CALGARY, ALBERTA--(MARKET WIRE)--Oct 7, 2008 -- Pyramid Petroleum Inc. ("Pyramid") (CDNX:PYR.V - News) today announced that it has filed with the TSX Venture Exchange a Notice of Intention to purchase its common shares from time to time in accordance with the normal course issuer bid procedures under Canadian securities laws.

Pursuant to the issuer bid, Pyramid may purchase for cancellation up to 1,884,602 of its common shares, representing 5% of the issued and outstanding common shares of the Corporation, for a 12-month period. The price which Pyramid will pay for any shares under the normal course issuer bid will be the market price at the time of purchase as traded on the TSX Venture Exchange. The brokerage firm conducting the normal course issuer bid on behalf of Pyramid is Research Capital Corporation. The normal course issuer bid will commence on October 10, 2008, and terminate on October 10, 2009.

The Corporation believes that the purchase of its shares at recent market prices is a worthwhile investment since recent market prices do not properly reflect the underlying value of its assets and business. To the extent that the Corporation purchases for cancellation such shares in accordance with the Normal Course Issuer Bid, the holdings of remaining shareholders would represent an increased proportion of the shares outstanding and, all other things remaining equal, are expected to result in an increased net asset value per share.

About Pyramid Petroleum

Pyramid Petroleum Inc. is an oil and gas exploration and production company with substantial upside through its strategically located operations offshore in the Gulf of Mexico. Shares of the Company are listed for trading on the TSX Venture Exchange under the symbol "PYR."

Disclaimers

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.

     Contacts:
     Pyramid Petroleum Inc.
     Laura Boyko
     (281) 822-0801 x101
     Email: lboyko@pyramidgom.com
     Website: http://www.pyramidpetroleum.com
      
     CHF Investor Relations
     Jacqueline Wagenaar
     Account Manager
     (416) 868-1079 x289
     Email: jacqueline@chfir.com
      
     CHF Investor Relations
     Sasha Abrams
     Associate Account Manager
     (416) 868-1079 x246
     Email: sasha@chfir.com