINGS PER SHARE - Pre Split Basic and diluted income per common share $ 0.24 $ 0.10 $ 0.47 $ 0.11 =========== =========== =========== =========== Basic and diluted weighted average number of common shares outstanding 3,741,721 3,741,721 3,741,721 3,741,721 =========== =========== =========== =========== PYRAMID OIL COMPANY BALANCE SHEETS ASSETS June 30, December 31, 2008 2007 (Unaudited) (Audited) ------------ ------------ CURRENT ASSETS: Cash $ 1,381,425 $ 618,448 Short-term investments 1,505,325 1,478,979 Trade accounts receivable 1,059,244 643,340 Employee loan receivable 600 0 Interest receivable 2,225 2,251 Crude oil inventory 74,857 71,298 Deferred taxes 64,000 0 Prepaid expenses 84,393 170,913 ------------ ------------ TOTAL CURRENT ASSETS 4,172,069 2,985,229 ------------ ------------ PROPERTY AND EQUIPMENT, at cost Oil and gas properties and equipment (successful efforts method) 15,593,748 14,734,929 Capitalized asset retirement costs 310,579 310,579 Drilling and operating equipment 2,073,137 2,050,556 Land, buildings and improvements 1,045,649 1,010,847 Automotive, office and other property and equipment 1,162,324 1,141,451 ------------ ------------ 20,185,437 19,248,362 Less: accumulated depletion, depreciation, amortization and valuation allowance -14,394,669 -14,040,610 ------------ ------------ 5,790,768 5,207,752 ------------ ------------ OTHER ASSETS Deposits 250,000 250,000 Other Assets 7,380 7,380 Assets held for resale 9,633 9,633 ------------ ------------ $ 10,229,850 $ 8,459,994 ============ ============ PYRAMID OIL COMPANY BALANCE SHEETS LIABILITIES AND STOCKHOLDERS' EQUITY June, 30 December 31, 2008 2007 (Unaudited) (Audited) ------------ ------------ CURRENT LIABILITIES: Accounts payable $ 98,350 $ 108,500 Accrued professional fees 53,223 54,165 Accrued taxes, other than income taxes 0 61,684 Accrued payroll and related costs 64,444 57,647 Accrued royalties payable 280,643 212,916 Accrued insurance 26,399 65,999 Accrued income taxes 190,206 145,815 Current maturities of long-term debt 24,734 26,868 ------------ ------------ TOTAL CURRENT LIABILITIES 737,999 733,594 ------------ ------------ LONG-TERM DEBT, net of current maturities 32,707 44,542 ------------ ------------ DEFERRED TAXES 25,000 0 ------------ ------------ LIABILITY FOR SHARE BASED COMPENSATION 0 67,000 ------------ ------------ LIABILITY FOR ASSET RETIREMENT OBLIGATION 1,022,524 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 7,274,610 5,532,345 ------------ ------------ 8,411,620 6,603,955 ------------ ------------ $ 10,229,850 $ 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