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For Immediate Release: Thursday, June 4, 2009

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA.

PYRAMID PETROLEUM ANNOUNCES 2008 YEAR END RESERVES INFORMATION

Calgary, Alberta - Pyramid Petroleum Inc. (TSXV: PYR) today announced the Company’s proved plus probable (“P+P”) reserves as of December 31, 2008. Pyramid’s reserves for its offshore properties were evaluated by Netherland Sewell & Associates, Inc. (“NSAI”). NI 51-101 disclosure based on these reserves will be filed on SEDAR.

At December 31, 2008 proved plus probable reserves decreased to 2.3 million barrels of oil equivalent (BOE) from 2.5 million at December 31, 2007, a decrease of 8%. Total proved reserves decreased 32% from 2.2 million BOE at December 31, 2007 to 1.5 million at December 31, 2008. The decrease of 0.7 million was due primarily to the previously announced disposition of properties in Montana and Alberta (1.0 million BOE), offset by increases of 0.5 million BOE for technical revisions to existing properties. A decrease in commodity prices from US$89.61 in 2007 to US$56.56 in 2008 contributed to the decrease in the value of reserves at December 31, 2008.

The value of before tax proved and probable reserves (NPV 10%) was US$42.9 million, a decrease of 15% from US$49.5 million at December 31, 2007, based on forecast prices. The value of before tax proved reserves (NPV 10%) however decreased from US$40.3 million to US$20.1 million, based on forecast prices, a drop of roughly 50%, which again is due to the sale of certain assets and changes in year-end pricing.

The following tables provide additional information regarding the reserves and applicable estimated net present values.

 

About Pyramid

Pyramid Petroleum is an oil and gas exploration and production company based in Houston, Texas. The Company’s focus is on development of domestic and international hydrocarbon projects. Pyramid's primary assets are producing properties located in the Gulf of Mexico.

The Company’s shares are listed on the TSX Venture Exchange under the symbol PYR.

Disclaimers

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, future plans and objectives,  including the timing of filing of Pyramid's Required Disclosure and Interim Filings, constitute "forward-looking information" within the meaning of applicable securities legislation. Such forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Pyramid to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

 

The forward-looking information contained in this news release represents the expectations of Pyramid as at June 3, 2009, and, accordingly, is subject to change after such date. However, Pyramid expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events of otherwise, except as required by applicable law.

 

For further information, please contact:

Jim Frazier,CFO
Pyramid Petroleum, Inc.
info@pyramidpetroleum.com
281.822.0801
www.pyramidpetroleum.com

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