Pyramid Announces 2P Reserves Of US$52.6 Million For 2nd Quarter 2007 Acquisition



    CALGARY, Dec. 28 /CNW/ - Pyramid Petroleum, Inc. (TSXV: PYR) announced
today that it has received a NI 51-101 reserve report, as prepared by
Netherland Sewell Associates Inc., for the properties it acquired, subject to
final regulatory approvals, during the 2nd quarter 2007 in the Gulf of Mexico
("Properties"), as reported on April 3, 2007 and May 18, 2007. The effective
date of the report is October 31, 2007.
    Pyramid's proved plus probable ("2P") reserves for the Properties are
895 thousand barrels of oil and condensate ("Mbbl") and 7,414 million cubic
feet of gas ("MMcf"), or 2,132 thousand barrels of oil equivalent ("Mboe")
with a present value before income taxes discounted at 10 percent ("PV10") of
US$52.6 million. Proved reserves are 796 Mbbl and 5,527 MMcf, or 1,718 Mboe
with a PV10 of US$44 million. Probable reserves are 99 Mbbl and 1,887 MMcf, or
414 Mboe with a PV10 of US$8.6 million.
    The above reserves are in addition to the Pyramid's reserves for its
Montana and Alberta properties and its original Gulf of Mexico properties
acquired in 2006.
    The following table summarizes all of Pyramid's reserves, based on its
present engineering reports, without allowance for depletion or accretion.
Readers are cautioned to refer to the original reports found on Sedar for
underlying assumptions and limitations.

    
    -------------------------------------------------------------------------
                                      Reserves as of        Additions during
                                       Dec. 31, 2006                    2007
                                      ---------------------------------------
    Volumes (boe):
    Proved reserves                        1,115,779               1,717,772
    Probable reserves                         31,471                 413,587
    Proved & Probable (2P)                 1,147,250               2,131,359

    PV10 (US$)-constant prices:
    Proved reserves                   $   12,080,733          $   43,989,500
    Probable reserves                 $    1,131,708          $    8,611,400
    Proved & Probable (2P)            $   13,212,441          $   52,600,900
    -------------------------------------------------------------------------
    

    The addition in reserves during 2007 are only for the properties acquired
in 2007 and does not include reserves for properties that were included in
2006 reserve report. The total is not provided due to difference in the
effective dates of the reserve reports.

    Disclaimers

    The TSX Venture Exchange has neither approved nor disapproved of the
contents hereof.
    Use of the term barrels of oil equivalent ("boe") or thousands of cubic
feet of gas equivalent ("Mcfe") may be misleading, particularly if used in
isolation. A boe conversion ratio of 6 Mcf: 1bbl 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:

For further information: Mansoor Anjum, Pyramid Petroleum, Inc.,
mansoor@pyramidpetroleum.com, (403) 617-3733, www.pyramidpetroleum.com

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PYRAMID PETROLEUM, INC.

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