Painted Pony Petroleum Ltd. ("Painted Pony" or the "Company") (TSX
VENTURE:PPY.A)(TSX VENTURE:PPY.B) is pleased to report their financial results
for the three months ended March 31, 2011 and an operational update. During the
first quarter of 2011, Painted Pony Petroleum Ltd. continued to enjoy financial
and operational success. Quarterly results include the following: 




--  grew daily production to average 4,027 boe per day (weighted 50% oil and
    liquids and 50% gas) up 73% from first quarter 2010 and 17% from fourth
    quarter 2010; 
--  generated funds flow from operations of $12.1 million ($0.21 per diluted
    share); 
--  raised $80.0 million in a bought deal financing; 
--  exited the first quarter of 2011 with positive working capital of $64.1
    million and no debt with unutilized, increased credit facilities of $75
    million; 
--  realized first quarter 2011 field netbacks of $59.08 per bbl for oil, on
    sales prices averaging $87.08 per bbl; and, 
--  added land in both Saskatchewan and British Columbia, bringing total
    land holdings to over 200,000 net acres. 



OPERATIONAL ACTIVITIES

The Company conducted an active capital program during the first quarter of
2011, which included the drilling of 12 (8.1 net) wells.


BRITISH COLUMBIA

Painted Pony continues to focus on developing and expanding its liquid rich
Montney gas project at Blair-Cameron in northeast British Columbia. Given recent
operational successes, the Company has moved the Montney gas project beyond
piloting into delineation and development. Three wells (1.5 net) on a single pad
were drilled for Montney, each one targeting a different layer (Upper, Middle
and Lower) of the Montney. All three (1.5 net) were successfully completed and
put on production in the second quarter of 2011. The Montney project in
northeastern British Columbia continues to perform above expectations. With
several successful wells producing from each of the three primary targets within
the Montney, Painted Pony plans to move to further delineation and development
of this world-class resource. 


Painted Pony also continues to actively evaluate the Buckinghorse shale gas
potential. The first stimulations of two (1.0 net) wells drilled in late 2010,
in this 800 meter thick resource, are currently planned for early in the fourth
quarter of 2011. 


SASKATCHEWAN

In Saskatchewan 9 (6.6 net) wells were drilled during the first quarter of 2011
targeting light oil. The Company enjoyed drilling success at Midale (Bakken),
Alameda (Mississippian), and Ingoldsby (Mississippian). Further completions of
the first quarter drilled wells have been put on hold by an extended period of
unusually wet weather and associated flooding. This unusually long spring
breakup has persisted since mid-March. The affected area covers a wide swath of
industry activity and incorporates most of the Company's working interest oil
properties. As with most operators in the area, the flooding conditions have
significantly impacted Painted Pony's production operations, drilling program
and work-over projects. To date, the Company estimates these adverse conditions
have delayed the drilling schedule by more than 60 rig days in comparison to
prior years. 


Most recently, several towns in the Weyburn/Midale district experienced severe
flooding and a state of emergency was declared by the province of Saskatchewan.
Painted Pony continues to monitor the Saskatchewan situation, however at this
time it is difficult to estimate when normal oilfield operations will resume.
Accordingly, certain production volumes and new production additions may
continue to be curtailed or delayed. This has been a major problem for all oil
producers in the area and also for local farmers who have been unable to plant
crops. The Energy Minister of Saskatchewan recently stated that this is a once
in 500 years event.


PRODUCTION 

Daily production grew to average 4,027 boe per day in the first quarter of 2011,
up 17% over the fourth quarter of 2010, and 73% over the first quarter of 2010.
Daily Saskatchewan sales in the first quarter averaged 2,082 boe per day
(weighted 95% oil and liquids) and sales from British Columbia averaged 1,945
boe per day (weighted 99% gas). 


Production in the second quarter has been adversely affected by flooding in
Saskatchewan, and gas plant disruptions in both Saskatchewan and British
Columbia have resulted in the Company's production being reduced by an estimated
500 boe/d. The Company expects to return to normal production growth in the
third quarter of 2011.


LAND

At March 31, 2011, the Company held 200,521 net acres of land, consisting of
76,049 net acres (119 net sections) in Saskatchewan and 124,472 net acres (194
net sections) in British Columbia. To date during the second quarter of 2011,
the Company has completed an asset acquisition and continues to participate in
Crown land sales that complement existing core areas. The Company now has over
81,000 net acres (127 net sections) of Montney rights in northeastern British
Columbia. A number of joint ventures have been announced in recent months in the
"Northern Montney Trend" and land prices continue to escalate offsetting Painted
Pony lands, despite suppressed gas prices. 


FINANCIAL RESOURCES

Painted Pony's focus on conservative fiscal management continues. In February
2011, the Company issued 7,620,000 Class A shares at $10.50 per share, raising
gross proceeds of $80.0 million. At March 31, 2011, Painted Pony had a positive
working capital position of $64.1 million and no debt. In March 2011, the demand
revolving operating credit facility was increased to $75.0 million, replacing
the previous $65.0 million demand revolving credit facility. The facility is
subject to review on or before September 30, 2011.


IFRS

Painted Pony's conversion to IFRS, including the redetermination of 2010
operations under IFRS in comparison to GAAP was completed during the second
quarter of 2011. The net impact on funds flow from operations was minor (March
2011: $45,000 and March 2010: $10,000), notwithstanding numerous differences in
components of after tax net income. 


INVESTOR RELATIONS

Interested parties are invited to visit the Company's website on Wednesday, June
29, 2010 to view an updated presentation. 


Painted Pony Class A Shares and Class B Shares trade on the TSX Venture Exchange
under the symbols "PPY.A" and "PPY.B", respectively. For further information,
please see www.paintedpony.ca.




Financial and Operational Highlights
(unaudited)

---------------------------------------------------------------------------
Three months ended March 31,                            2011           2010
---------------------------------------------------------------------------
Financial (000's except per share)                                         
Petroleum and natural gas revenue (before          
 royalties)                                        $  19,315      $  14,146
Funds flow from operations(1)                      $  12,098      $   9,156
  Per share - basic(2)                             $    0.22      $    0.21
  Per share - diluted(3)                           $    0.21      $    0.20
Cash flow from operating activities                $  11,555      $   9,221
Net income                                         $   2,144      $   1,546
  Per share - basic(2)                             $    0.04      $    0.04
  Per share - diluted(3)                           $    0.04      $    0.03
Capital expenditures(4)                            $  25,085      $  35,482
Net working capital                                $  64,100      $  15,639
Total assets                                       $ 330,156      $ 186,881
Shares outstanding                                                         
  Class A                                         59,186,073     44,136,700
  Class B                                          1,173,600      1,173,600
Operational                                                                
Daily sales volumes                                                        
 Oil (bbls per day)                                    1,811          1,722
 Condensate (bbls per day)                                54             27
 NGL's (bbls per day)                                    141             19
 Gas (mcf per day)                                    12,126          3,322
 Total (boe per day)                                   4,027          2,322
Realized prices                                                            
 Oil (per bbl)                                     $   87.08      $   79.58
 Gas (per mcf)                                     $    3.77      $    5.21
Field operating netbacks                                                   
 Oil (per bbl)                                     $   59.08      $   58.71
 Gas & associated liquids                          
  (per boe)                                        $   17.03      $   13.45
 Company combined (per boe)                        $   35.95      $   47.02
---------------------------------------------------------------------------
                                                                           

1.  This table contains the term "funds flow from operations", which should
    not be considered an alternative to, or more meaningful than "cash flow
    from operating activities" as determined in accordance with
    International Financial Reporting Standards ("IFRS") as an indicator of
    the Company's performance. Funds flow from operations and funds flow
    from operations per share (basic and diluted) does not have any
    standardized meaning prescribed by IFRS and may not be comparable with
    the calculation of similar measures for other entities. Management uses
    funds flow from operations to analyze operating performance and leverage
    and considers funds flow from operations to be a key measure as it
    demonstrates the Company's ability to generate the cash necessary to
    fund future capital investment. The reconciliation between funds flow
    from operations and cash flow from operating activities can be found in
    "Management's Discussion and Analysis". Funds flow from operations per
    share is calculated using the basic and diluted weighted average number
    of shares for the period, and after the deemed conversion of the Class B
    shares to Class A shares, consistent with the calculations of earnings
    per share. 
2.  Basic per share information is calculated on the basis of the weighted
    average number of Class A shares outstanding in the period. 
3.  Diluted per share information reflects the potential dilution effect of
    options and the convertible Class B shares, each of which may be anti-
    dilutive. Net income is adjusted for the amount of finance expense
    applicable to the Class B shares for the period. The conversion of Class
    B shares into Class A shares, if dilutive, is computed by dividing $10
    by the greater of $1.00 and the Current Trading Price, defined as the
    weighted average trading price of the Class A shares for the last 30
    consecutive trading days. 
4.  Including decommissioning obligations and share-based payments. 



Advisory

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 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) production rates in 2011 are expected to show growth from the
fourth quarter of 2010; (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
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, 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.


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.


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