pyramid oilfeb2012presentation

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Pyramid Oil Company Incorporated 1909 Pyramid Oil Company Incorporated in 1909

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Page 1: Pyramid oilfeb2012presentation

Pyramid Oil Company

Incorporated 1909

Pyramid Oil Company Incorporated in 1909

Page 2: Pyramid oilfeb2012presentation

Certain statements and information included in this presentation 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.

Safe Harbor Statement

Page 3: Pyramid oilfeb2012presentation

Key Data

Stock: AMEX: PDO Recent price: $4.00 52-week range $3.74 - $9.40 Average daily share volume 21,000 Approximate Market cap $18,700,000 Approximate Enterprise Value $13,600,000 Shares outstanding 4,678,000 Approximate float 2,650,000 Fiscal year end Dec. 31 Cash (9-30-11) $5,500,000 LT Debt (9-30-10) Nil Operating cash flow (9-30-11) $1,950,000

As of 11-29-11

Page 4: Pyramid oilfeb2012presentation

Company Overview   Independent oil and gas company focused on onshore

exploration, development and production

  Most operations are in Kern County, California – one of nation’s 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

Page 5: Pyramid oilfeb2012presentation

Strategy

Pyramid seeks to build value by maximizing the production potential of its U.S. oil and gas properties. The Company is working to expand its portfolio of oil and gas assets through an active drilling campaign, and also is exploring potential partnerships with other energy companies on new domestic, onshore prospects.

Page 6: Pyramid oilfeb2012presentation

Operations

  Pyramid owns and operates 27 oil and gas leases within Kern & Santa Barbara Counties. Of these, 18 were operating in 2010

  Company has potential to operate 122 wells on its California properties. 54 were operating in 2010

  Most production currently classified as primary recovery, although certain wells could be considered for secondary recovery programs depending on crude price environment

  Most oil production is light to intermediate oil with an average API gravity of 23

  Company enjoys 20+ year relationships with its two largest crude customers: ConocoPhillips & Kern Oil & Refining

California

Kern County Santa

Barbara County

California

Page 7: Pyramid oilfeb2012presentation

Kern County’s 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 California's top oil-producing county

  County had 81% of the state's 52,144 active oil wells in 2009

Page 8: Pyramid oilfeb2012presentation

Operations

Kern County

Pyramid’s Properties in Kern County, CA

Carneros Creek

Chico Martinez

Lost Hills

Midway Sunset

Mountain View

Edison

Page 9: Pyramid oilfeb2012presentation

Oil Reserves Estimated future net recoverable oil reserves from proved reserves, both developed and undeveloped

Crude Oil (Bbls)

Page 10: Pyramid oilfeb2012presentation

PV-10

* Based on year-end oil and gas prices and lease operating expenses

Present value of estimated future net revenues of proved developed reserves, discounted at 10%*

$ In Millions

Page 11: Pyramid oilfeb2012presentation

Wells & Acreage

* "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 interests therein 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.!

Gross and net position in wells and proved acres as of December 31, 2010

Wells Proved Acres Gross* Net* Gross** Net**

149 133 21,387 5,844

Page 12: Pyramid oilfeb2012presentation

Oil and Gas Production

2006 2007 2008 2009 2010

Crude Oil (Bbls)

66,000 67,000 65,000 57,000 60,000

Nat. Gas (Mcf)

7,000 5,000 5,000 5,000 9,000

Net oil and gas production after royalty and other working interest

Page 13: Pyramid oilfeb2012presentation

Pricing and Production Costs

2006 2007 2008 2009 2010

Crude 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

Average sales prices per barrel or per MCF of crude oil and natural gas, respectively, and production costs per equivalent barrel* for the past five years ending December 31

*Gas production is converted to equivalent barrels at the rate of 6 MCF per barrel, representing the estimated relative energy content of gas to oil

Page 14: Pyramid oilfeb2012presentation

Revenue

$ in millions

Page 15: Pyramid oilfeb2012presentation

Net Income

$ in millions

Page 16: Pyramid oilfeb2012presentation

Statements of Operations Highlights

Year ended December 31, Nine months ended Sept. 30,

In thousands except per share data 2008 2009 2010 2010 2011 Revenues $6,611 $3,312 $4,836 $3,330 $4,289

Operating expenses $1,942 $1,412 $1,577 $1,165 $1,283

General and administrative $925 $1,102 $875 $654 $666

Total costs and expenses $5,517 $3,849 $4,782 $3,505 $3,563

Operating income $1,094 $(537) $54 $145 $726

Other income $115 $89 $29 $40 $37

Income before income tax provision $1,209 $(449) $83 $185 $763

Net Income $1,514 $(189) $246 $273 $751

Diluted income per share $0.32 $(0.04) $0.05 $0.06 $0.16

Weighted average number of common shares outstanding 4,713 4,686 4,678 4,719 4,688

Page 17: Pyramid oilfeb2012presentation

Balance Sheet Highlights ($K) December 31,

2010 September 30,

2011 Assets Cash and short term investments $4,594 $5,458 Trade accounts receivable $508 $532

Total current assets $5,665 $6,462

Oil and gas properties and equipment (successful efforts method) $18,102 $19,111

Other $4,585 $4,612

Less: accumulated depletion, depreciation, amortization and valuation allowance ($18,688) ($19,928)

Total Property and Equipment $3,999 $3,794

Total Assets $10,630 $11,366

Liabilities Current liabilities $626 $517

Long-term debt, net of current maturities $27 $39

Liability for asset retirement obligation $1,235 $1,274 Stockholders’ equity $8,742 $9,537

Total liabilities and stockholders equity $10,630 $11,366

Page 18: Pyramid oilfeb2012presentation

Management

Michael D. Herman - Director & Chairman of the Board • Chairman of Pyramid since July 2005 and majority shareholder since June 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

John H. Alexander - Director, President and Chief Executive Officer • President and CEO of Pyramid since June 2004 • Vice president and director of Pyramid from 1986 to 2004 • Independent oil operator in Orange County, Calif. since 1970

Page 19: Pyramid oilfeb2012presentation

Investment Considerations

 Substantial portfolio of new and re-entry well targets in prolific oil producing region

 Strong, debt-free balance sheet  Lean cost structure

 Seasoned management team with extensive industry expertise

Page 20: Pyramid oilfeb2012presentation

Pyramid Oil Company

Incorporated 1909

Thank you