Pyramid Petroleum Inc.

Pyramid Petroleum Inc.

June 26, 2008 09:01 ET

Pyramid Petroleum to Raise Up to $15.0 Million by Way of Convertible Debenture Offering

CALGARY, ALBERTA--(Marketwire - June 26, 2008) - Pyramid Petroleum, Inc. (TSX VENTURE:PYR) ("Pyramid" or the "Company") is pleased to announce that it has engaged Research Capital Corporation to act as lead agent (the "Agent"), on a best-efforts basis, for an offering (the "Offering") of up to $15.0 million in convertible debentures of Pyramid. The indicative terms of the Offering include, among others, that the convertible debentures shall have a term of 5 years, shall bear an interest rate of 8.5% per year, with interest payments to be made semi-annually, and shall be convertible into common shares of the Company at any time following the closing of the Offering at a price that represents a premium of 25% to the 30-day volume-weighted average share price of Pyramid prior to the closing of the Offering.

Proceeds from the Offering shall be used to fund development drilling, work-overs and exploration on the Company's oil and gas properties, as well as for working capital and to take advantage of select acquisition opportunities in the Gulf of Mexico, the Company's core area of operations.

Pyramid currently anticipates the closing of the Offering will occur in August 2008 but closing may occur earlier or later, as the Company and the Agent may determine and is subject to regulatory approval.

About Pyramid Petroleum

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


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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