Oil

Overview

Pyramid Petroleum, Inc. (TSX-V: PYR) with its headquarters located in Houston, Texas, is an oil and gas exploration and production company with substantial upside through its strategically located operations in the Gulf of Mexico (“GOM”). Pyramid produces 5,000 boepd from 16 platforms with three facilities in the Green Canyon block (52,184, and CPP) having the potential capacity of up to 55,000 BOPD and 100 MMcfd (current utility of 2250 BOPD and 6.4 MMcfd), of which 1,300 boepd is net to Pyramid. Management is contributing extensive experience in developing and managing domestic and international oil and gas projects to successfully progress Pyramid by taking steps to fill capacity through workovers, recompletions, and production handling for other operators in the immediate area. Working interest (“WI”) partners who participate with the company include Chevron and Apache along with other large independents. These WI have an operated and non-operated production of approximately 1300 boepd. Partners Shell and Apache partake in Pyramid’s ownership (19%) in a 12 inch, 30 mile long oil pipeline (throughput capacity 50,000 bopd). With possession of ideal resources, strong executive leadership, and a dedicated staff, Pyramid is deftly creating a pathway to greater future gains.

Exploration and Production operations in the Gulf of Mexico

• Strong 2P reserve base of 2.5MMboe; expected to increase through work-overs, drilling, and selective acquisitions
• Pyramid to participate in at least four new, hi-quality drilling prospects, supported by 3-D seismic in 2008 whose unrisked reserves are 3.3MMboe net
• Actively negotiating to explore a world class 3-D defined prospect with other Operators and participate in increasing production in the Green Canyon field
• Current net production of approx 1382 boepd; Oil 40% of net production
• Annualized EBITDA of $17.5 million (4th Q 2007 annualized)
• Debt of about $3.0 million.

Assets

Varying working interests (1.25% to 50%) in:

• 106 wells offshore, of which 62 are producing
• Pyramid operates properties with gross production of approx 5,000 boepd
• Pyramid’s net production is approx 1300 boepd
• Pyramid’s net proven and probable reserves 2.5 MMBOE
• Ownership and Operatorship of major offshore oil and gas facilities
• Green Canyon 184 Tension Leg Platform
• Green Canyon 52 Central Processing Platform

Pyramid Strategy

• To build an operational core base in Gulf of Mexico, USA. This region has substantial remaining and unexplored reserves.
• To build reserves and cash flow through acquisition, exploration and exploitation.
• Increase daily production levels from an annual rate of approximately 1,382 to 2,500 boepd.
• Increase reserve from current estimates of $49 Million PV10.
• To divest the Company on or before 2011 as an exit for its shareholders.

Chief Properties

GC 184/52

• Gross production 2,300 bopd and 3.0 mmcfd.
• Pyramid is the Operator and owns 16.67% to 25% WI.
• Gross land position 15,000 acres.
• Production to date some 33 Million Barrels of oil and 107 BCF of gas.
• Substantial behind pipe potential which can be brought on line with work-overs.
• Immediate cash flow additions as all infrastructure is in place.
• GC Infrastructure attractive to other players in the region for production handling.
• Pyramid has the opportunity to participate in a deep high impact prospect beneath the existing production
• Ownership of a 19% interest in a 30 miles oil pipeline which transports oil to a central station. Partners are Shell and Apache.

Block HI 160

• 50% WI in 18 wells with 6 wells producing 1.7 MMcfd gross.
• Produced to date about 535 BCF. Substantial upside through drilling defined 3 seismically defined structures.
• Acquired from a major who performed minimum work-overs (WO) during the past 5 years.
• One structure analyzed has 27 BCF reserves allocated by a third party engineering firm with a PW10 value exceeding $100 Million. (Pyramid’s share $50.0 Million).
• Control over 20,000 acres. Deep potential identified but needs further seismic work.

MU 804

• 12.5% WI (10.4 NRI) in 1 gas well.
• Current gross production 4.0 mmcfd. (Pyramid’s share 415 mcfd)
• Block has 5000 acres. No further review undertaken at present.
• Pyramid owns a 12.5% interest in a gas pipeline and is receiving transportation tariff income.

VR 331

• 12.5% WI (10.4 NRI) in 15 wells oil and a gas well.
• Current gross production 950 bopd and 11.0 mmcfd. (Pyramid’s share 100 bopd and 1,375 mcfd)
• Block has 12,500 acres.
• Additional drilling potential.

Management

• Mr. Ilyas M. Chaudhary – Chairman, CEO and President
• Mansoor A. Anjum – CFO and Director
• Graham B. Livesey, VP Business Development
• Paul Appel, VP Operations
• Ray LaGarde, Director
• Saad Shaarawi, Board Member
• William (Bill) Richards, Director
• Walton Vance, VP Finance

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