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                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, DC 20549


                                   FORM 8-K

    Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


                Date of Report:                  January 25, 2007
      Date of earliest event reported:           January 22, 2007


                        Commission File Number 0-5525


                              PYRAMID OIL COMPANY
              (Exact name of registrant as specified in its charter)


                CALIFORNIA                                94-0787340
     (State or other jurisdiction of                   (IRS Employer
       incorporation or organization)                 Identification No.)


                 2008 - 21ST. STREET
               BAKERSFIELD, CALIFORNIA                    93301
        (Address of principal executive offices)        (Zip Code)


                                  (661) 325-1000
              (Registrant's telephone number, including area code)


Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of
the following provisions:

    [ ]  Written communications pursuant to Rule 425 under the Securities
           Act (17 CFR 230.425)

    [ ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act
           (17 CFR 240.14a-12)

    [ ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the
           Exchange Act (17 CFR 240.14d-2(b))

    [ ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the
           Exchange Act (17 CFR 240.14e-4(c))



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Section 8 - Other Events


Item 8.01  Other Events

PYRAMID OIL COMPANY BEGINS DRILLING OPERATIONS

     BAKERSFIELD, CALIFORNIA, January 22, 2007, PR Newswire, PYRAMID OIL
COMPANY, symbol PDO, announces that it began drilling operations on Friday,
January 19, 2007, on a new in its Carneros Creek Field, Kern County,
California.  The well is scheduled to be drilled to a depth of approximately
3,300 feet.  Results of the well will be announced after completion
and testing operations.

Information Regarding Forward Looking Statements

     Certain statements and information included in this press release
constitute forward-looking statements within the meaning of the Federal
Private Securities Litigation Reform Act of 1995, including statements
regarding the completion and testing of wells.  Forward -looking statements
involve known and unknown risks and uncertainties, which may cause the
Company's actual results in future periods to differ materially from
forecasted results.  Factors that could cause or contribute to such
differences include, but are not limited to the value of crude oil or the
performance of oil/gas wells.




























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                                SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.


                                           PYRAMID OIL COMPANY
                                              (Registrant)

    Dated: January 25, 2007

                                             JOHN H. ALEXANDER
                                        By: -------------------
                                             John H. Alexander
                                                 President