1

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, DC 20549 



                                   FORM 8-K 

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


                                 January 16, 2006
               (Date of Report - date of earliest event reported)
 

                        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))



 2

Section 8 - Other Events


Item 8.01  Other Events

     PYRAMID OIL COMPANY, Bakersfield, California, symbol PYOL, announced that
it began drilling operations on Saturday, January 14, 2006, on the first
development well of a three well infield drilling program in Kern County,
California.  All three of these wells are located within Pyramid Oil Company's
Carneros Creek field.  Results of the wells 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 these wells.





















          








 3

                                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 16, 2006 

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