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7-20-2006 PYR - PYR Energy Corporation

CURRENT PRICE: $1.07

TYPE OF PLAY: EARNINGS GROWTH/TECHNICAL ANALYSIS/SITUATIONAL

PYR is an independent oil and gas exploration and production company. They are engaged in the exploration, development and acquisition of crude oil and natural gas reserves the Rocky Mountain, Texas and Oklahoma Panhandle, East Texas and Gulf Coast regions. In the most recent quarter (reported this past Monday), Oil and gas revenues increased a record 126% to approximately $3.7 million for the three months ended May 31, 2006. Additionally, PYR turned a net profit of .04 per share. In comments about the company's outlook the CEO said:

"Overall, we are extremely pleased by our record results and the continued quarter over quarter and year over year growth that the Company has experienced in production and revenue. We expect continued increases as new wells are drilled and brought on line. The Scharff drilling in Oklahoma continues to add significant production and cash flow to the Company, and we are excited about the opportunity that our Smith County -- Rodessa project offers for future growth. At the Mallard project in Wyoming, we are excited about the current 3D seismic survey underway, and the possibilities to drill additional wells in the giant Whitney Canyon Carter Creek Field. "

This market has seen small-cap growing oil and gas companies like GEOI, BDCO and OMNI shoot to record levels in a short time after the revenue and income growth story is realized. We believe that should PYR continue on its current path, the beginning stages of a similar growth story will evolve and lead to a significant revaluation. Note that their record improvement in earnings was made despite the downturn in natural gas prices over the past year. We feel that the potential upswing in natural gas prices and continual global oil worries will be additive to future earnings growth. With no regard for earnings growth, the market has mercilessly taken this stock down almost 80% from yearly highs. We think that the disconnect between stock performance and proven earnings growth is a key opportunity to catch a small, relatively unknown company while at its lows.

LINKS FOR FURTHER READING:
PYR Homepage
Oil and Natural Gas Prices
SEC filings for PYR
General PYR statistics