Executive Summary
Pyramid Petroleum Inc (“Pyramid” or “the Company”) is an E&P company primarily focused on Gulf of Mexico (“GOM”) operations. Pyramid’s first major acquisition was to acquire interests in the Marquette and Joliette fields located in Green Canyon 184/52 Blocks (“GC Block”) in GOM and the High Island Field located in Blocks 160 in Federal Waters (“HI Block”). Within a year of the acquisition, Pyramid elected to become the Operator of the GC and HI Fields. For the 3rd quarter 2008, the average gross production from the operated fields was 2,400 bopd and 6.0 mmcfd of which Pyramid’s interests in the fields ranges from 17% to 50%. The GC Block platforms were constructed in 1989 and have produced 22.0 MBbls and 65 BCF with a throughput capacity of 55,000 bopd and 125 mmcfd. The Company plans to add additional capacity by (1) negotiating with adjacent operators to handle their production through GC Block facilities and (2) drilling additional exploratory and developmental wells.
The HI Block has to date produced some 525 BCF. The Company is aggressively reviewing certain structures for developmental and exploratory drilling potentials. Three proved locations have been delineated thus far. A study is underway to seek deep potential. The Company plans to drill all three locations in the first half of 2009, and if successful, expects to add about 15 BCF for its ownership share. Pyramid has a 50% working interest in the HI Block and current production from three wells is 1.5 mmcfd.
In addition to the operated fields, Pyramid has a 12.5% working interest in Vermillion 331 and Mustang 804, operated by ERT and Woodside, respectively. Pyramid’s average share of production for the 3rd quarter 2008 was 125 BOPD and 1.2 Mmcfd.
With the goal of possessing a large portfolio of diversified reserves, Pyramid has also sought selective farm-outs, acquired land in Federal land sales and is seeking out some selective international synergistic opportunities. While Pyramid itself will continue its focus to build production and reserves in the Gulf of Mexico, the Company will participate with selected industry or corporate partners to build its reserve base and cash flow within the forecasted time frame. To this end, Pyramid has secured exploration lands in Pakistan, has a lead on an acquisition in Gabon and has invested as a non-operating partner in US based on shore properties. Pyramid is currently seeking additional working interest partners to take a lead operators’ position in Pakistan, Gabon and US based domestic operations.
The Company’s major growth in 2009 is forecasted through exploratory and developmental drilling in the GOM. Pyramid will embark on a 10 well drilling program in 2009 on selective locations which can be readily placed on production without building costly infrastructures.
Long-term Goals: (2010-2011)
- Development of discovered fields
- Build cash flow
- Expand exploratory drilling to deep waters
- Build on Company personnel’s’ expertise in exploration and operations
- Seek exit for maximum shareholder return