Painted Pony Petroleum Ltd. ("Painted Pony" or the "Company") (TSX
VENTURE:PPY.A) (TSX VENTURE:PPY.B) is pleased to provide further information on
its Montney drilling program and an operational update.


MONTNEY DEVELOPMENT UPDATE

The Company's capital program on the operated Blair/Town block in northeastern
British Columbia continues to focus on proving up the high deliverability
potential of the upper, middle and lower Montney zones using multi-frac
horizontal well technology. Painted Pony has completed five (2.3 net) Montney
wells on this project during the first five months of 2011. Initial gas rates
have exceeded expectations. 


At the Blair d-5-K/94-B-16 location, the Company drilled and completed its first
three-well production pad, with each horizontal well targeting one of the
Montney horizons. The upper Montney produced at 6.4 mmcf/d at 760 psi after ten
days; the middle Montney produced at 5.8 mmcf/d at 1,100 psi after ten days and
the lower Montney produced at 7.7 mmcf/d at 1,100 psi after five days. The
middle Montney wellbore at d-5-K is located more than 15 miles north of the
nearest middle Montney horizontal producer and represents the first horizontal
completion in this zone on the Blair/Town block. All three wells were completed
during spring break-up, and tied into existing infrastructure, after a brief
clean-up phase. Painted Pony holds a 50% working interest in these wells. 


In addition to the d-5-K pad, two more Montney wells have been brought on stream
during May 2011. The d-8-F/94-B-16 vertical well (50% working interest)
commenced production at 2.9 mmcf/d and the d-40-F/94-B16 lower Montney
horizontal (30% working interest) began production at 4.5 mmcf/d after
re-completion.


The Company has continued to refine its operational drilling and completion
techniques on the Blair/Cameron project. The most recent wells were drilled in
an average of 19 days, as compared to approximately 30 days for earlier wells.
These efficiencies have reduced estimated drilling costs by up to $1 million
gross per well. 


OPERATIONAL UPDATE 

Painted Pony continues to acquire additional lands to complement existing assets
in each of its core operating regions. Accordingly, the Company currently holds
132 net sections (84,000 net acres) in Saskatchewan and 203 net sections
(130,000 net acres) in British Columbia, including 124 net sections (79,000 net
acres) of Montney rights. Year-to-date, the Company has drilled 9 (6.6 net)
wells in Saskatchewan and 5 (2.7 net) wells in British Columbia.


Saskatchewan operations and production volumes have been negatively impacted
during the second quarter of 2011 due to an unusually wet and extended spring
break-up. Approximately 15% of the Company's oil production has been temporarily
shut-in due to road bans and flooding. Field operations have also been delayed,
however normal activity is expected to resume in June 2011. 


Painted Pony's production has grown to approximately 4,000 boe/d during the
first quarter of 2011 (50% oil and liquids), compared to 3,443 boe/d in the
fourth quarter of 2010, an increase of 16%. During June 2011, the Company
expects approximately 650 boe/d of gas production from the Cameron/Kobes area to
be temporarily shut-in for 21 days for the scheduled McMahon gas processing
plant turn-around. 


APPOINTMENTS 

Painted Pony announces James French has been appointed to the role of Vice
President, Production Operations (previously Vice President, Engineering), and
Michael Belenkie has been appointed to the role of Vice President, Corporate
Development and Reservoir Engineering (previously Vice President, Corporate
Development). We congratulate Messrs. French and Belenkie on their new roles as
the Company prepares to enter a new stage of growth.


INVESTOR RELATIONS

Painted Pony will be undertaking a series of presentations to interested parties
over the next several weeks in cities in Canada and the United States.
Interested parties are invited to visit the Company's website to view an updated
presentation dated May 25, 2011. For more information please visit
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; (ix) the current tax and regulatory regime will remain
substantially unchanged; and (x) the time required to complete the McMahon gas
processing plant turn-around. 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, weather conditions (including access to well sites and leases),
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.


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