HOUSTON, June 10 /CNW/ - Pyramid Petroleum Inc. (TSXV: PYR) today
announced that it has received approval from the Minerals Management Service
to commence the recompletion of two wells in Green Canyon Block 184 in the
Gulf of Mexico. Upon completion of the A-10 and A-16D wells, Pyramid will seek
approval for the recompletion of six additional wells in Green Canyon Blocks
184, 52 and 53 ("Green Canyon Blocks"). Gross production from the 8 wells is
estimated to increase as much as 1,800 bopd and 2,500 mcfd with Pyramid's net
increase being 450 boepd. All recompleted wells will be placed in production
immediately through existing production facilities. The workover programs are
expected to be completed by October 2008. Pyramid's share of the capital cost
of $1.0 million will be funded from existing cash flow.
Pyramid is the operator for the Green Canyon Blocks. These platforms are
located in 570 to 1,760 feet of water in the Gulf of Mexico and currently
produce a gross of 2,300 bopd and 4,000 mcfd. The platform facilities on the
Green Canyon blocks were designed and constructed by Conoco in 1989 with a
capacity to produce 55,000 bopd and 125,000 mcfd. Produced oil is shipped
through a 30-mile 12" diameter underwater pipeline in which Pyramid has an
ownership interest of 19%. Gas is marketed through a third party gas pipeline.
Pyramid has varying working interests ranging from 16.5% to 25% in
15,000 acres within the Green Canyon Blocks and in the platform facilities.
In addition, Pyramid announced that the exploratory drilling program of
four wells announced on April 16, 2008 is now scheduled to commence in
The TSX Venture Exchange has neither approved nor disapproved of the
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:
For further information: Faisal Chaudhary, V.P. Marketing, Pyramid
Petroleum Inc., firstname.lastname@example.org, (281) 822-0801 x 110,
www.pyramidpetroleum.com; CHF Investor Relations: Cathy Hume, CEO,
email@example.com, (416) 868-1079 x 231; Michael Borovec, Account Manager,
firstname.lastname@example.org, (416) 868-1079 x 229