BAKERSFIELD, CA--(Marketwire - Apr 1, 2013) - Pyramid Oil Company (
Fourth quarter revenue was $1.1 million versus $1.4 million in the same quarter in 2011. The decline was attributable to lower average crude sales prices and a decrease in crude production volumes. The Company realized fourth quarter crude prices per average barrel of oil equivalent (BOE) of $101.62 versus $108.15 per average BOE in the 2011 fourth quarter. The Company's net revenue share of crude oil sales decreased by approximately 2,250 barrels compared with the same quarter in 2011.
During the fourth quarter, the Company recorded a $237,000 non-cash valuation allowance associated with the Santa Fe #20 well, which was drilled during the first quarter but currently is not producing. The non-recurring charge resulted in a fourth quarter operating loss of $135,000 versus operating income of $435,000 in the comparable quarter last year. Fourth quarter net loss was $91,000, or $0.02 per share, versus net income of $344,000, or $0.07 per share, in comparable prior-year quarter.
For the full fiscal year, revenue was $5.0 million versus $5.7 million in 2011. The full-year realized price per average BOE was $105.38 versus $104.78 per average BOE in 2011, while the Company's net revenue share of crude oil sales decreased by 6,888 barrels versus 2011.
Operating income was $975,000 versus $1.2 million in the prior year, while net income was $778,000, or $0.17 per share, compared with net income of $1.1 million, or $0.23 per share, in 2011. The Company generated operating cash flow of $2.1 million versus $2.5 million during 2011.
Pyramid closed 2012 with cash, cash equivalents and short-term investments of $6.0 million, up from $4.9 million at the end of 2011. Working capital improved to $6.2 million from $5.4 million, while total current assets increased to $7.0 million from $6.1 million. The Company also held $1.1 million in CDs at December 31, 2012. The combined year-end value of the Company's cash, cash equivalents, short-term investments and CDs was $7.1 million, or $1.51 per share. Pyramid's balance sheet remained free of long-term debt at the end of the year.
"The enhanced the strength of our balance sheet will allow us to internally fund a more active drilling program during the coming year," said John Alexander, president and CEO. "One of our primary goals is to re-drill three existing wells on our Delaney Tunnell property in Santa Maria. Two of the wells will be producers, and will be re-drilled into the Monterey Formation at a depth of approximately 6,700 feet. The third well will be re-drilled as a disposal well for production water."
Mr. Alexander said the wells are currently in the planning and permitting phase, and depending on rig availability, the Company intends to commence re-drilling operations during this year's third or fourth quarter. The original wells were drilled to a depth of approximately 4,700 feet and produced from the Thomas Sands formation.
"If successful, these wells could represent meaningful additions to our daily production volumes," Mr. Alexander added. "They also could represent an important step toward our continuous objective of maximizing shareholder value."
About Pyramid Oil Company
Pyramid Oil Company has been in the oil and gas business continuously since incorporating in 1909. Pyramid acquires interests in land and producing properties through acquisition and lease, and then drills and/or operates crude or natural gas wells in an effort to discover or produce oil and/or natural gas. More information about the Company can be found at: http://www.pyramidoil.com.
Safe Harbor Statemet
Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995, including statements regarding the completion and testing of wells. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. Factors that could cause or contribute to such differences include, but are not limited to the value of crude oil or the performance of wells.
|PYRAMID OIL COMPANY|
|STATEMENTS OF OPERATIONS|
|Three months ended December 31,||Twelve months ended December 31,|
|Oil and gas sales||$||1,087,535||$||1,400,768||$||4,995,327||$||5,689,949|
|COSTS AND EXPENSES:|
|General and administrative||209,233||213,404||842,037||879,779|
|Stock based compensation||0||0||0||43,743|
|Taxes, other than income|
|and payroll taxes||30,878||35,805||160,144||137,163|
|Provision for depletion,|
|depreciation and amortization||130,163||139,600||649,559||735,231|
|Other costs and expenses||31,268||28,366||149,717||147,330|
|OPERATING INCOME (LOSS)||-134,982||434,574||975,064||1,160,557|
|OTHER INCOME (EXPENSE):|
|INCOME (LOSS) BEFORE INCOME TAX PROVISION (BENEFIT)||-123,897||445,172||1,017,366||1,207,900|
|Income tax provision (benefit)|
|BASIC INCOME PER COMMON SHARE||$||-0.02||$||0.07||$||0.17||$||0.23|
|DILUTED INCOME PER COMMON SHARE||$||-0.02||$||0.07||$||0.17||$||0.23|
|Weighted average number of common shares outstanding||4,685,859||4,683,853||4,685,859||4,683,853|
|Diluted average number of common shares outstanding||4,685,859||4,687,580||4,685,859||4,687,580|
|PYRAMID OIL COMPANY|
|December 31,||December 31,|
|Cash and cash equivalents||$||3,834,097||$||2,762,676|
|Trade accounts receivable||375,090||555,495|
|Income taxes receivable||73,069||21,169|
|Crude oil inventory||82,180||118,156|
|Prepaid expenses and other assets||257,370||255,846|
|Deferred income taxes||264,400||262,500|
|TOTAL CURRENT ASSETS||7,021,915||6,104,222|
|PROPERTY AND EQUIPMENT, at cost|
|Oil and gas properties and equipment (successful efforts method)||20,007,453||19,124,558|
|Capitalized asset retirement costs||425,978||401,242|
|Drilling and operating equipment||1,966,750||1,956,371|
|Land, buildings and improvements||1,098,918||1,073,918|
|Automotive, office and other property and equipment||1,202,544||1,192,118|
|Less: accumulated depletion, depreciation, amortization and valuation allowances||-20,953,324||-20,091,655|
|TOTAL PROPERTY AND EQUIPMENT||3,748,319||3,656,552|
|INVESTMENTS AND OTHER ASSETS|
|Deferred income taxes||621,800||781,600|
|TOTAL INVESTMENTS OTHER ASSETS||1,990,706||2,120,964|
|PYRAMID OIL COMPANY|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|December 31,||December 31,|
|Accrued professional fees||120,000||142,990|
|Accrued taxes, other than income taxes||70,407||77,471|
|Accrued payroll and related costs||58,954||51,252|
|Accrued royalties payable||204,509||224,810|
|Current maturities of long-term debt||0||32,285|
|TOTAL CURRENT LIABILITIES||774,745||699,730|
|LONG TERM DEBT, net of current maturites||0||22,330|
|LIABILITY FOR ASSET RETIREMENT OBLIGATIONS||1,327,861||1,278,889|
|COMMITMENTS AND CONTINGENCIES|
|Preferred stock-no par value; 10,000,000 authorized shares; no shares issued or outstanding||0||0|
|Common stock-no par value; 50,000,000 authorized shares; 4,683,853 shares issued and outstanding||1,682,971||1,682,971|
|TOTAL STOCKHOLDERS' EQUITY||10,658,334||9,880,789|
|TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY||$||12,760,940||$||11,881,738|