Pyramid Oil Company Reports Second Quarter Financial Results

BAKERSFIELD, CA--(Marketwired - Aug 14, 2013) - Pyramid Oil Company (NYSE MKT: PDO) today announced financial results for its second quarter ended June 30, 2013.

Second quarter revenue was $1.2 million versus $1.3 million in the same quarter last year. The decrease was attributable to lower crude sales volumes versus the year-ago second quarter, and lower crude oil prices. Crude prices declined by $9.27 per average barrel of oil equivalent (BOE) to $98.79 from $108.06 per average BOE in the 2012 second quarter.

Operating income was $173,000 versus $368,000 in the second quarter last year. Net income was $130,000, or $0.03 per share, versus $289,000, or $0.06 per share, during the same quarter in 2012.

For the six-month period, revenue was $2.2 million versus $2.7 million during the same period of 2012. Operating income was $337,000 versus $824,000 in the comparable prior-year period, while net income was $243,000, or $0.05 per share, versus $661,000, or $0.14 per share, in the same period a year ago. Operating cash flow at the mid-year mark was $485,000 compared with $1.3 million during the first six months of last year.

At June 30, Pyramid had cash, cash equivalents and short-term investments of $6.3 million, total current assets of $7.3 million, and working capital of $6.7 million. The Company also reported long-term assets in the form of certificates of deposit of $1.1 million. Current liabilities at June 30 were $559,000 and total liabilities were $1.9 million. Stockholders' equity at the end of the quarter was $10.9 million.

John Alexander, president and CEO, said increasing Pyramid's crude production volumes remains a high priority. "We are focused on advancing our well re-entry program in Santa Maria, California. We are still awaiting associated permits from the State of California, and then will secure a contract drilling rig. We remain optimistic we can commence drilling operations later this year."

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
BALANCE SHEETS
ASSETS
				June 30,			December 31,
				2013			2012
				(Unaudited)			(Audited)
CURRENT ASSETS:
	Cash and cash equivalents			$	4,152,665		$	3,834,097
	Short-term investments				2,138,406			2,135,709
	Trade accounts receivable				467,160			375,090
	Income taxes receivable				41,400			73,069
	Crude oil inventory				83,582			82,180
	Prepaid expenses and other assets				117,566			257,370
	Deferred income taxes				264,400			264,400
		TOTAL CURRENT ASSETS			7,265,179			7,021,915
PROPERTY AND EQUIPMENT, at cost
	Oil and gas properties and equipment (successful efforts method)				20,063,740			20,007,453
	Capitalized asset retirement costs				425,978			425,978
	Drilling and operating equipment				2,058,744			1,966,750
	Land, buildings and improvements				1,098,918			1,098,918
	Automotive, office and other property and equipment				1,202,544			1,202,544
					24,849,924			24,701,643
	Less: accumulated depletion, depreciation, amortization and valuation allowances				-21,215,120			-20,953,324
	TOTAL PROPERTY AND EQUIPMENT				3,634,804			3,748,319
INVESTMENTS AND OTHER ASSETS
	Long-term investments				1,116,493			1,101,526
	Deferred income taxes				522,500			621,800
	Deposits				250,000			250,000
	Other Assets				17,380			17,380
	TOTAL INVESTMENTS OTHER ASSETS				1,906,373			1,990,706
		TOTAL ASSETS		$	12,806,356		$	12,760,940

PYRAMID OIL COMPANY
BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
				June 30,			December 31,
				2013			2012
				(Unaudited)			(Audited)
CURRENT LIABILITIES:
	Accounts payable			$	177,346		$	226,759
	Accrued professional fees				84,604			120,000
	Accrued taxes, other than income taxes				0			70,407
	Accrued payroll and related costs				57,446			58,954
	Accrued royalties payable				226,500			204,509
	Accrued insurance				13,197			94,116
		TOTAL CURRENT LIABILITIES			559,093			774,745
LONG TERM DEBT, net of current maturites					0			0
LIABILITY FOR ASSET RETIREMENT OBLIGATIONS					1,346,172			1,327,861
		TOTAL LIABILITIES			1,905,265			2,102,606
COMMITMENTS AND CONTINGENCIES
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; 4,688,085 shares issued and outstanding				1,682,971			1,682,971
	Retained earnings				9,218,120			8,975,363
		TOTAL STOCKHOLDERS' EQUITY			10,901,091			10,658,334
	TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$	12,806,356		$	12,760,940

PYRAMID OIL COMPANY
STATEMENTS OF OPERATIONS
(UNAUDITED)
			Three months ended June 30,						Six months ended June 30,
			2013			2012			2013			2012
REVENUES:
	Oil and gas sales		$	1,154,409		$	1,340,314		$	2,162,212		$	2,709,372
COSTS AND EXPENSES:
	Operating expenses			500,043			459,798			934,481			889,739
	General and administrative			234,862			228,878			457,003			439,894
	Taxes, other than income and payroll taxes			37,158			36,960			67,555			84,381
	Provision for depletion, depreciation and amortization			148,817			186,738			261,796			367,894
	Accretion expense			7,932			5,730			18,311			18,817
	Other costs and expenses			52,973			54,669			86,198			84,474
				981,785			972,773			1,825,344			1,885,199
OPERATING INCOME				172,624			367,541			336,868			824,173
OTHER INCOME (EXPENSE):
	Interest income			10,004			10,170			20,315			20,860
	Other income			0			250			0			250
	Interest expense			0			-290			0			-716
				10,004			10,130			20,315			20,394
INCOME BEFORE INCOME TAX PROVISION				182,628			377,671			357,183			844,567
	Income tax provision
	Current			9,357			34,600			15,126			83,000
	Deferred			43,200			54,500			99,300			100,900
				52,557			89,100			114,426			183,900
NET INCOME			$	130,071		$	288,571		$	242,757		$	660,667
BASIC INCOME PER COMMON SHARE			$	0.03		$	0.06		$	0.05		$	0.14
DILUTED INCOME PER COMMON SHARE			$	0.03		$	0.06		$	0.05		$	0.14
Weighted average number of common shares outstanding				4,688,085			4,683,853			4,688,085			4,683,853
Diluted average number of common shares outstanding				4,688,085			4,686,827			4,688,085			4,686,929