Pyramid Petroleum Announces Resumes Operations at Gulf of Mexico Offshore Facilities and Operational Updates

CALGARY, ALBERTA, Sep 05 (MARKET WIRE) --
Pyramid Petroleum Inc. (TSX VENTURE: PYR) today announced that after
being shut down due to Hurricane Gustav, the Company has successfully
completed its safety survey and has found that no material damage has
been reported to its facilities in the Gulf of Mexico. Production has
resumed on the High Island platforms; however, the Green Canyon platforms
are waiting for third party transmission pipelines to come online before
production can be resumed.

Pyramid also provided an update on previously announced operational
activities:

- 4 well drilling program: The delay in commencement of drilling
operations has been primarily due to the unavailability of a suitable
rig. The operator has indicated that it has an opportunity to secure a
rig and if successful, the drilling operation will commence within 30
days.

- 8 well workover program: To date, Pyramid has completed 3 workovers in
the Green Canyon 184 field. The remaining 5 workovers will be spread
between Green Canyon 52 and 184 and scheduled for 4th Quarter 2008. A
brief summary on the 3 completed workovers:

1. A-10: Cleared debris and zone was re-perforated. Initial production
140 bopd with 10/64 choke. Well continues to produce at a rate of 140
bopd.

2. A-2: Cleared debris and oil flowed to the surface followed by
emulsions. Currently, the well is being analyzed to determine the
appropriate solution needed to liquefy the emulsions so that the well can
flow without interruption. Initial production rate has not been
determined as yet.

3. A-16: Cleared debris and re-perforated. Well did not produce from the
existing zone. Currently under analysis to determine if other zones can
be considered as candidates for perforation.

Pyramid has an ownership interest in some 16 platforms and 105 wells in
Gulf of Mexico located in Green Canyon 52, Green Canyon 184, High Island
160, Vermilion 331 and Mustang Island 804. Pyramid operates the Green
Canyon and High Island facilities with gross production exceeding 4,000
boepd at an average cost per BOE of $17. Pyramid's share of production
from Gulf of Mexico operations is approximately 1,200 boepd. Pyramid has
no debt and is deploying its cash flow for workover programs and drilling.

Disclaimers

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.

Contacts:
Pyramid Petroleum Inc.
Mansoor Anjum
CFO
(403) 617-3733
Email: manjum@pyramidgom.com
Website: www.pyramidpetroleum.com

CHF Investor Relations
Cathy Hume
CEO
(416) 868-1079 x231
Email: cathy@chfir.com

CHF Investor Relations
Michael Borovec
Account Manager
(416) 868-1079 x229
Email: Michael@chfir.com

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