BAKERSFIELD, CA--(Marketwire - August 16, 2010) - Pyramid Oil Company (
Second quarter revenue increased 53% to $1.2 million from $802,000 in the second quarter a year ago. The increase resulted both from higher average crude oil prices and increased production. Average crude prices increased $18.94 per barrel of oil equivalent (BOE) to $74.03 from $55.09 per average BOE in the second quarter a year ago. The increased crude production, which was up by approximately 2,000 barrels versus the second quarter last year, resulted from a new well on the Company's Anderson property, and from higher production volumes on Pyramid's Mountain View property.
Pyramid recorded a non-cash valuation allowance of $842,000 associated with a previously announced unsuccessful well drilled during the first half of 2010 on its Mountain View property. As a result, the Company reported a second quarter operating loss of $583,000 compared with an operating loss of $208,000 in the same quarter a year ago. Second quarter net loss was $302,000, or $0.06 per diluted share, versus a net loss of $39,000, or $0.01 per diluted share, in the second quarter last year.
Pyramid generated operating cash flow of $706,000 during the first six months of fiscal 2010, which compares to cash used in operations of $69,000 during the same period last year. At June 30, 2010, the Company's balance sheet was free of long-term debt and included $4.0 million in cash, cash equivalents and short-term investments; total current assets of $4.9 million, and working capital of $4.5 million. Subsequent to the close of the quarter, Pyramid sold a portion of its working interest in a Texas natural gas joint venture, which provided the Company with an additional $306,000 in cash.
"Our top-line performance is benefitting from the improved price environment for crude, as well as our ongoing efforts to ramp up our sales volumes," said John Alexander, president and CEO. "The well we drilled earlier in the year on our Anderson property represented the first step in an aggressive and wide-ranging program focused on increasing production. Early in the current quarter, we acquired a 30% interest in a shallow oil and gas prospect located in Menard County, Texas, and anticipate the first well in the project will be drilled later this year. We also plan to commence re-drilling operations on up to two wells on our Mountain View properties, and are awaiting a contract-drilling rig scheduled for arrival in late September.
"We have been in active discussions with a private California oil company regarding the establishment of a joint venture that would combine select interests of both companies and involve a multi-well drilling program that could commence later this year. While we have not yet entered into any formal joint venture agreement, we are encouraged by the tone of the discussions and the potential of what could be a long-term collaborative drilling project.
"While increased demand for contract rigs has pushed out the start dates on certain projects, we nevertheless expect to make meaningful progress on our drilling program and long-term growth strategy during the balance of the fiscal year."
For the six-month period, Pyramid reported revenue of $2.2 million, up 60% versus $1.4 million at the six-month mark last year. Operating loss was $354,000 versus an operating loss of $427,000 in the six-month period a year ago. Net loss was $121,000, or $0.03 per diluted share, versus a net loss of $228,000, or $0.05 per diluted share, in the same period last year.
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.
| PYRAMID OIL COMPANY | |||||||||||||
| STATEMENTS OF OPERATIONS | |||||||||||||
| (UNAUDITED) | |||||||||||||
| Three months ended June 30, | Six months ended June 30, | ||||||||||||
| 2010 | 2009 | 2010 | 2009 | ||||||||||
| REVENUES: | $ | 1,228,391 | $ | 801,901 | $ | 2,230,130 | $ | 1,395,946 | |||||
| COSTS AND EXPENSES: | |||||||||||||
| Operating expenses | 438,392 | 325,189 | 778,312 | 676,539 | |||||||||
| General and administrative | 250,588 | 229,797 | 457,955 | 455,102 | |||||||||
| Severance award agreement | 0 | 209,935 | 0 | 209,935 | |||||||||
| Taxes, other than incomeand payroll taxes | 29,839 | 32,486 | 57,659 | 80,784 | |||||||||
| Provision for depletion, depreciation and amortization | 196,873 | 160,142 | 346,260 | 318,456 | |||||||||
| Valuation allowances | 842,327 | 0 | 867,468 | 0 | |||||||||
| Accretion expense | 5,898 | 5,932 | 12,111 | 11,798 | |||||||||
| Other costs and expenses | 47,303 | 45,975 | 64,543 | 70,145 | |||||||||
| 1,811,220 | 1,009,456 | 2,584,308 | 1,822,759 | ||||||||||
| OPERATING INCOME (LOSS) | -582,829 | -207,555 | -354,178 | -426,813 | |||||||||
| OTHER INCOME (EXPENSE): | |||||||||||||
| Interest income | 8,430 | 21,395 | 16,383 | 47,870 | |||||||||
| Other income | 3,600 | 3,600 | 6,397 | 7,200 | |||||||||
| Interest expense | -122 | -358 | -303 | -773 | |||||||||
| 11,908 | 24,637 | 22,477 | 54,297 | ||||||||||
| INCOME (LOSS) BEFORE INCOME TAX PROVISION (BENEFIT) | -570,921 | -182,918 | -331,701 | -372,516 | |||||||||
| Income tax provision (benefit) | |||||||||||||
| Current | 24,900 | -34,200 | 44,900 | -137,583 | |||||||||
| Deferred | -293,950 | -109,800 | -255,400 | -6,800 | |||||||||
| -269,050 | -144,000 | -210,500 | -144,383 | ||||||||||
| NET INCOME (LOSS) | $ | -301,871 | $ | -38,918 | $ | -121,201 | $ | -228,133 | |||||
| BASIC INCOME (LOSS) PER COMMON SHARE | $ | -0.06 | $ | -0.01 | $ | -0.03 | $ | -0.05 | |||||
| DILUTED INCOME (LOSS) PER COMMON SHARE | $ | -0.06 | $ | -0.01 | $ | -0.03 | $ | -0.05 | |||||
| Basic and diluted weighted average number of common shares outstanding | 4,677,728 | 4,677,728 | 4,677,728 | 4,677,728 | |||||||||
| PYRAMID OIL COMPANY | |||||||
| BALANCE SHEETS | |||||||
| ASSETS | |||||||
| June 30, | December 31, | ||||||
| 2010 | 2009 | ||||||
| (Unaudited) | (Audited) | ||||||
| CURRENT ASSETS: | |||||||
| Cash and cash equivalents | $ | 903,380 | $ | 1,438,825 | |||
| Short-term investments | 3,075,960 | 3,344,061 | |||||
| Trade accounts receivable | 529,553 | 375,954 | |||||
| Income taxes receivable | 51,100 | 124,281 | |||||
| Crude oil inventory | 64,833 | 62,760 | |||||
| Deferred income taxes | 196,200 | 196,200 | |||||
| Prepaid expenses and other assets | 97,448 | 169,595 | |||||
| TOTAL CURRENT ASSETS | 4,918,474 | 5,711,676 | |||||
| PROPERTY AND EQUIPMENT, at cost | |||||||
| Oil and gas properties and equipment (successful efforts method) | 17,572,902 | 16,085,228 | |||||
| Capitalized asset retirement costs | 389,463 | 382,550 | |||||
| Drilling and operating equipment | 2,109,993 | 2,109,993 | |||||
| Land, buildings and improvements | 1,066,571 | 1,065,371 | |||||
| Automotive, office and other property and equipment | 1,164,636 | 1,160,617 | |||||
| 22,303,565 | 20,803,759 | ||||||
| Less: accumulated depletion, depreciation, amortization and valuation allowance | -18,335,247 | -17,125,834 | |||||
| TOTAL PROPERTY AND EQUIPMENT | 3,968,318 | 3,677,925 | |||||
| OTHER ASSETS | |||||||
| Deposits | 250,000 | 250,000 | |||||
| Deferred income taxes | 740,800 | 485,400 | |||||
| Other Assets | 17,013 | 17,013 | |||||
| TOTAL OTHER ASSETS | 1,007,813 | 752,413 | |||||
| TOTAL ASSETS | $ | 9,894,605 | $ | 10,142,014 | |||
| PYRAMID OIL COMPANY | |||||||
| BALANCE SHEETS | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| June 30, | December 31, | ||||||
| 2010 | 2009 | ||||||
| (Unaudited) | (Audited) | ||||||
| CURRENT LIABILITIES: | |||||||
| Accounts payable | $ | 50,905 | $ | 88,170 | |||
| Accrued professional fees | 103,890 | 138,381 | |||||
| Accrued taxes, other than income taxes | 4,194 | 62,310 | |||||
| Accrued payroll and related costs | 55,324 | 51,606 | |||||
| Accrued royalties payable | 190,095 | 159,933 | |||||
| Accrued insurance | 18,010 | 54,947 | |||||
| Current maturities of long-term debt | 8,336 | 20,640 | |||||
| TOTAL CURRENT LIABILITIES | 430,754 | 575,987 | |||||
| LIABILITY FOR ASSET RETIREMENT OBLIGATION | 1,212,349 | 1,193,324 | |||||
| TOTAL LIABILITIES | 1,643,103 | 1,769,311 | |||||
| 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 | 1,515,945 | |||||
| Retained earnings | 6,735,557 | 6,856,758 | |||||
| TOTAL STOCKHOLDERS' EQUITY | 8,251,502 | 8,372,703 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 9,894,605 | $ | 10,142,014 | |||
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