Pyramid Petroleum Announces Record Revenues and Cash Flow Increases and Other 2007 Financial Results

CALGARY, Alberta, May 1 /PRNewswire-FirstCall/ -- Pyramid Petroleum, Inc. (TSX: PYR) announced today the results of operations for the year ended December 31, 2007. The Company's audited financial statements and associated management's discussion and analysis can be found online at http://www.sedar.com/. The Company's reporting currency and all the amounts provided herein are United States dollars.

CEO Ilyas Chaudhary stated, "On behalf of Pyramid, I am pleased to announce the record financial results for the year 2007 and believe that increase in production volumes and revenue will continue by contribution from developmental well work over and drilling of exploratory wells in 2008. It was a great 2007 and we expect the same for 2008."

HIGHLIGHTS
-- Revenues, net of royalties, for the year ended December 31, 2007 were
$16,542,307 compared to $1,666,396 for the year ended December 31,
2006. The increase is due to additional assets acquired in the Gulf of
Mexico in the 2nd quarter of 2007 and a subsequent development program
on those assets.

-- Cash flow from operations for the year 2007 was $8,149,516 (22 cents
per share) compared to $521,069 (2 cents per share) for the year 2006.

-- Net income for the year 2007 was $2,684,333 (7 cents per share)
compared to loss of $2,031,683 (loss of 7 cents per share) for the year
2006. The loss in 2006 included a write down of assets.

The following is the summary of financial results for the Company for the three month periods ended December 31, 2007 and 2006, and for the years ended December 31, 2007 and 2006.

Three months ended Year ended
December 31 December 31
2007 2006 2007 2006
Oil and gas revenue ($),
net of royalties 6,348,558 863,224 16,542,307 1,666,093

Income (loss) for the
period ($) (1) 1,727,978 (1,956,577) 2,684,333 (2,031,683)

Income (loss) per share - basic and diluted ($) 0.05 (0.05) 0.07 (0.07)

Cash flow from
operations ($) 4,571,623 85,436 8,149,516 521,069

Cash flow per share - basic
and diluted ($) 0.12 0.00 0.22 0.02

Total sales volumes
(boe 6:1), net of royalties 138,304 21,712 350,642 42,699

Weighted average number
of shares - basic 37,297,758 36,595,720 36,913,520 28,409,777

(1): Loss in 2006 included a write down of assets in the amount of
$1,862,790

Disclaimers

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

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.

First Call Analyst:
FCMN Contact:

Source: Pyramid Petroleum, Inc.

CONTACT: Faisal Chaudhary, V.P. Marketing of Pyramid Petroleum Inc.,
+1-281-822-0801, ext. 110, faisal@pyramidgom.com; or Cathy Hume, CEO,
ext. 231, cathy@chfir.com, or Michael Borovec, Account Manager, ext. 229,
michael@chfir.com, both of CHF Investor Relations, +1-416-868-1079, for
Pyramid Petroleum, Inc.

Web site: http://www.pyramidpetroleum.com/

2008-05-01 18:47:36 0351106 PRNEWSWIRE