For Immediate Release: Monday, March 30, 2009
Pyramid to raise up to $15.0 million by way of convertible debenture offering
Calgary, Alberta - Pyramid Petroleum Inc. (TSX-V: PYR) (“Pyramid” or the “Company”) is pleased to announce that it has engaged Research Capital Corporation to act as lead agent (the “Agent”) on a best-efforts basis, for an offering (the “Offering”) of up to $15.0 million in convertible debentures of Pyramid. The Agent has been granted an option to increase the size of the Offering by up to an additional $5.0 million, bringing the potential total gross proceeds to the Company from the Offering to $20.0 million.
The indicative terms of the Offering include, among other terms, that the convertible debentures shall have a term to maturity of four years, shall bear a annual coupon rate ranging between 8.0% and 40.0% paid quarterly based on an index of oil and gas prices (the first coupon payment having an interest rate of 12.0%), and shall be convertible into common shares of the Company at any time following the closing of the Offering at a price of $0.85 per share.
Proceeds from the Offering shall be used primarily to fund development drilling, work-overs, the acquisition of additional working interests in Pyramid’s existing wells, and for working capital.
Pyramid currently anticipates the Offering will close in April 2009; however closing may occur at an alternate date determined by the Company and Agent.
About Pyramid Petroleum
Pyramid Petroleum Inc. is an oil and gas exploration and production company with substantial upside growth through its strategically located offshore operations in the Gulf of Mexico. Shares of the Company are listed for trading on the TSX Venture Exchange under the symbol “PYR.”
Disclaimers
The TSX Venture Exchange has neither approved nor disapproved the contents hereof. BOEs derived by converting gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil (6 Mcf: 1 bbl). BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Except for statements of historical fact, all statements in this press release, without limitation, regarding new projects and future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements.
For further information, please contact:
Jim Frazier,
CFO
jfrazier@pyramidgom.com
281.822.0801 x 145
or
Michael Borovec,
Director of Investor Relations
mborovec@pyramidgom.com
281.822.0801 x 123
www.pyramidpetroleum.com