| CALIFORNIA                                                    |   | 94-0787340                          |
|---------------------------------------------------------------|--------|-------------------------------------|
| (State of other jurisdiction ofincorporation or organization) |   | (I.R.S. EmployerIdentification No.) |

| 2008 – 21st. Street. P.O. Box 832, Bakersfield, California |   | 93302      |
|------------------------------------------------------------------|--------|------------|
| (Address of principal executive offices)                         |   | (Zip Code) |

| Registrant's telephone number: | (661) 325-1000 |
|--------------------------------|----------------|

| Large accelerated filer  ̈ | Accelerated Filer  ̈    |
|--------------------------------|-----------------------------|
| Non-accelerated filer  ̈   | Smaller reporting company x |

| (Class)                        | (Outstanding at May 13, 2011) |
|--------------------------------|-------------------------------|
| Common Stock Without Par Value |  4,683,853               |

----

|                      |                                                                                          | Page     |
|---------------------------|-----------------------------------------------------------------------------------------------|----------|
|                      |                                                                                          |     |
| PART I                    |
|                      |                                                                                          |     |
| Item 1.                   | Financial Statements                                                                          |   3 |
|                      |                                                                                          |     |
|                      | Balance Sheets - March 31, 2011 (Unaudited) and December 31, 2010                             | 3        |
|                      |                                                                                          |     |
|                      | Income Statements - Three months ended March 31, 2011 and 2010 (Unaudited)                    | 5        |
|                      |                                                                                          |     |
|                      | Condensed - Statements of Cash Flows - Three months ended March 31, 2011 and 2010 (Unaudited) | 6        |
|                      |                                                                                          |     |
|                      | Notes to Financial Statements (Unaudited)                                                     | 8        |
|                      |                                                                                          |     |
| Item 2.                   | Management's Discussion and Analysis of Financial Condition and Results of Operations         | 14       |
|                      |                                                                                          |     |
| Item 3.                   | Quantitative and Qualitative Disclosures About Market Risk                                    | 16       |
|                      |                                                                                          |     |
| Item 4.                   | Controls and Procedures                                                                       | 16       |
|                      |                                                                                          |     |
| PART II                   |
|                      |                                                                                          |     |
| Item 1.                   | Legal Proceedings                                                                             | 17       |
|                      |                                                                                          |     |
| Item 1A.   | Risk Factors                                                                                  | 17       |
|                      |                                                                                          |     |
| Item 2.                   | Unregistered Sales of Equity Securities and Use of Proceeds                                   | 17       |
|                      |                                                                                          |     |
| Item 3.                   | Defaults Upon Senior Securities                                                               | 17       |
|                      |                                                                                          |     |
| Item 4.                   | Removed and Reserved                                                                          | 17       |
|                      |                                                                                          |     |
| Item 5.                   | Other Information                                                                             | 17       |
|                      |                                                                                          |     |
| Item 6.                   | Exhibits                                                                                      | 17       |

----

|                                                                                        |   | March 31 |        |   | December 31 |   |
|---------------------------------------------------------------------------------------------|--------|---------------|-------------|--------|------------------|--------|
|                                                                                        |   | 2011          |        |   | 2010             |   |
|                                                                                        |   | (Unaudited)   |        |   | (Audited)        |   |
|                                                                                        |   |          |        |   |             |   |
| CURRENT ASSETS:                                                                             |   |          |        |   |             |   |
| Cash and cash equivalents                                                                   |   | $             | 1,841,418   |   |             | $      | 1,535,532 |   |
| Short-term investments                                                                      |   |          | 3,069,270   |   |             |   | 3,058,528 |   |
| Trade accounts receivable (net of reserve for doubtful accounts of $4,000 in 2011 and 2010) |   |          | 629,833     |   |             |   | 508,457 |   |
| Joint interest billing receivable                                                           |   |          | 192,433     |   |             |   | — |   |
| Crude oil inventory                                                                         |   |          | 95,736      |   |             |   | 86,361 |   |
| Prepaid expenses and other assets                                                           |   |          | 195,098     |   |             |   | 230,876 |   |
| Deferred Income taxes                                                                       |   |          | 245,100     |   |             |   | 245,100 |   |
|                                                                                        |   |          |        |   |             |   |   |   |
| TOTAL CURRENT ASSETS                                                                        |   |          | 6,268,888   |   |             |   | 5,664,854 |   |
|                                                                                        |   |          |        |   |             |   |   |   |
| PROPERTY AND EQUIPMENT, at cost:                                                            |   |          |        |   |             |   |   |   |
|                                                                                        |   |          |        |   |             |   |   |   |
| Oil and gas properties and equipment (successful efforts method)                            |   |          | 19,219,961  |   |             |   | 18,101,529 |   |
| Capitalized asset retirement costs                                                          |   |          | 389,463     |   |             |   | 389,463 |   |
| Drilling and operating equipment                                                            |   |          | 1,946,805   |   |             |   | 1,946,805 |   |
| Land, buildings and improvements                                                            |   |          | 1,073,918   |   |             |   | 1,066,571 |   |
| Automotive, office and other property and equipment                                         |   |          | 1,195,396   |   |             |   | 1,182,613 |   |
|                                                                                        |   |          | 23,825,543  |   |             |   | 22,686,981 |   |
| Less - accumulated depletion, depreciation, amortization and valuation allowances           |   |          | (18,886,570 | )      |             |   | (18,687,908 | ) |
| TOTAL PROPERTY AND EQUIPMENT                                                                |   |          | 4,938,973   |   |             |   | 3,999,073 |   |
|                                                                                        |   |          |        |   |             |   |   |   |
| OTHER ASSETS                                                                                |   |          |        |   |             |   |   |   |
| Deferred income taxes                                                                       |   |          | 685,800     |   |             |   | 708,500 |   |
| Deposits                                                                                    |   |          | 250,000     |   |             |   | 250,000 |   |
| Other assets                                                                                |   |          | 17,380      |   |             |   | 7,380 |   |
| TOTAL OTHER ASSETS                                                                          |   |          | 953,180     |   |             |   | 965,880 |   |
|                                                                                        |   |          |        |   |             |   |   |   |
| TOTAL ASSETS                                                                                |   | $             | 12,161,041  |   |             | $      | 10,629,807 |   |

----

|                                                                                                                  |   | March 31 |       |   | December 31 |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|------------------|--------|
|                                                                                                                  |   | 2011          |       |   | 2010             |   |
|                                                                                                                  |   | (Unaudited)   |       |   | (Audited)        |   |
| CURRENT LIABILITIES:                                                                                                  |   |          |       |   |             |   |
| Accounts payable                                                                                                      |   | $             | 1,200,689  |   |             | $      | 73,374 |   |
| Accrued professional fees                                                                                             |   |          | 98,235     |   |             |   | 122,506 |   |
| Accrued taxes, other than income taxes                                                                                |   |          | 61,701     |   |             |   | 63,361 |   |
| Accrued payroll and related costs                                                                                     |   |          | 78,562     |   |             |   | 60,365 |   |
| Accrued royalties payable                                                                                             |   |          | 211,390    |   |             |   | 193,052 |   |
| Accrued insurance                                                                                                     |   |          | 46,840     |   |             |   | 86,888 |   |
| Accrued income taxes                                                                                                  |   |          | 59,000     |   |             |   | 12,800 |   |
| Current maturities of long-term debt                                                                                  |   |          | 31,660     |   |             |   | 13,473 |   |
|                                                                                                                  |   |          |       |   |             |   |   |   |
| TOTAL CURRENT LIABILITIES                                                                                             |   |          | 1,788,077  |   |             |   | 625,819 |   |
|                                                                                                                  |   |          |       |   |             |   |   |   |
| Long-term debt, net of current maturities                                                                             |   |          | 59,944     |   |             |   | 26,946 |   |
|                                                                                                                  |   |          |       |   |             |   |   |   |
| LIABILITY FOR ASSET RETIREMENT OBLIGATIONS                                                                            |   |          | 1,251,528  |   |             |   | 1,235,193 |   |
|                                                                                                                  |   |          |       |   |             |   |   |   |
| TOTAL LIABILITES                                                                                                      |   |          | 3,099,549  |   |             |   | 1,887,958 |   |
|                                                                                                                  |   |          |       |   |             |   |   |   |
| COMMITMENTS AND CONTINGENCIES (Note 4)                                                                                |   |          |       |   |             |   |   |   |
|                                                                                                                  |   |          |       |   |             |   |   |   |
| SHAREHOLDERS' EQUITY:                                                                                                 |   |          |       |   |             |   |   |   |
| Preferred stock, no par value                                                                                         |   |          |       |   |             |   |   |   |
| Authorized - 10,000,000 shares Issued and outstanding - none                                                          |   |          | —    |   |             |   | — |   |
| Common stock, no par value (Note 6, 7 and 9) Authorized - 50,000,000 shares Issued and outstanding - 4,683,853 shares |   |          | 1,639,228  |   |             |   | 1,639,228 |   |
| Retained earnings                                                                                                     |   |          | 7,422,264  |   |             |   | 7,102,621 |   |
| TOTAL SHAREHOLDERS’ EQUITY                                                                                      |   |          | 9,061,492  |   |             |   | 8,741,849 |   |
|                                                                                                                  |   |          |       |   |             |   |   |   |
| TOTAL LIABILITES AND SHAREHOLDERS’ EQUITY                                                                       |   | $             | 12,161,041 |   |             | $      | 10,629,807 |   |

----

|                                                    |   | Three months ended, March 31, |      |
|---------------------------------------------------------|--------|---------------------------------------------------|-----------|
|                                                    |   | 2011                                              |      |   | 2010 |   |
| REVENUES:                                               |   |                                              |      |   |   |   |
| Oil and gas sales                                       |   | $                                                 | 1,326,298 |   |   | $ | 1,001,739 |   |
| Gain on sales of fixed assets                           |   |                                              | 1,012     |   |   |   | — |   |
|                                                    |   |                                              | 1,327,310 |   |   |   | 1,001,739 |   |
| COSTS AND EXPENSES:                                     |   |                                              |      |   |   |   |   |   |
| Operating expenses                                      |   |                                              | 413,656   |   |   |   | 339,920 |   |
| General and administrative                              |   |                                              | 224,720   |   |   |   | 207,367 |   |
| Taxes, other than income and payroll taxes              |   |                                              | 36,855    |   |   |   | 27,820 |   |
| Provision for depletion, depreciation, and amortization |   |                                              | 185,528   |   |   |   | 149,387 |   |
| Valuation allowances                                    |   |                                              | 48,533    |   |   |   | 25,141 |   |
| Accretion expense                                       |   |                                              | 16,335    |   |   |   | 6,213 |   |
| Other costs and expenses                                |   |                                              | 25,487    |   |   |   | 17,240 |   |
|                                                    |   |                                              | 951,114   |   |   |   | 773,088 |   |
| OPERATING INCOME                                        |   |                                              | 376,196   |   |   |   | 228,651 |   |
|                                                    |   |                                              |      |   |   |   |   |   |
| OTHER INCOME (EXPENSE):                                 |   |                                              |      |   |   |   |   |   |
| Interest income                                         |   |                                              | 13,352    |   |   |   | 7,953 |   |
| Other income                                            |   |                                              | 500       |   |   |   | 2,797 |   |
| Interest expense                                        |   |                                              | (1,506    | ) |   |   | (181 | ) |
|                                                    |   |                                              | 12,346    |   |   |   | 10,569 |   |
| INCOME BEFORE                                           |   |                                              |      |   |   |   |   |   |
| INCOME TAX PROVISION                                    |   |                                              | 388,542   |   |   |   | 239,220 |   |
| Income tax provision                                    |   |                                              |      |   |   |   |   |   |
| Current                                                 |   |                                              | 46,200    |   |   |   | 20,000 |   |
| Deferred                                                |   |                                              | 22,700    |   |   |   | 38,550 |   |
|                                                    |   |                                              | 68,900    |   |   |   | 58,550 |   |
|                                                    |   |                                              |      |   |   |   |   |   |
| NET INCOME                                              |   | $                                                 | 319,642   |   |   | $ | 180,670 |   |
|                                                    |   |                                              |      |   |   |   |   |   |
| BASIC INCOME PER COMMON SHARE                           |   | $                                                 | 0.07      |   |   | $ | 0.04 |   |
|                                                    |   |                                              |      |   |   |   |   |   |
| DILUTED INCOME PER COMMON SHARE                         |   | $                                                 | 0.07      |   |   | $ | 0.04 |   |
|                                                    |   |                                              |      |   |   |   |   |   |
| Weighted average number of common shares outstanding    |   |                                              | 4,679,770 |   |   |   | 4,677,728 |   |
|                                                    |   |                                              |      |   |   |   |   |   |
| Diluted average number of common shares outstanding     |   |                                              | 4,687,030 |   |   |   | 4,686,018 |   |

----

|                                                                              |   | Three months ended, March 31, |      |
|-----------------------------------------------------------------------------------|--------|---------------------------------------------------|-----------|
|                                                                              |   | 2011                                              |      |   | 2010 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                             |   |                                              |      |   |   |   |
| Net income                                                                        |   | $                                                 | 319,642   |   |   | $ | 180,670 |   |
|                                                                              |   |                                              |      |   |   |   |   |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |                                              |      |   |   |   |   |   |
|                                                                              |   |                                              |      |   |   |   |   |   |
| Provision for depletion, depreciation, and amortization                           |   |                                              | 185,528   |   |   |   | 149,387 |   |
| Valuation allowances                                                              |   |                                              | 48,533    |   |   |   | 25,141 |   |
| Gain on sale of fixed assets                                                      |   |                                              | (1,012    | ) |   |   | — |   |
| Accretion expense                                                                 |   |                                              | 16,335    |   |   |   | 6,213 |   |
| Loss on disposal of fixed assets                                                  |   |                                              | —   |   |   |   | 803 |   |
| Deferred income taxes                                                             |   |                                              | 22,700    |   |   |   | 38,550 |   |
|                                                                              |   |                                              |      |   |   |   |   |   |
| Changes in operating assets and liabilities:                                      |   |                                              |      |   |   |   |   |   |
| (Increase) in trade accounts and interest receivable                              |   |                                              | (313,809  | ) |   |   | (190,426 | ) |
| (Increase) in crude oil inventories                                               |   |                                              | (9,375    | ) |   |   | (26,417 | ) |
| Decrease in prepaid expenses                                                      |   |                                              | 36,078    |   |   |   | 27,658 |   |
| (Increase) in other assets                                                        |   |                                              | (10,000   | ) |   |   | — |   |
| Increase (decrease) in accounts payable and accrued liabilities                   |   |                                              | 1,144,071 |   |   |   | (35,880 | ) |
|                                                                              |   |                                              |      |   |   |   |   |   |
| Net cash provided by operating activities                                         |   |                                              | 1,438,691 |   |   |   | 175,699 |   |

----

|                                                 |   | Three months ended, March 31, |       |
|------------------------------------------------------|--------|---------------------------------------------------|------------|
|                                                 |   | 2011                                              |       |   | 2010 |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                |   |                                              |       |   |   |   |
|                                                 |   |                                              |       |   |   |   |
| Capital expenditures                                 |   | $                                                 | (1,193,949 | ) |   | $ | (520,925 | ) |
| Increase in short-term investments                   |   |                                              | (10,742    | ) |   |   | (4,426 | ) |
| Proceeds from sale of property and equipment         |   |                                              | 21,000     |   |   |   | — |   |
|                                                 |   |                                              |       |   |   |   |   |   |
| Net cash (used in) investing activities              |   |                                              | (1,183,691 | ) |   |   | (525,351 | ) |
|                                                 |   |                                              |       |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                |   |                                              |       |   |   |   |   |   |
| Loans to employees                                   |   |                                              | (800       | ) |   |   | (600 | ) |
| Proceeds from issuance of long-term debt             |   |                                              | 55,979     |   |   |   | — |   |
| Principal payments from loans to employees           |   |                                              | 500        |   |   |   | 1,100 |   |
| Principal payments on long-term debt                 |   |                                              | (4,793     | ) |   |   | (6,122 | ) |
|                                                 |   |                                              |       |   |   |   |   |   |
| Net cash provided by (used in) financing activities  |   |                                              | 50,886     |   |   |   | (5,622 | ) |
|                                                 |   |                                              |       |   |   |   |   |   |
|                                                 |   |                                              |       |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents |   |                                              | 305,886    |   |   |   | (355,274 | ) |
|                                                 |   |                                              |       |   |   |   |   |   |
| Cash and cash equivalents at beginning of year       |   |                                              | 1,535,532  |   |   |   | 1,438,825 |   |
|                                                 |   |                                              |       |   |   |   |   |   |
| Cash and cash equivalents at end of period           |   | $                                                 | 1,841,418  |   |   | $ | 1,083,551 |   |
|                                                 |   |                                              |       |   |   |   |   |   |
| SUPPLEMENTAL CASH FLOW INFORMATION:                  |   |                                              |       |   |   |   |   |   |
|                                                 |   |                                              |       |   |   |   |   |   |
| Cash paid during the period for interest             |   | $                                                 | 1,506      |   |   | $ | 181 |   |
|                                                 |   |                                              |       |   |   |   |   |   |
| Cash paid during the period for income taxes         |   | $                                                 | —    |   |   | $ | — |   |

----

----

----

|                   |   | Federal |   |   | State  |   |   | Total  |   |
|------------------------|--------|---------|--------|--------|--------|--------|--------|--------|--------|
|                   |   |    |   |   |   |   |   |   |   |
| Current tax provision  |   | $       | 40,300 |   |   | $      | 5,900  |   |   | $ | 46,200 |   |
| Deferred tax provision |   |    | 17,700 |   |   |   | 5,000  |   |   |   | 22,700 |   |
|                   |   |    |   |   |   |   |   |   |   |   |   |   |
|                   |   | $       | 58,000 |   |   | $      | 10,900 |   |   | $ | 68,900 |   |

|                   |   | Federal |   |   | State  |   |   | Total  |   |
|------------------------|--------|---------|--------|--------|--------|--------|--------|--------|--------|
|                   |   |    |   |   |   |   |   |   |   |
| Current tax provision  |   | $       | 17,000 |   |   | $      | 3,000  |   |   | $ | 20,000 |   |
| Deferred tax provision |   |    | 29,950 |   |   |   | 8,600  |   |   |   | 38,550 |   |
|                   |   |    |   |   |   |   |   |   |   |   |   |   |
|                   |   | $       | 46,950 |   |   | $      | 11,600 |   |   | $ | 58,550 |   |

----

----

|                           |   | Number           |    |   | Weighted-Average                                                                            |   |
|--------------------------------|--------|------------------|---------|--------|---------------------------------------------------------------------------------------------|--------|
| (Unaudited)                    |   | of Warrants |    |   |       Exercise Price       |   |
|                           |   |             |    |   |                                                                                        |   |
| Outstanding, December 31, 2010 |   |             | 25,000  |   |                                                                                        | $      | 3.20 |   |
| Granted                        |   |             | — |   |                                                                                        |   | — |   |
| Exercised                      |   |             | (10,000 | )      |                                                                                        |   | 3.20 |   |
| Cancelled                      |   |             | — |   |                                                                                        |   | — |   |
| Outstanding, March 31, 2011    |   |             | 15,000  |   |                                                                                        | $      | 3.20 |   |

| Grant Date            |   | November, 2008 |   |
|-----------------------|--------|----------------|--------|
| Strike Price          |   | $              | 3.20   |   |
| Expiration Date       |   | November, 2011 |   |
| Warrants Remaining    |   |           | 15,000 |   |
| Proceeds if Exercised |   | $              | 48,000 |   |

----

| Balance at December 31, 2010 |   | $      | 1,235,193 |   |
|------------------------------|--------|--------|-----------|--------|
| Incurred during the period   |   |   | —   |   |
| Additions for new wells      |   |   | —   |   |
| Accretion expense            |   |   | 16,335    |   |
| Balance at March 31, 2011    |   | $      | 1,251,528 |   |

----

----

----

----

|   | a. | Exhibits |
|--------|----|----------|

|   | 31.1 | Certification of the Registrant's Principal Executive Officer under Exchange Act Rules 13a-14(a) and 15-d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification of the Registrant's Principal Financial Officer under Exchange Act Rules 13a-14(a) and 15-d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification of the Registrant's Principal Executive Officer under 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | Certification of the Registrant's Principal Financial Officer under 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                | PYRAMID OIL COMPANY     |   |
|---------------------|-------------------------|--------|
|                | (registrant)            |   |
|                |                    |   |
| Dated: May 13, 2011 | JOHN H. ALEXANDER       |   |
|                | John H. Alexander       |   |
|                | President               |   |
|                |                    |   |
| Dated: May 13, 2011 | LEE G. CHRISTIANSON     |   |
|                | Lee G. Christianson     |   |
|                | Chief Financial Officer |   |

----