Painted Pony Petroleum Announces Bakken Acquisition, Operational Update and Notification of Live Webcast Event

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES


Painted Pony Petroleum Ltd. ("Painted Pony" or the "Company") (TSX
VENTURE:PPY.A)(TSX VENTURE:PPY.B) is pleased to announce a Bakken oil
acquisition in the Flat Lake area of southeast Saskatchewan and provide an
operational update.


FLAT LAKE BAKKEN ACQUISITION

Painted Pony has signed a letter of intent to acquire a 9.4 net section block
(6,018 net acres) of land and approximately 45 bbls/d of Bakken oil production
at Flat Lake for $7.7 million. The asset is contiguous with Painted Pony's
existing Flat Lake lands where the Company previously announced a Bakken
discovery well (please refer to the press release dated November 9, 2010). The
asset is entirely on crown lands that qualify to receive the Saskatchewan deep
horizontal royalty incentive. The letter of intent is subject to a number of
standard conditions and the transaction is expected to close in early April
2011. The Company has identified more than 20 net low-risk Bakken locations on
the acquired block. Two (0.6 net) wells have been licensed on these lands and
are expected to be drilled during the second quarter of 2011.


OPERATIONAL UPDATE

In Saskatchewan, Painted Pony has drilled 8 (6.3 net) wells year-to-date, with 2
(1.3 net) additional wells currently drilling. The Company plans to drill a
total of 57 (38.3 net) Saskatchewan wells in 2011. 


In the Blair/Town area of British Columbia, Painted Pony has drilled 2 (1.0 net)
Montney wells year-to-date, with 1 (0.5 net) additional well currently drilling.
In the Cameron/Kobes area, 1 (0.2 net) well is currently drilling. The Company
plans to drill a total of 13 (8.3 net) Montney wells in 2011, as it continues to
de-risk its large land blocks. By the end of this year, the Company expects to
have multiple wells into each of the three productive Montney intervals on both
the Cameron/Kobes and Blair/Town blocks. Painted Pony's first seven horizontal
Montney wells have averaged 5.5 mmcf/d (ranging from 2.2 mmcf/d to 11.3 mmcf/d)
over the first 60 days of production, with average liquids content of 20
bbls/mmcf. 


In the first quarter of 2011, Painted Pony completed its first Lower Montney
horizontal well (30% WI) on the Blair block, approximately 8 miles south west
from the nearest Lower Montney well. The peak test rate was 9.1 mmcf/d and the
well was producing at a stabilized rate of approximately 3.6 mmcf/d at over 950
psi, after 13 days on-production. Operational challenges were encountered during
the completion program, which resulted in only 4 effective frac stages of 8
planned. This well significantly de-risks the Lower Montney on the Company's
lands.


Painted Pony's 2011 field-estimated average production to-date is approximately
4,000 boe/d, weighted 52% oil and liquids. 


OUTLOOK

Painted Pony has accelerated its capital budget to $160 million in 2011 from the
previously announced $95 million (see Nov 25, 2010 press release). The budget is
allocated approximately 47% to British Columbia targeting liquids-rich Montney
gas and 53% towards Saskatchewan targeting Bakken and Mississippian light oil
plays. The Company plans to grow both core areas at a steady pace while
maintaining financial flexibility and a conservative balance sheet.


RETIREMENT

Bruce Mezei, Vice-President of Exploration (South), announced his retirement,
effective April 15, 2011. Mr. Mezei has been with Painted Pony since the
Company's inception, and has been a major contributor to its success. Painted
Pony thanks Mr. Mezei for his contributions and wishes him the best in his
retirement. 


INVESTOR RELATIONS 

Painted Pony will be presenting at the FirstEnergy/ Societe Generale East Coast
Energy Conference in New York, New York on Wednesday, March 9, 2011, 2:50 PM EST
(12:50 PM MST). To listen and view this online event, please visit:
http://jetslides.tv/lobby/371. The Company will also be undertaking a series of
presentations to interested parties over the next week in cities in the United
States. Interested parties are invited to visit the Company's website to view an
updated presentation dated March 7, 2011. The webcast event will be available in
an archived version at this link for 30 days following the live presentation.
For more information on the webcast please visit www.firstenergy.com or see
www.paintedpony.ca. 


Advisory 

BOEs may be misleading, particularly if used in isolation. A BOE conversion
ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.


Special Note Regarding Forward-Looking Information

This news release contains certain forward-looking information, (collectively
referred to herein as "forward looking statements") within the meaning of
applicable Canadian securities laws. Forward-looking statements are often, but
not always, identified by the use of words such as "anticipate", "believe",
"plan", "potential", "intend", "objective", "continuous", "ongoing",
"encouraging", "estimate", "expect", "may", "will", "project", "should", or
similar words suggesting future outcomes. These forward-looking statements are
based on numerous assumptions including but not limited to (i) drilling success;
(ii) production; (iii) future capital expenditures; and (iv) cash flow from
operating activities. The reader is cautioned that assumptions used in the
preparation of such information may prove to be incorrect. Forward-looking
statements are based upon the opinions and expectations of management of the
Company as at the effective date of such statements and, in some cases,
information supplied by third parties. Although the Company believes that the
expectations reflected in such forward-looking statements are based upon
reasonable assumptions and that information received from third parties is
reliable, it can give no assurance that those expectations will prove to have
been correct. Forward-looking statements are subject to certain risks and
uncertainties that could cause actual events or outcomes to differ materially
from those anticipated or implied by such forward-looking statements.


With respect to forward-looking statements contained in this document, Painted
Pony has made a number of assumptions. The key assumptions underlying the
aforementioned forward-looking statements include assumptions that: (i)
commodity prices will be volatile throughout 2011; (ii) capital, undeveloped
lands and skilled personnel will continue to be available at the level Painted
Pony has enjoyed to date; (iii) Painted Pony will be able to obtain equipment in
a timely manner to carry out exploration, development and exploitation
activities; (iv) Painted Pony will have sufficient financial resources with
which to conduct the capital program; (v) the accuracy of geological and
geophysical data and Painted Pony's interpretation of that data; (vi)the results
of wells drilled by Painted Pony to date on its properties and production from
those wells, the results of wells drilled by third parties in the vicinity of
the Company's properties; (vii) that production from new wells will be
substantially similar to production rates associated with existing wells in the
vicinity of the Company's properties; (viii) the continued ability of the
Company to generate internal cash flow and the availability of capital on
acceptable terms; and (ix) the current tax and regulatory regime will remain
substantially unchanged. Certain or all of the forgoing assumptions may prove to
be untrue.


Certain information regarding Painted Pony set forth in this document, including
management's assessment of Painted Pony's future plans and operations, number,
type and timing of wells to be drilled, the planning and development of certain
prospects, production estimates, treatment under governmental regulatory regimes
and expected production growth may constitute forward-looking statements under
applicable securities laws and necessarily involve substantial known and unknown
risks and uncertainties. These forward-looking statements are subject to
numerous risks and uncertainties, certain of which are beyond Painted Pony's
control, including without limitation, risks associated with oil and gas
exploration, development, exploitation, production, marketing and
transportation, loss of markets, volatility of commodity prices, environmental
risks, inability to obtain drilling rigs or other services, capital expenditure
costs, including drilling, completion and facility costs, unexpected decline
rates in wells, wells not performing as expected, delays resulting from or
inability to obtain required regulatory approvals and ability to access
sufficient capital from internal and external sources, the impact of general
economic conditions in Canada, the United States and overseas, industry
conditions, changes in laws and regulations (including the adoption of new
environmental laws and regulations) and changes in how they are interpreted and
enforced, increased competition, the lack of availability of qualified personnel
or management, fluctuations in foreign exchange or interest rates, and stock
market volatility and market valuations of companies with respect to announced
transactions and the final valuations thereof. 


Readers are cautioned that the foregoing list of factors is not exhaustive.
Painted Pony's actual results, performance or achievement could differ
materially from those expressed in, or implied by, these forward-looking
statements and, accordingly, no assurance can be given that any of the events
anticipated by the forward-looking statements will transpire or occur, or if any
of them do so, what benefits, including the amount of proceeds, that the Company
will derive therefrom. All subsequent forward-looking statements, whether
written or oral, attributable to the Company or persons acting on its behalf are
expressly qualified in their entirety by these cautionary statements.


Additional information on these and other factors that could affect Painted
Pony's operations and financial results are included in reports on file with
Canadian securities regulatory authorities and may be accessed through the SEDAR
website (www.sedar.com) or Painted Pony's website (www.paintedpony.ca).


The forward-looking statements contained in this document are made as at the
date of this news release and Painted Pony does not undertake any obligation to
update publicly or to revise any of the included forward-looking statements,
whether as a result of new information, future events or otherwise, except as
may be required by applicable securities laws.