Pyramid Petroleum Inc. (fka PYDPF)

[MWM]

Pyramid Petroleum Announces 2nd Quarter 2008 Results
CALGARY, ALBERTA--(Marketwire - Aug. 28, 2008) - A correction from source is being issued with respect to the Pyramid Petroleum release disseminated on August 28, 2008 at 16:08 ET. The header for the summary table should have read Q2 2007, instead of Q1 2007. The complete and correct release follows:

Pyramid Petroleum Inc. (TSX VENTURE:PYR) announced today operating results for the 2nd quarter of 2008. The Company's 2008 2nd quarter unaudited interim consolidated financial statements and associated management's discussion and analysis can be found online at www.sedar.com.

Pyramid Petroleum CEO Ilyas Chaudhary stated that, "I am pleased with the operating results, especially the fact that cash flow from operations during the first two quarters of 2008 of 23 cents per share has already exceeded total cash flow from the year 2007 of 22 cents per share. With all fixed debt, other than $1 million long term debt, being fully paid, Pyramid is in a position to accelerate its growth plans by completing capital programs and pursuing selective acquisition opportunities."

2nd QUARTER 2008 HIGHLIGHTS (stated in U.S. dollars)

- Revenues, net of royalties, for Q2 2008 were $7,911,854 compared to $3,216,621 for Q2 2007. The increase is primarily due to additional assets acquired in the Gulf of Mexico during the 2nd quarter of 2007 and higher commodity prices in 2008.

- Cash flow from operations for Q2 2008 was $4,286,158 (11 cents per share) compared to $1,170,513 (3 cents per share) for Q2 2007.

- Net loss for Q2 2008 was $892,913 (2 cents per share) compared to net income of $353,590 (2 cents per share) for Q2 2007. The net loss in the period is due to a recorded book loss - on the disposition of producing properties, which were sold in June 2008.

The following is the summary of financial results for the Company for the three month periods ended June 30, 2008 and 2007.



Q2 2008 Q2 2007
------- -------

Total sales volumes (boe 6:1)
- net of royalties 87,907 58,761
Daily sales volumes (boe 6:1)
- net of royalties 966 646

Statements of Net (Loss) Income and Retained Earnings
USD USD
Oil and gas sales ($),
net of royalties 7,911,854 3,216,621
Operating expenses 2,136,351 880,816
Net oil and gas revenue ($) 5,775,503 2,335,805
Loss on disposition of properties (3,138,990) -
Net (loss) income for the period ($) (892,913) 353,090
Net (loss) income per share
- basic and diluted ($) (0.02) 0.01
Statements of Cash Flows
Cash flow from operations ($) 4,286,158 1,170,513
Cash flow from operations per share ($) 0.11 0.03
Weighted average number of shares
- basic 37,473,541 36,617,458

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.