Pyramid Petroleum closes Gulf of Mexico acquisition and extends the closing date of its offering of convertible debentures

    CALGARY, April 3 /CNW/ - Pyramid Petroleum Inc. (TSXV: PYR) ("Pyramid" or
the "Company") today announced the closing of an acquisition of varying
working interests, ranging from 5% to 20%, in 12 producing and 40 non
producing oil and gas wells in the Gulf of Mexico. The acquisition provides
current net production to Pyramid's interest of 340 barrels of oil equivalent
per day (boe/d), more than doubling the Company's current production of
305 boe/d. The signing and exercise of an option for this acquisition was
previously announced on January 31, 2007 and February 28, 2007 respectively.
Pyramid also announced the extension of the final closing date for its
offering of up to $2,025,000 of 12 percent subordinated convertible debentures
to on or about April 16, 2007.
    Mr. Mansoor Anjum, President of Pyramid, commented, "This acquisition
makes the Gulf of Mexico a core area for the Company. We intend to develop
further strategies to increase our reserves and cash flow in the Gulf. The
acquisition adds to the company's net asset value (NAV) and we expect further
development of exploration opportunities to provide significant additional
value to the Company."
    The contracted purchase price for the acquisition is US$7 million with an
effective date of September 1, 2006. The purchase price, along with
US$3.1 million, for a plugging and abandonment bond and closing costs, has
been funded with a combination of debt, production credits, deferred payments
to the seller and cash.
    The 340 boe/d production of the acquisition consists of 190 barrels per
day (bbls/d) of oil and 900 thousand cubic feet per day (Mcf/d) of gas. The
Company has substantial potential to increase production and reserves of the
acquisition by completing the behind pipe non producing horizons.
    With regard to the extension of Pyramid's final closing date for its
offering of up to $2,025,000 of 12 percent subordinated convertible debentures
to on or about April 16, 2007, the first closing of the offering, totaling
$644,000, was announced on February 28, 2007. Research Capital Corporation, of
Calgary, Alberta, is acting as agent for this offering on a best efforts
basis. The proceeds from the offering will be used for general corporate

    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: 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.

    The TSX Venture Exchange has neither approved nor disapproved of the
    contents hereof.

    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.

    %SEDAR: 00022259E

For further information:

For further information: Mansoor A. Anjum, President and CFO, Pyramid
Petroleum, Inc.,, (403) 234-9000,; Ken Wetherell, Investor Relations, Bryan Mills
Iradesso,, (403) 503-0144 x224

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