Yuma Energy 8-K Pyramid Oil Company Reports Third Quarter

 

Pyramid Oil Company   Exhibit 99.1
FOR IMMEDIATE RELEASE:

Pyramid Oil Company Reports Third Quarter

and Nine-Month Financial Results

Selected Highlights:

· 29% Increase in Nine-month Oil and Gas Sales Drives Strong Improvements in Year-to-date Operating Income and Net Income

· Operating Cash Flow Reaches $2.0 Million at Nine-Month Mark

· Cash, Cash Equivalents and Short-term Investments increase to $5.5 Million from $4.6 Million at December 31, 2011

BAKERSFIELD, Calif. – November 14, 2011 – Pyramid Oil Company (Amex: PDO) today announced financial results for its year-to-date and third quarter periods ended September 30, 2011.

Through nine months, oil and gas sales increased 29% to $4.3 million from $3.3 million in the nine-month period last year. The increase was due to higher average crude oil prices, which increased by $29.50 per average barrel of oil equivalent (BOE) to $103.72 from $74.22 per average BOE in the comparable 2010 period.  Total revenue increased 18% to $4.3 million from $3.7 million in last year’s nine-month period.  Total revenue in the 2010 nine-month period included a $321,000 gain on the third quarter sale of a portion of the Company’s interest in a Texas natural gas joint venture.

Nine-month operating income improved to $726,000 compared with $145,000 during the 2010 nine-month period.  Net income increased 175% to $751,000, or $0.16 per share, from net income of $273,000, or $0.06 per share, during the same period last year.  Pyramid reported cash flow from operations of $2.0 million, up 38% from $1.4 million during the first nine months of fiscal 2010.

For the third quarter, revenue from oil and gas sales increased 29% to $1.4 million from $1.1 million in the same quarter last year.  Average crude oil prices during the quarter increased $31.80 per average BOE to $105.06 from $73.26 per average BOE in the 2010 third quarter.  Total revenue was $1.4 million, flat versus revenue of $1.4 million in last year’s third quarter, which included the previously mentioned $321,000 gain on the sale of fixed assets.

Third quarter operating loss, which included a $673,000 non-cash valuation allowance associated with Pyramid’s Pike 1-H horizontal joint venture well, was $162,000 versus operating income of $499,000 in last year’s third quarter.  Pyramid and joint venture partner Victory Oil Company continued efforts to address production challenges associated with the Pike 1-H.  However, the well has not responded favorably to a range of stimulation efforts.  Third quarter net income was $4,000, or $0.00 per share, versus net income of $394,000, or $0.08 per share, in the year-ago third quarter.

Pyramid’s balance sheet at September 30, 2011, included $5.5 million in cash, cash equivalents and short-term investments; up from $4.7 million at the end of the second quarter and $4.6 million at December 31, 2010.  Total current assets at September 30, 2011, were $6.5 million and working capital was $5.9 million.  Long-term debt was $39,000.

“We have achieved solid financial growth through the first three quarters of 2011, and we expect to finish the year with strong improvements in revenue, profitability and operating cash flow,” said John Alexander, president and CEO.  “Despite recent challenges with the Pike 1-H, we remain focused on enhancing shareholder value through increased production.  We have re-prioritized our drilling plans, and now intend to focus on new well opportunities that could generate higher production volumes than the re-drill program previously under consideration.  The first of our new wells is slated for early next year in our productive Carneros Creek field.  Once contract rigs are more accessible, we also intend to revisit various well re-entry opportunities.  The growing strength of our balance sheet clearly gives us the flexibility to pursue a range of options for enhancing our production portfolio.”

About Pyramid Oil Company

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

###

CONTACTS:
John H. Alexander	Geoff High
President and CEO	Principal
Pyramid Oil Company	Pfeiffer High Investor Relations, Inc.
661-325-1000	303-393-7044

PYRAMID OIL COMPANY

STATEMENTS OF OPERATIONS

(UNAUDITED)

	Three months ended September 30,				Nine months ended September 30,
	2011		2010		2011		2010
REVENUES:
Oil and gas sales	$	1,412,342	$	1,099,464	$	4,287,669	$	3,329,594
Gain on sale of fixed assets		500		320,556		1,512		320,556
		1,412,842		1,420,020		4,289,181		3,650,150
COSTS AND EXPENSES:
Operating expenses		421,405		386,897		1,282,950		1,165,209
General and administrative		222,583		195,838		666,375		653,793
Stock based compensation		0		113,500		43,743		113,500
Taxes, other than income and payroll taxes		37,399		39,654		101,358		97,313
Valuation allowances		673,000		0		727,384		867,468
Provision for depletion,depreciation and amortization		184,208		151,855		595,631		498,115
Accretion expense		5,229		6,664		26,793		18,775
Other costs and expenses		31,280		26,403		118,964		90,946
		1,575,104		920,811		3,563,198		3,505,119
OPERATING INCOME (LOSS)		-162,262		499,209		725,983		145,031
OTHER INCOME (EXPENSE):
Interest income		12,193		13,521		38,704		29,904
Other income		0		3,600		500		9,997
Interest expense		-568		-30		-2,459		-333
		11,625		17,091		36,745		39,568
INCOME (LOSS) BEFORE INCOME TAX PROVISION (BENEFIT)		-150,637		516,300		762,728		184,599
Income tax provision (benefit)
Current		52,700		47,200		163,300		92,100
Deferred		-207,600		75,300		-151,500		-180,100
		-154,900		122,500		11,800		-88,000
NET INCOME	$	4,263	$	393,800	$	750,928	$	272,599
BASIC INCOME PER COMMON SHARE	$	0.00	$	0.08	$	0.16	$	0.06
DILUTED INCOME PER COMMON SHARE	$	0.00	$	0.08	$	0.16	$	0.06
Weighted average number of common shares outstanding		4,683,853		4,677,728		4,682,492		4,677,728
Diluted weighted average number of common shares outstanding		4,685,177		4,720,014		4,688,465		4,719,276

PYRAMID OIL COMPANY

BALANCE SHEETS

ASSETS

	September 30,		December 31,
	2011		2010
	(Unaudited)		(Audited)
CURRENT ASSETS:
Cash and cash equivalents	$	2,267,006	$	1,535,532
Short-term investments		3,190,618		3,058,528
Trade accounts receivable		532,333		508,457
Joint interest billing receivable		10,776		0
Income taxes receivable		9,498		0
Crude oil inventory		96,697		86,361
Prepaid expenses and other assets		92,661		230,876
Deferred income taxes		262,500		245,100
TOTAL CURRENT ASSETS		6,462,089		5,664,854
PROPERTY AND EQUIPMENT, at cost
Oil and gas properties and equipment (successful efforts method)		19,110,614		18,101,529
Capitalized asset retirement costs		401,242		389,463
Drilling and operating equipment		1,956,371		1,946,805
Land, buildings and improvements		1,073,918		1,066,571
Automotive, office and other property and equipment		1,180,042		1,182,613
		23,722,187		22,686,981
Less: accumulated depletion, depreciation, amortization and valuation allowances		-19,928,176		-18,687,908
TOTAL PROPERTY AND EQUIPMENT		3,794,011		3,999,073
OTHER ASSETS
Deferred income taxes		842,600		708,500
Deposits		250,000		250,000
Other Assets		17,380		7,380
TOTAL OTHER ASSETS		1,109,980		965,880
TOTAL  ASSETS	$	11,366,080	$	10,629,807

PYRAMID OIL COMPANY

BALANCE SHEETS

LIABILITIES AND STOCKHOLDERS' EQUITY

	September 30,		December 31,
	2011		2010
	(Unaudited)		(Audited)
CURRENT LIABILITIES:
Accounts payable	$	48,651	$	73,374
Accrued professional fees		123,045		122,506
Accrued taxes, other than income taxes		32,143		63,361
Accrued payroll and related costs		77,416		60,365
Accrued royalties payable		203,983		193,052
Accrued insurance		0		86,888
Accrued income taxes		0		12,800
Current maturities of long-term debt		32,015		13,473
TOTAL CURRENT LIABILITIES		517,253		625,819
LONG TERM DEBT, net of current maturites		38,541		26,946
LIABILITY FOR ASSET RETIREMENT OBLIGATIONS		1,273,765		1,235,193
TOTAL LIABILITIES		1,829,559		1,887,958
COMMITMENTS AND CONTINGENCIES
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;4,683,853 shares issued and outstanding		1,682,971		1,639,228
Retained earnings		7,853,550		7,102,621
TOTAL STOCKHOLDERS' EQUITY		9,536,521		8,741,849
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	11,366,080	$	10,629,807