Pyramid Oil Company Announces Fourth Quarter and Full-Year Financial Results

BAKERSFIELD, CA, Mar 31 (MARKET WIRE) --
Pyramid Oil Company (AMEX: PDO) today announced financial results for its
fourth quarter and full fiscal year ended December 31, 2007.

Fourth quarter revenue increased 61% to $1,399,276 versus $868,514 in the
fourth quarter of fiscal 2006. Operating income was $593,792 versus a
lossfrom operations of $240,154 in the same quarter a year ago. Net income
was$427,371, or $0.11 per diluted share, versus a net loss of $33,313, or $0.01
per diluted share, in the comparable year-ago quarter. The Company's improved
fourth quarter financial performance is primarily attributable to a sharp
increase in revenue from oil and gas sales.

John Alexander, president and CEO, said, "We are encouraged by the
improvedstrength of our financial performance, and by the steps we have taken to
position Pyramid for continued success during the coming year. We have been
very active in our Carneros Creek field, where we recently completed drilling
efforts on a new well and have been enhancing the performance of several
older wells. We recently completed work-over programs on four previously
drilled wells in the field, and have seen significant improvements in daily oil
production from each. We are now evaluating additional wells in the area on
which
we can perform similar fracing stimulation."

Alexander added, "During the coming year, we intend to drill additional
wells in our
California fields, as well as in Texas, where we are participating with a
joint venture group in a natural gas prospect. During recent testing of the
initial Texas well, excellent gas shows were encountered, and post-frac
testing indicated natural gas rates of more than 4 million cubic feet per day.
The well has been shut in while we await installation of a 3.8-mile gas sales
pipeline, and the JV group now expects to commence gas sales by mid-year."

Pyramid owns a gross 12.5% working interest (before payout) in the Texas
prospect. The JV also holds oil and gas leases on approximately 5,700
contiguous acres surrounding the initial well, and plans to commence additional
drilling operations on the acreage shortly after completion of the gas sales
pipeline.

For the full-fiscal year, Pyramid reported revenue of $4,944,782, an
increase of 25% versus revenue of $3,957,588 in fiscal 2006. Fiscal 2007
revenue included a gain of $441,927 on the sale of fixed assets.
Operatingincome advanced 92% to $1,767,090 from $922,695 in 2006, and net income
increased 58% to $1,495,061, or $0.40 per diluted share, from $948,872, or
$0.25 per diluted share, in the prior year.

Pyramid ended fiscal 2007 with cash and short-term investments of
$2,097,427, working capital of $2,251,635, long-term debt of $44,542 and
total stockholders' equity of $6,603,955.

About Pyramid Oil Company

Pyramid Oil Company has been in the oil and gas business continuously
sinceincorporating 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.

(Financial tables follow)

Pyramid Oil Company
Statements of Operations

Three months ended Twelve months ended
December 31, December 31,
----------------------- -----------------------
2007 2006 2007 2006
----------- ---------- ----------- -----------

REVENUES:
Oil and gas sales 1,397,822 868,514 $ 4,502,855 $ 3,957,588
Gain on sale of fixed
assets 1,454 0 441,927 0
----------- ---------- ----------- -----------

1,399,276 868,514 4,944,782 3,957,588
----------- ---------- ----------- -----------

COSTS AND EXPENSES:
Operating expenses 422,055 425,117 1,611,269 1,538,227
Exploration Costs 0 348,132 6,687 348,132
General and
administrative 208,132 165,357 924,746 637,120
Taxes, other than
income and payroll
taxes 32,997 21,457 111,909 81,712
Provision for
depletion, depreciation
and amortization 131,575 111,659 464,128 322,909
Accretion expense 5,548 5,004 22,135 20,343
Other costs and
expenses 5,177 31,942 36,818 86,450
----------- ---------- ----------- -----------

805,484 1,108,668 3,177,692 3,034,893
----------- ---------- ----------- -----------

OPERATING INCOME 593,792 -240,154 1,767,090 922,695
----------- ---------- ----------- -----------

OTHER INCOME (EXPENSE):
Interest income 21,950 18,475 85,003 67,988
Other income 3,600 28,600 19,886 41,219
Interest expense 104 -434 -1,768 -7,205
----------- ---------- ----------- -----------

25,654 46,641 103,121 102,002
----------- ---------- ----------- -----------
INCOME BEFORE INCOME
TAX PROVISION 619,446 -193,513 1,870,211 1,024,697
Income tax provision 192,075 -160,200 375,150 75,825
----------- ---------- ----------- -----------

NET INCOME $ 427,371 $ -33,313 $ 1,495,061 $ 948,872
=========== ========== =========== ===========

BASIC INCOME
PER COMMON SHARE $ 0.11 $ -0.01 $ 0.40 $ 0.25
=========== ========== =========== ===========

DILUTED INCOME
PER COMMON SHARE $ 0.11 $ -0.01 $ 0.40 $ 0.25
=========== ========== =========== ===========

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

December 31, December 31,
2007 2006
(Unaudited) (Unaudited)
------------- -------------
CURRENT ASSETS:
Cash $ 618,448 $ 619,001
Short-term investments 1,478,979 1,450,910
Trade accounts receivable 643,340 324,495
Interest receivable 2,251 0
Crude oil inventory 71,298 56,539
Prepaid expenses 170,914 152,899
Income taxes receivable 0 193,130
------------- -------------

TOTAL CURRENT ASSETS 2,985,229 2,796,974
------------- -------------

PROPERTY AND EQUIPMENT, at cost
Oil and gas properties and equipment
(successful efforts method) 14,734,929 12,891,756
Capitalized asset retirement costs 310,579 304,199
Drilling and operating equipment 2,050,556 2,008,397
Land, buildings and improvements 1,010,847 978,702
Automotive, office and other
property and equipment 1,141,451 1,068,670
------------- -------------

19,248,362 17,251,724
Less: accumulated depletion, depreciation,
amortization and valuation allowance -14,040,610 -13,620,171
------------- -------------

5,207,752 3,631,553
------------- -------------
OTHER ASSETS
Deposits 250,000 250,000
Other Assets 7,380 7,380
Assets held for resale 9,633 9,633

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

$ 8,459,994 $ 6,695,540
============= =============

PYRAMID OIL COMPANY
BALANCE SHEETS

LIABILITIES AND STOCKHOLDERS' EQUITY

December 31, December 31,
2007 2006
(Unaudited) (Unaudited)
------------- -------------

CURRENT LIABILITIES:
Accounts payable $ 108,500 $ 69,060
Accrued professional fees 54,165 50,114
Accrued taxes, other than income taxes 61,684 45,570
Accrued payroll and related costs 57,647 60,374
Accrued royalties payable 212,916 136,826
Accrued insurance 65,999 62,857
Accrued income taxes 145,815 0
Accrued termination costs 0 142,157
Current maturities of long-term debt 26,868 25,965
------------- -------------

TOTAL CURRENT LIABILITIES 733,594 592,923
------------- -------------

LONG-TERM DEBT, net of current maturities 44,542 11,334
------------- -------------

LIABILITY FOR SHARE BASED COMPENSATION 67,000 0
------------- -------------

LIABILITY FOR ASSET RETIREMENT OBLIGATION 1,010,903 982,389
------------- -------------

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; 3,741,721 shares
issued and outstanding 1,071,610 1,071,610
Retained earnings 5,532,345 4,037,284
------------- -------------

6,603,955 5,108,894
------------- -------------

$ 8,459,994 $ 6,695,540
============= =============

CONTACTS:
John H. Alexander
President and CEO
Pyramid Oil Company
661-325-1000

Geoff High
Principal
Pfeiffer High Investor Relations, Inc.
303-393-7044

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