Painted Pony Commences Alberta Light Oil Exploration Project, Revises 2012 Capital Program and is a 2012 TSX Venture 50 Company

Painted Pony Petroleum Ltd. ("Painted Pony" or the "Company") (TSX
VENTURE:PPY.A) is pleased to provide the following corporate update:


Central Alberta Light Oil Exploration Project

Painted Pony has initiated exploration activity on a new light oil play in
central Alberta. To date, the Company has secured access to approximately 22 net
sections (14,000 net acres) of mineral rights which include the Viking
formation. The Company has acquired 11.75 net sections of primarily Crown 100%
working interest lands. In addition, Painted Pony has executed a farm-in
agreement on 10.1 net sections of Crown and freehold lands. All lands are
considered prospective for a regional light oil accumulation in the Viking
formation. Under the terms of the farmin agreement, Painted Pony has committed
to drill at least 1 (1.0 net) horizontal Viking well, subject to a
non-convertible gross overriding royalty. The Company expects to commence
drilling in February, 2012.


Revised 2012 Capital Program

In a press release dated November 24, 2011, the Company announced plans to spend
approximately $200 million during 2012, with a major portion of this capital
allocated to the ongoing development of the Company's Montney gas project in
northeastern British Columbia. Given the recent decline in North American
natural gas prices, Painted Pony has revised its 2012 capital program to reduce
both the overall amount of its capital program and to slow its investment in gas
projects in northeastern British Columbia. Should natural gas prices improve,
the Company may re-evaluate this plan. In addition, the Company plans to curtail
approximately 10% of its 2012 gas production pending improvements in gas prices.


The revised program now totals $120 million, of which approximately 55% is
directed towards oil projects. Under this revised budget, the Company plans to
drill 29 (21.6 net) wells targeting light oil and 7 (4.1 net) wells targeting
natural gas in 2012. The capital expenditures targeting natural gas are expected
to result in significant reserve additions. 


In commenting on the Company's revised 2012 program, Mr. Patrick Ward, President
& C.E.O., said: "Painted Pony is in the unique and fortunate position of being
well-positioned financially. At December 31, 2011, Painted Pony had an undrawn
demand credit facility of $80 million and $97 million of available cash, less an
estimated net current liability of approximately $30 million. We remain focused
on value creation for our shareholders and we have the flexibility to
re-allocate our resources, as may be appropriate, in response to commodity price
cycles in both oil and natural gas."


LNG Export Co-operative

Painted Pony's Montney project provides shareholders with exposure to a
scalable, high-impact, liquids-rich natural gas resource project, offering
future access to emerging Canadian LNG (Liquefied Natural Gas) export
opportunities. On February 2, 2012, the National Energy Board approved an
application by BC LNG Export Co-operative LLC for a license to export LNG from
Kitimat, British Columbia. The application indicated LNG sales would not be
available before the fourth quarter of 2013. The co-operative is comprised of
the Haisla First Nation, plus natural gas marketers, and LNG buyers and
producers, including Painted Pony. The project will utilize existing natural gas
pipeline transmission capacity on the existing PNG system. The export license
authorizes the export of 36 million tonnes of LNG, equivalent to 1.7 Tcf (47.9
billion cubic meters) of natural gas, over a 20 year period. The Company is also
exploring additional LNG West Coast projects.


2012 TSX Venture 50

Painted Pony is pleased to announce that the TSX Venture Exchange today named
Painted Pony as one of the 2012 TSX Venture 50, a ranking of strong performers
listed on the TSX Venture Exchange. The TSX Venture 50 is comprised of 10
emerging companies in five industry sectors that have been identified as leaders
in Canada's public venture market.


The TSX Venture 50(R) are the top 10 companies listed on the TSX Venture
Exchange, in each of five major industry sectors - mining, oil & gas, technology
& life sciences, diversified industries and clean technology - based on a
ranking formula with equal weighting given to return on investment, market cap
growth, trading volume and analyst coverage. All data was as of December 31,
2011.


Investor Presentation

An updated investor presentation will be available on the Company's website
(www.paintedpony.ca) on February 17, 2012. 


Painted Pony Petroleum Ltd. was recognized as a TSX Venture 50(R) Company in
2012. TSX Venture 50 is a trade-mark of TSX Inc. and is used under license.


Advisory

Special Note Regarding Forward-Looking Information

This news release contains certain forward-looking statements, which 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.


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, and natural gas prices will remain low,
throughout 2012; (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) production rates in
2012 are expected to show growth from the fourth quarter of 2011; (v) Painted
Pony will have sufficient financial resources with which to conduct the capital
program; and (vi) 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
its future plans and operations, the planning and development of certain
prospects, its estimated revised 2012 capital program, and expected increases in
reserves, 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.