Pyramid Petroleum Inc.

Pyramid Petroleum Inc.

June 19, 2008 09:39 ET

Pyramid Petroleum Pays Off Entire Revolving Demand Loan

CALGARY, ALBERTA--(Marketwire - June 19, 2008) - Pyramid Petroleum Inc. (TSX VENTURE:PYR) today announced that it has closed the sale of its 5.84% interest in its Montana and Alberta properties in addition to the purchase of 25% interest in the offshore properties within Brazos 440 block in the Gulf of Mexico, as announced on April 26, 2008. From the sale proceeds of $6.3 million, $4 million was used to repay the revolving demand loan with the balance being used for working capital and the initial payment for the Brazos 440 purchase. With this payoff, Pyramid's remaining debt is approximately $3 million.

Pyramid Petroleum CEO Ilyas Chaudhary stated, "With the complete payoff of the revolving loan, Pyramid is following through with its initiative to positively position the Company for its future growth strategy in addition to adding shareholder value."

About Pyramid Petroleum

Pyramid Petroleum Inc. is an oil and gas exploration and production company with substantial upside through its strategically located operations in the Gulf of Mexico. Shares of the Company are listed for trading on the TSX Venture Exchange under the symbol "PYR."


BOEs derived by converting gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil (6 Mcf: 1 bbl). BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Except for statements of historical fact, all statements in this press release, without limitation, regarding new projects and future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.

The TSX Venture Exchange has neither approved nor disapproved of the contents hereof.

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