Pyramid oilfeb2012presentation

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<ul><li> 1. Pyramid Oil CompanyIncorporated in 1909 Pyramid OilCompanyIncorporated 1909</li></ul> <p> 2. Safe Harbor StatementCertain statements and information included in this presentation constitute"forward-looking statements" within the meaning of the Federal PrivateSecurities Litigation Reform Act of 1995, including statements regarding thecompletion and testing of wells. Forward-looking statements involve known andunknown risks and uncertainties, which may cause the Companys actualresults in future periods to differ materially from forecasted results. Factors thatcould cause or contribute to such differences include, but are not limited to thevalue of crude oil or the performance of wells. 3. Key DataAs of 11-29-11Stock: AMEX: PDORecent price: $4.0052-week range $3.74 - $9.40Average daily share volume21,000Approximate Market cap $18,700,000Approximate Enterprise Value $13,600,000Shares outstanding 4,678,000Approximate float2,650,000Fiscal year endDec. 31Cash (9-30-11) $5,500,000LT Debt (9-30-10)NilOperating cash flow (9-30-11)$1,950,000 4. Company Overview Independent oil and gas company focused on onshore exploration, development and production Most operations are in Kern County, California one of nations leading oil producing regions Company owns and operates much of its own equipment, including service rigs, mobile pumps, vacuum units and hot oil trucks Strong financial position Significant insider ownership position (~43%) More than 100-year operating history 5. StrategyPyramid seeks to build value by maximizing theproduction potential of its U.S. oil and gas properties.The Company is working to expand its portfolio of oiland gas assets through an active drilling campaign, andalso is exploring potential partnerships with other energycompanies on new domestic, onshore prospects. 6. Operations Pyramid owns and operates 27 oil and gas leases within Kern &amp; Santa Barbara Counties. Of these, 18 were operating in 2010 California Company has potential to operate 122 wells on its California properties. 54 were operatingCalifornia in 2010 Most production currently classified as primary recovery, although certain wells could be considered for secondary recovery programs depending on crude price environmentKern SantaCounty Most oil production is light to intermediate oil Barbara with an average API gravity of 23County Company enjoys 20+ year relationships with its two largest crude customers: ConocoPhillips &amp; Kern Oil &amp; Refining 7. Kern Countys Prolific Oil Production Kern County accounts for approximately 10% of overall U.S. oil production County is home to three of the five largest U.S. oil fields At approximately 400,000 bbls/day, Kern is Californias top oil- producing county County had 81% of the states 52,144 active oil wells in 2009 8. OperationsLostHillsCarneros Creek Edison KernCountyChico MartinezMountain ViewMidwaySunset Pyramids Properties in Kern County, CA 9. Oil ReservesEstimated future net recoverable oil reserves from proved reserves, bothdeveloped and undevelopedCrude Oil (Bbls) 10. PV-10Present value of estimated future net revenues of proved developed reserves,discounted at 10%*$ In Millions* Based on year-end oil and gas prices and lease operating expenses 11. Wells &amp; Acreage Gross and net position in wells and proved acres as of December 31, 2010 WellsProved Acres Gross*Net* Gross**Net**149133 21,3875,844* "Gross wells" represents the total number of wells in which the Company has a working interest."Net wells" represents the number of gross wells multiplied by the percentage of the working intereststherein held by the Company.** "Gross acreage" represents all acres in which the Company has a working interest. "Net acres"represents the aggregate of the working interests of the Company in the gross acres.! 12. Oil and Gas ProductionNet oil and gas production after royalty and other working interest 2006 200720082009 2010Crude Oil 66,000 67,00065,00057,000 60,000 (Bbls)Nat. Gas7,000 5,000 5,0005,000 9,000 (Mcf) 13. Pricing and Production CostsAverage sales prices per barrel or per MCF of crude oil and natural gas,respectively, and production costs per equivalent barrel* for the past five yearsending December 31 20062007 20082009 2010Crude Oil $58.88 $67.83$93.47$57.16 $77.10 Nat. Gas$7.28$7.16 $7.94$4.02 $4.37 Production Costs$22.80 $24.00$27.20$24.20 $26.60*Gas production is converted to equivalent barrels at the rate of 6 MCF per barrel, representingthe estimated relative energy content of gas to oil 14. Revenue$ in millions 15. Net Income$ in millions 16. Statements of Operations HighlightsNine monthsYear ended December 31, ended Sept. 30,In thousands except per share data2008200920102010 2011Revenues $6,611 $3,312$4,836 $3,330 $4,289Operating expenses $1,942 $1,412$1,577 $1,165 $1,283General and administrative$925$1,102 $875 $654 $666Total costs and expenses $5,517 $3,849$4,782 $3,505 $3,563Operating income $1,094 $(537)$54 $145 $726Other income$115 $89$29$40$37Income before income tax provision $1,209 $(449)$83 $185 $763Net Income $1,514 $(189) $246 $273 $751Diluted income per share$0.32 $(0.04)$0.05$0.06$0.16Weighted average number of common shares outstanding4,7134,686 4,6784,7194,688 17. Balance Sheet Highlights($K)December 31,September 30,20102011AssetsCash and short term investments$4,594$5,458Trade accounts receivable $508$532Total current assets $5,665$6,462Oil and gas properties and equipment (successful efforts method)$18,102$19,111Other$4,585$4,612Less: accumulated depletion, depreciation, amortization and valuation allowance ($18,688)($19,928)Total Property and Equipment $3,999$3,794Total Assets$10,630 $11,366LiabilitiesCurrent liabilities $626 $517Long-term debt, net of current maturities$27$39Liability for asset retirement obligation$1,235$1,274Stockholders equity $8,742$9,537Total liabilities and stockholders equity $10,630 $11,366 18. ManagementJohn H. Alexander - Director, President and Chief Executive OfficerPresident and CEO of Pyramid since June 2004Vice president and director of Pyramid from 1986 to 2004Independent oil operator in Orange County, Calif. since 1970Michael D. Herman - Director &amp; Chairman of the BoardChairman of Pyramid since July 2005 and majority shareholder sinceJune 2005 Chairman and CEO of ENSERVCO Corporation (OTCBB: ENSV)Provides water hauling, acidizing, frac heating and hot-oil services Past Chairman and Owner of Key Food Ingredients- Worldwide supplier of dehydrated vegetables from factory in China- Sold in October 2007 19. Investment Considerations Substantial portfolio of new and re-entry welltargets in prolific oil producing region Strong, debt-free balance sheet Lean cost structure Seasonedmanagement team with extensiveindustry expertise 20. Thank youPyramid Oil CompanyIncorporated 1909</p>