Pyramid Petroleum Inc (CE) (PYDPF) News

PYDPF: inactive security. FINRA deleted symbol:

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Pyramid Petroleum Embarks on Six well Drilling Program in Gulf of Mexico And Announces US $10m Financing



Houston , TX - Pyramid Petroleum Inc. (“Pyramid” or “the Company”) (TSXV: PYR) announced today that it has embarked on a six well drilling program in the Gulf of Mexico. Pyramid has a 50% interest in three of these wells, which it will be drilling from its own proven-undeveloped reserves in High Island block 160, and a 10% interest in an additional three wells with its partner Black Pool Energy. This initial six well drilling and development program will target a gross 36 BCF of natural gas reserves, and potential production of roughly 8.8mmcf/day net to Pyramid’s production interest.



Pyramid has engaged Toronto, Canada based Becher McMahon Capital Markets to assist the company with raising up to USD $10m in senior debt to drill and complete these wells. Becher McMahon has considerable debt and equity capital markets experience in funding the capital requirements of growing oil and gas producers, and recently completed the funding of a similar Gulf of Mexico operator.





Pyramid CEO Ilyas Chaudhary stated, “We are pleased to announce the engagement of Becher McMahon Capital Markets for the purposes of this capital raise. With a high quality exploration and facilities staff in place, Pyramid is confident that this first phase of our 2009 growth strategy will be a success and prove to increase shareholder value. We look forward to working with Becher McMahon and expect to complete the funding of the drilling program by the end of February. ”



A detailed description of Pyramid’s 2009 growth strategy can be found at www.pyramidpetroleum.com/summary.html





About Pyramid Petroleum Inc.

Pyramid Petroleum Inc., with its headquarters located in Houston , Texas , is an oil and gas

exploration and production company having substantial upside through its strategically located

operations in the Gulf of Mexico . Shares of the Company are traded on the TSX Venture

Exchange under the symbol “PYR”.

Pyramid Provides Operational Updates
Tuesday November 18, 9:28 am ET


HOUSTON, TX--(MARKET WIRE)--Nov 18, 2008 -- Pyramid Petroleum Inc. ("Pyramid" or "the Company") (CDNX:PYR.V - News) today announced that 40% of its production in the Gulf of Mexico is back on line following the damage caused by Hurricane Ike as previously announced on September 24th, 2008. The remaining 60% is expected to be on line by late December 2008. Specific operational updates are as follows:

1. Green Canyon 53/52/184

These platforms sustained damage due to Hurricane Ike. Pyramid immediately undertook efforts to secure and repair the platforms and return the wells to production. Pyramid's share of estimated costs for repairs was approximately $2.1 million. The company is to pay roughly half of this with the balance to be paid by insurance. Production is anticipated to be on line in late December. The Green Canyon Blocks are located in 570 to 1,760 feet of water in the Gulf of Mexico and produce approximately 2,200 bopd and 4,000 mcfd gross. Pyramid's working interest share is roughly 550 boepd. The design capacity of the platform facilities located in Block 52 is approximately 55,000 bopd and 125,000 mcfd. Produced oil is shipped through a 30 mile 12" line in which Pyramid owns a 19% interest. The gas is marketed through a third party gas line. Pyramid has working interests ranging from 16.5% to 25% in the Green Canyon wells, the platform facilities, and the roughly 15,000 acre leasehold.

2. Green Canyon 184 well work over program

Pyramid will resume its work over program once production is restored. The program at Green Canyon 184 consists of 8 wells 2 of which were completed prior to the interruptions by Hurricane Ike.

3. High Island 160

The platform sustained damage due to Ike. Production has now been restored and the Block is producing about 1,500 mcfd. Pyramid's estimated share of repair costs was approximately $800,000 all of which has been paid to date. High Island 160 is located in 55 feet of water with Pyramid holding a 50% or roughly 125 boepd working interest in the Block.

4. Vermillion 331/MU804

The platform and pipeline sustained damages due to Ike. The cost to Pyramid was 200,000. Both the Blocks are now producing with Pyramid's working interest share being 12.5% or approximately 275 boepd.

5. Three Well Exploratory Drilling Program

The three well exploratory drilling program, announced earlier this year, was postponed due to Hurricane Ike. The program will commence in mid December. Pyramid has a 10% interest in the program.

Pyramid Petroleum CEO Ilyas Chaudhary stated, "After sustaining damages due to Ike, I am pleased to see the success our operations team accomplished thus far in bringing production back on line in such an efficient manner. I feel confident we will continue to see Pyramid moving forward with additional production coming back on line at Green Canyon as well as the drilling and work over programs."

Pyramid Petroleum Announces Appointment of New Chief Financial Officer
Monday November 3, 12:51 pm ET


HOUSTON, TX--(MARKET WIRE)--Nov 3, 2008 -- Pyramid Petroleum Inc. ("Pyramid") (CDNX:PYR.V - News) today announced that it has appointed Jim Frazier as its new Chief Financial Officer. Mr. Frazier replaces Mansoor Anjum, who has resigned as Chief Financial Officer, leaving the Company to pursue other opportunities.

Mr. Frazier is a financial executive with over 20 years experience within the commercial and public sectors. Formerly, Mr. Frazier was Executive Director and Manager for Red Rock Capital, an Oklahoma based commercial lending and leasing correspondent. Mr. Frazier also served as Chief Financial Officer for a Bulletin Board NASDAQ listed international oil and gas company, from 1997 to 2002. Mr. Frazier was also a Vice President with Chase Manhattan Bank from the early 1980s to early 1990s, working primarily in securities and later commercial lending and credit services. Additionally, Mr. Frazier served on the Board of America's Challenge, a non-profit charitable organization. Mr. Frazier earned his B.A. degree in Economics and English from Fordham University in NYC.

Pyramid Petroleum CEO Ilyas Chaudhary stated, "The appointment of Mr. Jim Frazier as CFO will provide both continuity and excellent financial management experience to Pyramid's management team as we pursue our corporate objectives."

About Pyramid Petroleum

Pyramid Petroleum Inc., with its headquarters located in Houston, Texas, 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 traded on the TSX Venture Exchange under the symbol "PYR."

Seems as though this is holding up very well considering the large drop in oil prices.

Pyramid Petroleum, Inc. Undertakes Normal Course Issue Bid to Buy Back Shares
CALGARY, ALBERTA--(Marketwire - Oct. 7, 2008) - Pyramid Petroleum Inc. ("Pyramid") (TSX VENTURE:PYR) today announced that it has filed with the TSX Venture Exchange a Notice of Intention to purchase its common shares from time to time in accordance with the normal course issuer bid procedures under Canadian securities laws.

Pursuant to the issuer bid, Pyramid may purchase for cancellation up to 1,884,602 of its common shares, representing 5% of the issued and outstanding common shares of the Corporation, for a 12-month period. The price which Pyramid will pay for any shares under the normal course issuer bid will be the market price at the time of purchase as traded on the TSX Venture Exchange. The brokerage firm conducting the normal course issuer bid on behalf of Pyramid is Research Capital Corporation. The normal course issuer bid will commence on October 10, 2008, and terminate on October 10, 2009.

The Corporation believes that the purchase of its shares at recent market prices is a worthwhile investment since recent market prices do not properly reflect the underlying value of its assets and business. To the extent that the Corporation purchases for cancellation such shares in accordance with the Normal Course Issuer Bid, the holdings of remaining shareholders would represent an increased proportion of the shares outstanding and, all other things remaining equal, are expected to result in an increased net asset value per share.

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."

September 30, 2008
Pyramid Consolidates Operations in Houston, Texas
HOUSTON, TEXAS--(Marketwire - Sept. 30, 2008) - Pyramid Petroleum Inc. ("Pyramid" or "the Company") (TSX VENTURE:PYR) today announced that it has completed the consolidation of its corporate, operations, accounting and administrative functions in Houston, Texas. Consequently, Pyramid's CFO, Mr. Mansoor Anjum, has resigned from all officer positions with the Company and its subsidiaries. Mr. Anjum will continue to sit as a Director on the Board. The Company intends to hire a new CFO within the next 60 to 90 days and has started interviewing suitable candidates. In the interim, Pyramid's CEO is appointed Acting-CFO.

CEO, Acting-CFO Ilyas Chaudhary explained, "Unifying Pyramid's entire operations staff, including corporate accounting, in Houston serves our mission to optimize the Gulf of Mexico assets."

The biggest damage is to cashflow. 80% of production and revenues will stop for at least two months. That means Q3 will lose revenues from 9/1/08. PR said it will take two months from the end of September to fix things. That means October and November will be impacted. So Q4 could be worse than Q3 in reduced revenues.

So that means the annual report, which typically takes until April to report, will be negatively impacted and the first full qtr will be Q1 2009. That won't be reported until May 2009. That is a long time from now.

On the positive side, Pyramid will be resuming the workover program after the repairs and the first exploration well will be spudding in the next month. So there could be good news between now and May 2009. BUT the financials are not going to be pretty. There could be losses in Q3 and certainly in Q4. Insurance reimbursement of the $3million repair costs are great but likely won't replace the lost revs.

Bobwins

Bobwins

Considering that Pyramid expects to be reimbursed for these hurricane related damages by their insurance carrier,I believe the current SP to be an over reaction,and an opportunity to dollar cost average.

But most have taken a serious haircut in the recent market turmoil,and have limited funds to take advantage.

futrcash

agreed. however i think this bad news doesn't necessarily mean this stock has gone bad. however, i think any growth from this company will now be a quarter or more away. Those of us that hold on may be rewarded a year from now.

yep definately something leaked there for sure....

Clearly somebody got the headsup...

hmmm makes me wonder about the big drop to .305 Monday. Maybe there was a leak and someone decided any price was good enough. Bobwins

Definitely, keeping her on watch for now...

That loss in production will now hurt earnings. I am out of this for now as it seems it may take some time to play out.

September 25, 2008
Pyramid Begins Repair Operations Resulting From Hurricane Ike and Provides Operational Updates
HOUSTON, TEXAS--(Marketwire - Sept. 25, 2008) - Pyramid Petroleum Inc. ("Pyramid" or "the Company") (TSX VENTURE:PYR) today announced that Hurricane Ike had caused damages to several offshore platforms with the result of approximately 80% of its production will be curtailed for the next two months. The estimated cost for repairs net to Pyramid, before insurance reimbursement, is $3.0 million. Pyramid has filed a claim with its insurance company and expects recovery of a majority of the repair costs.

Further details on Ike and other operational updates are as follows:

1. Green Canyon 53/52/184: Sustained damages due to Ike. Pyramid's share of estimated costs for repairs: $2.2 million. Production will be curtailed for approximately two months. The Green Canyon Blocks are located in 570 to 1,760 feet of water in the Gulf of Mexico and produce a gross of 2,300 bopd and 4,000 mcfd. The design capacity of the platform facilities located at Block 52 is 55,000 bopd and 125,000 mcfd. Produced oil is shipped through a 32-mile pipeline line in which Pyramid has an ownership interest of 19%. The gas is marketed through a third party gas pipeline. Pyramid has working interests ranging from 16.5% to 25% in the Green Canyon wells, the platform facilities, and the 15,000 acre leasehold.

2. Green Canyon 184 well workover program: Before suffering the effects of Ike, Pyramid had completed three of eight planned workovers. The results of the three well workover program were announced earlier. The remaining well workovers will commence after production has been restored.

3. High Island 160: Sustained damages due to Ike. Pyramid's share of the repair cost is estimated to be $0.8 million. It is anticipated that production will be curtailed for the next 30 days. High Island 160 Block is located in 50 feet of water and produces a gross of 1.7 mmcfd. The gas is marketed through the Black Marlin 16" pipeline. Pyramid has a 50% working interest in the Field.

4. VR 331/MU804: MU 804 has returned to production but the timing of the return to production of VR 331 is undetermined at present. Approximately one-third of Pyramid's cash flow is from these leases in which Pyramid has a 12.5% working interest.

5. Drilling Program: Pyramid has reduced its interest in the three new wells from 20% to 10% and has funded its share of the land and drilling costs of the first well. Pyramid has been informed by the operator that it expects drilling of the first well to commence within 30 days.

CEO Ilyas Chaudhary added, "As has been the case with past hurricanes, Pyramid will recover efficiently from the effects of Hurricane Ike and will continue to build its asset base in the Gulf of Mexico. We have a firm belief the Gulf of Mexico is a vast frontier where substantial hydrocarbons still remain untapped."

agreed. this could be the start of something good.

Nice volume today on this one!!!

Oil with record jump today. Let’s hope it stays/keeps going up although oil even at $80 is still great for Pyramid. The company has done an incredible job having the cost per BOE at $15. That means even $30 oil makes the company money which many, many companies out there cannot say the same.

I continue to still look for shares to trade around $2 shortly.

does anyone think we are going to find support at .65?

Don't forget the TSX listing should be happenning soon as well.

I would agree. Pyramid has done a great job of assemblying a nice package of production and platforms. I think they need to demonstrate that they can hit some new wells and grow thru the drillbit. The market is not good right now for speculative debt. They can always go back to the market after they show some growth and especially if they sign up some of their neighbors to use their empty pipeline. Bobwins

I don't really look at that as good news unfortunately... Sounds like they couldn't get any buyers for the debt.

I think this is a good idea as now oil is weak and PYR makes enough profit to fund expansion.

There may have been some interested in buying some of those Convertible Debentures and thought if they could make the stock price lower they could get a better deal but Pyramid would not play that game.

Cash flow must be very good then. This comapny is so undervalued especially seeing that its trading at only 2x's forward annualized cash flow.

September 10, 2008
Pyramid Withdraws Previously Announced Convertible Debenture Offering
CALGARY, ALBERTA--(Marketwire - Sept. 10, 2008) - Pyramid Petroleum, Inc. (TSX VENTURE:PYR) ("Pyramid" or the "Company") today announced that it has elected to withdraw its previously announced convertible debenture offering. The offering was first announced on June 26th, 2008.

Pyramid's decision to withdraw the offering at this time is primarily attributable to adverse financial market conditions. The Company determined that it has the ability to continue to fund its current capital program through internally generated cash flow.

About Pyramid Petroleum, Inc.:

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".

Pyramid Petroleum Announces Resumes Operations at Gulf of Mexico Offshore Facilities and Operational Updates
Friday September 5, 1:26 pm ET

CALGARY, ALBERTA--(MARKET WIRE)--Sep 5, 2008 -- Pyramid Petroleum Inc. (CDNX:PYR.V - News) 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.

http://biz.yahoo.com/iw/080905/0431142.html

I checked with the company and found that they had zero damage from the hurricane. They shut the platforms down for the 6 days but that is better than having damages.

By the way the pres release last week on earnings did not explain that sale - remember form May the announcement was:

Friday , April 25, 2008 11:42ET

"Pyramid Petroleum Inc. (PYDPF) announced that it has agreed to sell all of its 5.84% interest in its Montana and Alberta properties for $6.3 Million USD to an arms-length company. The properties contributed a net 130 boepd to Pyramid."

This property they had bought with stock and the price they used for accounting was about 30 cents - so they sold it for less than the original accounting price but they got cash on the sale and they paid off debt so this was a plus and they take the write off on their taxes. So this was not a loss at all to the company but only too the accounting. They sold it as it was only giving them only 130 barrels a day and it was onshore and they are now only on offshore rigs so better for them to buy more off shore.

They had 12 cents per share cash flow the first quarter and 11 the next so still expect to do over 40 cents in cash flow this year.

Nice to see a picture with quite a few bodies. I also didn't know that Shell and Apache were partners with Pyramid, very interesting.


The Houston Team

http://www.pyramidpetroleum.com/about/about_us.html

Pyramid Petroleum, Inc. (TSX-V: PYR) with its headquarters located in Houston, Texas, is an oil and gas exploration and production company with substantial upside through its strategically located operations in the Gulf of Mexico (“GOM”). Pyramid produces 5,000 boepd from 16 platforms with three facilities in the Green Canyon block (52,184, and CPP) having the potential capacity of up to 55,000 BOPD and 100 MMcfd (current utility of 2250 BOPD and 6.4 MMcfd), of which 1,300 boepd is net to Pyramid. Management is contributing extensive experience in developing and managing domestic and international oil and gas projects to successfully progress Pyramid by taking steps to fill capacity through workovers, recompletions, and production handling for other operators in the immediate area. Working interest (“WI”) partners who participate with the company include Chevron and Apache along with other large independents. These WI have an operated and non-operated production of approximately 1300 boepd. Partners Shell and Apache partake in Pyramid’s ownership (19%) in a 12 inch, 30 mile long oil pipeline (throughput capacity 50,000 bopd). With possession of ideal resources, strong executive leadership, and a dedicated staff, Pyramid is deftly creating a pathway to greater future gains.

They compared to last year same period -

To compare to the last quarter they are almost the same, which is in line with the projections.

1st quarter Revenues, net of royalties, for Q1 2008 were $7,562,892
2nd quarter Revenues, net of royalties, for Q2 2008 were $7,911,854 or a gain of $348,000

1st quarter Cash flow from operations for Q1 2008 was $4,310,406
2nd quarter Cash flow from operations for Q2 2008 was $4,286,158 less by $24,000

1st quarter Net income for Q1 2008 was $1,873,809 (5 cents per share)

We do not know the net this quarter as they took a book loss on the sale of some properties, but imagine the real new is similar to the past quarter.

Pyramid Petroleum Announces 2nd Quarter 2008 Results
CALGARY, ALBERTA--(Marketwire - Aug. 28, 2008) - A correction from source is being issued with respect to the Pyramid Petroleum release disseminated on August 28, 2008 at 16:08 ET. The header for the summary table should have read Q2 2007, instead of Q1 2007. The complete and correct release follows:

Pyramid Petroleum Inc. (TSX VENTURE:PYR) announced today operating results for the 2nd quarter of 2008. The Company's 2008 2nd quarter unaudited interim consolidated financial statements and associated management's discussion and analysis can be found online at www.sedar.com.

Pyramid Petroleum CEO Ilyas Chaudhary stated that, "I am pleased with the operating results, especially the fact that cash flow from operations during the first two quarters of 2008 of 23 cents per share has already exceeded total cash flow from the year 2007 of 22 cents per share. With all fixed debt, other than $1 million long term debt, being fully paid, Pyramid is in a position to accelerate its growth plans by completing capital programs and pursuing selective acquisition opportunities."

2nd QUARTER 2008 HIGHLIGHTS (stated in U.S. dollars)

- Revenues, net of royalties, for Q2 2008 were $7,911,854 compared to $3,216,621 for Q2 2007. The increase is primarily due to additional assets acquired in the Gulf of Mexico during the 2nd quarter of 2007 and higher commodity prices in 2008.

- Cash flow from operations for Q2 2008 was $4,286,158 (11 cents per share) compared to $1,170,513 (3 cents per share) for Q2 2007.

- Net loss for Q2 2008 was $892,913 (2 cents per share) compared to net income of $353,590 (2 cents per share) for Q2 2007. The net loss in the period is due to a recorded book loss - on the disposition of producing properties, which were sold in June 2008.

The following is the summary of financial results for the Company for the three month periods ended June 30, 2008 and 2007.



Q2 2008 Q2 2007
------- -------

Total sales volumes (boe 6:1)
- net of royalties 87,907 58,761
Daily sales volumes (boe 6:1)
- net of royalties 966 646

Statements of Net (Loss) Income and Retained Earnings
USD USD
Oil and gas sales ($),
net of royalties 7,911,854 3,216,621
Operating expenses 2,136,351 880,816
Net oil and gas revenue ($) 5,775,503 2,335,805
Loss on disposition of properties (3,138,990) -
Net (loss) income for the period ($) (892,913) 353,090
Net (loss) income per share
- basic and diluted ($) (0.02) 0.01
Statements of Cash Flows
Cash flow from operations ($) 4,286,158 1,170,513
Cash flow from operations per share ($) 0.11 0.03
Weighted average number of shares
- basic 37,473,541 36,617,458

Disclaimers

Use of the term barrels of oil equivalent ("boe") or thousands of cubic feet of gas equivalent ("Mcfe") may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1bbl 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.

Certainly is the most unpredictable,and,or riskiest time of year to be setting up an offshore drilling rig...

Although its my impression that Pyramid's leases are in relatively shallow water which would lead to less of a threat as a result of being able to employ jack rigs which touch down on the ocean floor and are much more stable.

futrcash

Good effort and thanks for sharing...
Hopefully the weather will continue to cooperate with PYDPF's rework efforts and the price of Oil stabilizes @ these levels.

I continue to accumulate shares of this company as I see some real value in the leases not to mention the value of the platforms themselves and the pipeline!

futrcash

We continue to churn away here at the $1 mark. I would think there cant be that much inventory left at this level and still believe this trades around $2 or more by end of year.

Thanks for the update!

Sent an email to IR asking about workovers and new well drilling program.

Said expect PR in 2 weeks regarding workover program. Q2 report is due about same time.

New well drill program has been delayed again to September. These wells will provide the bulk of the production increases forecast by the company so I hope they get going soon or they won't get finished by yearend and their 3000bpd exit will be in jeopardy.

Of course, 3000bpd is such an agressive goal, I would be happy with anything above 2000boepd!

Bobwins

Yes some nice accumulation over the last month or so and definately some nice volume today on the move higher. Next stop will be to break the $1.15 52-week high on volume, which I believe will be a cakewalk seeing the growth this company is making.

PYR back over $1

http://finance.yahoo.com/q?s=PYR.V

Wouldn't surprise me either to see PYDPF trading significantly higher by eoy!

Seeing as how the ongoing well workovers and the upcoming new development wells will be at least partially funded through continued free cash flow...I really liked the way they mentioned "greater than anticipated production..."as a result of slower than projected depletion.
------------------------------------------
From last Monday's PR " the free cash flow from operations will positively facilitate the ongoing well rework and drilling programs."
-------------------------------------------
It wouldn't surprise me a bit to hear of another lease acquisition as a result of this financial flexibility.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Pyramid receives approval for well workoversFiled from Houston
6/10/2008 7:18:11 PM GMT





HOUSTON: Pyramid Petroleum has received permission from the U.S. Minerals Management Service to begin the re-completion of two wells on Green Canyon Block 184 in the Gulf of Mexico. Upon completion of the A-10 and A-16 wells, Pyramid will seek approval for the re-completion of six more wells in Green Canyon Blocks 184, 52 and 53.



Gross production from the eight wells is expected to increase as much as 1,800 b/d and 2,500 Mcf/d with Pyramid's net increase totaling 450 b/d of oil equivalent. All re-completed wells will be placed in production immediately through existing facilities. The workover programs on the wells are expected to be completed by October 2008. Pyramid will fund its share of the US$1.0 million will be funded from existing cash flow.



Pyramid is operator of the Green Canyon blocks. The platforms are located in 570 feet to 1,760 feet (178 to 536 m) of water and produce between 2,300 b/d and 4,000 Mcf/d. The platforms were designed and constructed by Conoco in 1989 with the capacity to produce 55,000 b/d and 125,000 Mcf/d.



Oil produced from the platforms is shipped through a 30-mile (48 km) 12-inch (30 cm) diameter underwater pipeline in which Pyramid holds an ownership interest of 19 percent. Gas is marketed through a third party gas pipeline. Pyramid holds varying working interests ranging from 16.5 percent to 25 percent in 15,000 acres within the Green Canyon Blocks and in the platform facilities.



Additionally, Pyramid will begin its participation in an exploratory drilling program of four wells, announced April 16, in July 2008. Pyramid is participating for a 20 percent working interest. One prospect will be operated by Pyramid, while the other three prospects will be operated by Houston-based Black Pool Energy


http://www.blackpoolenergy.net/

Interesting private company with an extensive 3d offshore seismic library!

HHmmnn...makes me wonder how this relationship might develop with successful drilling.



PYDPF last @ .967






futrcash






"posts are imo...please confirm by doing "original" dd.
futrcash..."

Probably don't want the hassle of a dual listing. Expensive for a microcap stock. Maybe after they get to 3000boepd, they can afford the accounting fees and the corporate governance that's required for a major exchange listing. Bobwins

Thanks Bobwins,

Why are they only on a Canadian exchange?

Q2 is due by the end of August. I assume they will announce any progress on the workovers and the new well(s). They said the initial workovers would be done by October so not sure when they were going to start.

Bobwins

That seems to have boosted the stock a bit.

When would they announce production increases?

Got to be a very high likely hood of that! Big potential here for sure imo!

It seems logical that with all of these debt payoffs, a strong earnings report will be in store for us.

If i am not mistaken, we will see this earnings report by the end of august.

Can't wait :)

Very Nice! Just noticed the news!

Pyramid is one great story emerging here. I wouldn't be suprised to see this trading over $2 by years end. A hidden undervalued gem here imo. Not to mention the huge exposure we will get once listed on the TSX, which I would think is just around the corner...

Pyramid Petroleum Announces Debt Payoff
Monday August 11, 9:25 am ET


CALGARY, ALBERTA--(MARKET WIRE)--Aug 11, 2008 -- Pyramid Petroleum Inc. (CDNX:PYR.V - News) announces that the debt of $9.1 million taken to acquire Gulf of Mexico properties in April and May 2007 has been paid in full. Accomplishing this in merely 15 months, the only debt remaining is a long term promissory note of $1.0 million to be paid in 2011.
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Pyramid Petroleum CEO Ilyas Chaudhary stated that, "Pyramid, in its tradition for conservative forecasting, had projected to shareholders to retire this debt by year end 2008. Due to a combination of factors such as lower decline rates and increased commodity prices, the said debt was paid down five months earlier. While Pyramid plans to raise funds from convertible debentures, as announced earlier, the free cash flow from operations will positively facilitate the ongoing well rework and drilling programs."

Pyramid Petroleum Inc., with its headquarters located in Houston, Texas, is an oil and gas exploration and production company with substantial upside through its strategically located operations in the Gulf of Mexico Offshore ("GOM"). Pyramid Operates 16 platforms and 51 wells with three facilities in the Green Canyon block (52,184, and CPP) having the potential capacity of up to 55,000 BOPD and 125 MMcfd (current utility of 2250 BOPD and 6.4 MMcfd). Pyramid's net production is about 1200 boepd. Shares of the Company are listed for trading on the TSX Venture Exchange under the symbol 'PYR'.

Looking good. Gap was filled a few weeks ago; now only upside from here. Looks like some nice accumulatin going on right now before earnings come out. As we await Q2 financials, here's a brief look back at Q1 and growth they've shown year over year.

* $0.05 eps and .12 cashflow (stock currently in mid 70s making it incredibly cheap on projected earnings and cash flow); currently trading under 2X projected annual cash flow

* current 1300boepd production; guiding for 3000 boepd exit rate 12/08

Pyramid Petroleum's 1st Quarter 2008 Operational Cash Flow is $0.12 Per Share

CALGARY, May 30, 2008 (Canada NewsWire via COMTEX News Network) --
Pyramid Petroleum, Inc. (TSXV: PYR) announced today the results of the 1st quarter of 2008. The Company's 2008 1st quarter interim financial statements and associated management's discussion and analysis can be found online at www.sedar.com.

<< 1st QUARTER 2008 HIGHLIGHTS - Revenues, net of royalties, for Q1 2008 were $7,562,892 compared to $718,444 for Q1 2007. The increase is primarily due to additional assets acquired in the Gulf of Mexico during the 2nd quarter of 2007. - Cash flow from operations for Q1 2008 was $4,310,406 (12 cents per share) compared to $333,279 (1 cent per share) for Q1 2007. - Net income for Q1 2008 was $1,873,809 (5 cents per share) compared to $115,377 (nil) for Q1 2007. The following is the summary of financial results for the Company for thethree month periods ended March 31, 2008 and 2007. Three months ended March 31 2008 2007 --------------------------- ---- ---- Total sales volumes (boe 6:1) - net of royalties 125,724 17,108 Daily sales volumes (boe 6:1) - net of royalties 1,382 190 Statements of Net Income and Retained Earnings US dollars Oil and gas sales ($), net of royalties 7,562,892 718,444 Oil and gas sales per boe ($) 60.15 41.99 Net oil and gas revenue ($) 5,655,553 525,190 Net oil and gas revenue per boe ($) 44.98 30.70 Net income for the period ($) 1,873,809 115,377 Net income per share - basic and diluted ($) 0.05 - Statements of Cash Flows Cash flow from operations ($) 4,310,406 333,279 Cash flow from operations per share ($) 0.12 0.01 Weighted average number of shares - basic 37,317,595 36,605,095

I bought more today at .80. This is too cheap. Workovers appear to be a cheap low risk way to increase production. Gulf drilling program should be getting underway in August and we should be hearing results in September. Workovers are scheduled to be done by October. Lots of news coming for Pyramid. Bobwins


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