CALGARY, ALBERTA -- 08/11/08 --
Pyramid Petroleum Inc. (TSX VENTURE: PYR) announces that the debt of $9.1 million taken to acquire Gulf of Mexico properties in April and May 2007 has been paid in full. Accomplishing this in merely 15 months, the only debt remaining is a long term promissory note of $1.0 million to be paid in 2011.
Pyramid Petroleum CEO Ilyas Chaudhary stated that, "Pyramid, in its tradition for conservative forecasting, had projected to shareholders to retire this debt by year end 2008. Due to a combination of factors such as lower decline rates and increased commodity prices, the said debt was paid down five months earlier. While Pyramid plans to raise funds from convertible debentures, as announced earlier, the free cash flow from operations will positively facilitate the ongoing well rework and drilling programs."
Pyramid Petroleum Inc., 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 Offshore ("GOM"). Pyramid Operates 16 platforms and 51 wells with three facilities in the Green Canyon block (52,184, and CPP) having the potential capacity of up to 55,000 BOPD and 125 MMcfd (current utility of 2250 BOPD and 6.4 MMcfd). Pyramid's net production is about 1200 boepd. Shares of the Company are listed for trading on the TSX Venture Exchange under the symbol 'PYR'.
Disclaimers
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.
The TSX Venture Exchange has neither approved nor disapproved of the contents hereof.
Contacts:
Pyramid Petroleum Inc.
Mansoor Anjum
CFO
(403) 617-3733
Email: manjum@pyramidgom.com
Website: www.pyramidpetroleum.com
CHF Investor Relations
Cathy Hume
CEO
(416) 868-1079 x231
Email: cathy@chfir.com
CHF Investor Relations
Michael Borovec
Account Manager
(416) 868-1079 x229
Email: Michael@chfir.com
