PYRAMID OIL COMPANY STATEMENTS OF OPERATIONS Three months ended Twelve months ended December 31, December 31, ----------------------- ----------------------- 2009 2008 2009 2008 ----------- ----------- ----------- ----------- REVENUES: Oil and gas sales $ 970,536 $ 898,427 $ 3,311,895 $ 6,610,628 Gain on sale of fixed assets 0 0 0 500 ----------- ----------- ----------- ----------- 970,536 898,427 3,311,895 6,611,128 ----------- ----------- ----------- ----------- COSTS AND EXPENSES: Operating expenses 388,382 508,614 1,411,721 1,941,888 Exploration costs 0 0 0 -28,812 General and administrative 270,871 259,832 924,676 1,001,791 Stock based compensation 0 169,000 209,935 167,400 Taxes, other than income and payroll taxes 33,131 32,124 147,724 131,215 Provision for depletion, depreciation and amortization 171,073 420,924 639,738 944,168 Valuation allowances 358,757 1,162,379 358,757 1,162,379 Accretion expense 23,922 2,364 41,618 68,832 Other costs and expenses 26,391 26,875 115,164 128,090 ----------- ----------- ----------- ----------- 1,272,527 2,582,112 3,849,333 5,516,951 ----------- ----------- ----------- ----------- OPERATING INCOME (LOSS) -301,991 -1,683,685 -537,438 1,094,177 ----------- ----------- ----------- ----------- OTHER INCOME (EXPENSE): Interest income 7,049 24,120 75,427 88,792 Other income 3,600 4,400 14,400 28,431 Interest expense -241 -472 -1,313 -2,235 ----------- ----------- ----------- ----------- 10,408 28,048 88,514 114,988 ----------- ----------- ----------- ----------- INCOME (LOSS) BEFORE INCOME TAX PROVISION (BENEFIT) -291,583 -1,655,637 -448,924 1,209,165 Income tax provision (benefit) Current -14,200 73,458 -195,282 312,710 Deferred -94,855 -796,245 -64,355 -617,245 ----------- ----------- ----------- ----------- -109,055 -722,787 -259,637 -304,535 ----------- ----------- ----------- ----------- NET INCOME (LOSS) $ -182,528 $ -932,850 $ -189,287 $ 1,513,700 =========== =========== =========== =========== Basic Income Per Common Share $ -0.04 $ -0.20 $ -0.04 $ 0.32 =========== =========== =========== =========== Diluted Income Per Common Share $ -0.04 $ -0.20 $ -0.04 $ 0.32 =========== =========== =========== =========== Basic weighted average number of common shares outstanding 4,677,728 4,677,728 4,677,728 4,677,728 =========== =========== =========== =========== Diluted weighted average number of common shares outstanding 4,686,249 4,713,055 4,686,249 4,713,055 =========== =========== =========== =========== PYRAMID OIL COMPANY BALANCE SHEETS ASSETS December 31, December 31, 2009 2008 (Unaudited) (Audited) ------------ ------------ CURRENT ASSETS: Cash and cash equivalents $ 1,438,825 $ 1,793,563 Short-term investments 3,344,061 2,789,099 Trade accounts receivable 375,954 213,588 Income taxes receivable 124,281 0 Crude oil inventory 62,760 82,025 Deferred income taxes 196,200 108,000 Prepaid expenses and other assets 169,595 186,353 ------------ ------------ TOTAL CURRENT ASSETS 5,711,676 5,172,628 ------------ ------------ PROPERTY AND EQUIPMENT, at cost Oil and gas properties and equipment (successful efforts method) 16,085,228 15,755,472 Capitalized asset retirement costs 382,550 382,550 Drilling and operating equipment 2,109,993 2,109,993 Land, buildings and improvements 1,065,371 1,065,371 Automotive, office and other property and equipment 1,160,617 1,162,324 ------------ ------------ 20,803,759 20,475,710 Less: accumulated depletion, depreciation, amortization and valuation allowance -17,125,834 -16,147,157 ------------ ------------ 3,677,925 4,328,553 ------------ ------------ OTHER ASSETS Deposits 250,000 250,000 Deferred income taxes 485,400 509,245 Other Assets 17,013 17,013 ------------ ------------ $ 10,142,014 $ 10,277,439 ============ ============ PYRAMID OIL COMPANY BALANCE SHEETS LIABILITIES AND STOCKHOLDERS' EQUITY December 31, December 31, 2009 2008 (Unaudited) (Audited) ------------ ------------ CURRENT LIABILITIES: Accounts payable $ 88,170 $ 40,820 Accrued professional fees 138,381 130,261 Accrued taxes, other than income taxes 62,310 76,222 Accrued payroll and related costs 51,606 50,451 Accrued royalties payable 159,933 132,472 Accrued insurance 54,947 59,096 Accrued income taxes 0 239,815 Current maturities of long-term debt 20,640 23,901 ------------ ------------ TOTAL CURRENT LIABILITIES 575,987 753,038 ------------ ------------ LONG-TERM DEBT, net of current maturities 0 20,640 ------------ ------------ LIABILITY FOR ASSET RETIREMENT OBLIGATION 1,193,324 1,151,706 ------------ ------------ COMMITMENTS 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; 4,677,728 shares issued and outstanding 1,515,945 1,306,010 Retained earnings 6,856,758 7,046,045 ------------ ------------ 8,372,703 8,352,055 ------------ ------------ $ 10,142,014 $ 10,277,439 ------------ ------------
Contact Information: CONTACTS: John H. Alexander President and CEO Pyramid Oil Company 661-325-1000 Geoff High Principal Pfeiffer High Investor Relations, Inc. 303-393-7044