Pyramid Petroleum Embarks on Six Well Drilling Program in Gulf Of Mexico and Announces US $10m Financing

Pyramid Petroleum Inc. (TSX - VX: PYR), announced today that it has embarked on a six well drilling program in the Gulf of Mexico. Pyramid has a 50% interest in three of these wells, which it will be drilling from its own proven-undeveloped reserves in High Island block 160, and a 10% interest in an additional three wells with its partner Black Pool Energy. This initial six well drilling and development program will target a gross 36 BCF of natural gas reserves, and potential production of roughly 8.8mmcf/day net to Pyramid's production interest.

Pyramid has engaged Toronto, Canada based Becher McMahon Capital Markets to assist the company with raising up to USD $10m in senior debt to drill and complete these wells.

Becher McMahon has considerable debt and equity capital markets experience in funding the capital requirements of growing oil and gas producers, and recently completed the funding of a similar Gulf of Mexico operator.


Pyramid CEO Ilyas Chaudhary stated, "We are pleased to announce the engagement of Becher McMahon Capital Markets for the purposes of this capital raise. With a high quality exploration and facilities staff in place, Pyramid is confident that this first phase of our 2009 growth strategy will be a success and prove to increase shareholder value. We look forward to working with Becher McMahon and expect to complete the funding of the drilling program by the end of February. "

A detailed description of Pyramid's 2009 growth strategy can be found at www.pyramidpetroleum.com/summary.html


About Pyramid Petroleum Inc.
Pyramid Petroleum Inc., with its headquarters located in Houston, Texas, is an oil and gas exploration and production company having substantial upside through its strategically located operations in the Gulf of Mexico. Shares of the Company are traded on the TSX Venture Exchange under the symbol "PYR".

Disclaimers
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.

For further information, please contact:
Michael Borovec,
Director of Investor Relations
Pyramid Petroleum Inc.
This email address is being protected from spambots. You need JavaScript enabled to view it.
281.822.0801 x 123
www.pyramidpetroleum.com


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Source: Pyramid Petroleum Inc. (TSX-V PYR) www.pyramidpetroleum.com
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