Pyramid Oil Company (Pyramid) is engaged in the business of exploration, development and production of crude oil and natural gas. As of December 31, 2008, Pyramid had interests in 27 oil and gas leases in Kern and Santa Barbara Counties in the State of California. The Company also owns oil and gas interests in Wyoming and New York that it does not operate. Pyramid acquires interests in land and producing properties through acquisition and lease, on which it drills and/or operates crude oil or natural gas wells in efforts to discover and/or to produce oil and gas. Crude oil and natural gas produced from these properties are sold to various refineries and pipeline companies. The majority of all oil and gas properties that Pyramid owns and operates is for its own account. Pyramid also participates in specific joint ventures with other companies in the development of oil and gas properties.