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OIl prices have started climbing up to $77.06 per barrel and coupled with current BP oil spill, oil prices could soar by the end of 2010 due to a moratorium on offshore drilling.

National Inflation Association (NIA) points out that this is the best time to place your bet on land based oil drillers. NIA has recommended Pyramid OIl Company for investing in the second half of 2010 (AMEX: PDO).PDO is currently $4.39 per share and has 4.68 million shares outstanding giving it a market cap valuation of only $20.55 million.

PDO was founded in 1909 and the company engages in the exploration, development, and production of crude oil and natural gas resources. PDO holds oil and gas property interests primarily in California, as well as in New York, Wyoming, and Texas.

PDO owns and operates 27 oil and gas leases located within Kern and Santa Barbara Counties in the State of California. All of PDO's oil production is classified as primary recovery production; although certain properties may be conducive to secondary recovery operations in the future, depending on the prevailing price of oil.

Crude oil and natural gas produced from PDO’s properties are sold to various refineries and pipeline companies. The majority of all oil and gas properties that PDO owns and operates is for its own account. PDO also participates in joint ventures with other companies in the development of oil and gas properties.

PDO has over 20+ year relationships with its two largest crude customers: Conoco Phillips & Kern Oil and Refining.

Already for the first quarter of 2010 ending March 31st, PDO’s revenues saw an increase of 69% to $1 million from $594,000 in the first quarter of last year. PDO was profitable with net income of $181,000.

PDO has a strong balance sheet with over $4.43 million in cash and virtually no debt!

PDO’s technicals look extremely bullish at these levels. Only about two months ago PDO made a run from $4.55 to as high as $7.70! Now that PDO has fallen drastically and found its support level we believe PDO could be setting up for another big run in both the short and long-term. Remember, PDO has been around for over 100 years! In 2008, PDO made a run to as high as $36.80!

NIA believes that land based oil drillers could prosper during the upcoming hyperinflationary crisis. In our opinion, oil is poised to move back towards $100 per barrel and profitable, producing oil companies with strong balances sheets like PDO will reap the benefits.

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