Pyramid Oil Co. (PDO) Brings Home Several Proposed and Completed Gas Deals in Texas

 @ibtimes
on March 10 2010 7:19 AM

Having been in the oil and gas business for so long, many companies have the luxury of planning for cycles of production. As this well drains down another is just about ready to come on line. Finding these types of companies, as commodity natural gas and oil move higher, will likely lead to profit.

Pyramid Oil Co., an oil and gas exploration and extraction company, works to develop and market oil and natural gas products primarily in California, Texas, Wyoming and New York. The company was founded in 1909 and sells its products to pipeline companies, refineries and crude oil purchasers.

As one might suspect, general revenues were down at the end of 2009 as oil and natural gas prices lowered. This trend, however has appeared to reverse with oil hovering around $80. According to the company, it can maintain reserves while finding $220,000 in operational savings. Overall this has left the company in fine position for future expansion. One particular drag on earnings was not planned for in 2008 as new water and air regulations entered enforcement. Unfortunately there is little way around these issues although the company has brought in experts to mitigate them.

What the company does have working for it is a solid product reserve, a solid structure of existing leases and a variety of oil and natural gas products, primarily in Texas, which are close to completion and production. A company does not stay in the oil and gas game for over 100 years and not have an idea of how to make the process work.

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