Painted Pony Petroleum Ltd. ("Painted Pony" or the "Company") (TSX
VENTURE:PPY.A) is pleased to announce the Company's 2011 year-end reserves
report and land valuation.


The highlights of Painted Pony's 2011 year end reserve and land reports include:



--  increased the net present value, discounted at 8%, before income taxes,
    of proved plus probable reserves to $1.3 billion ($1.1 billion
    discounted at 10%); 
    
--  increased proved plus probable reserves to 136.9 mmboe, up 321% from
    32.5 mmboe at December 31, 2010; with approximately 12% of its Montney
    land base assigned reserves; 
    
--  grew proved plus probable reserves per weighted average share by 238%; 
    
--  increased total proved reserves by 177% to 31.4 mmboe from 11.3 mmboe at
    December 31, 2010; 
    
--  replaced 2011 production by 68.7 times; 
    
--  achieved a recycle ratio of 3.5 times, based on average 2011 estimated
    netback of $31.34/boe; 
    
--  increased proved plus probable reserve life index ("RLI") to 71.7 years;
    and 
    
--  Increased the value of undeveloped land holdings to $179.8 million.



RESERVES 

The reserves data of the Company are based upon independent evaluations by GLJ
Petroleum Consultants Ltd. ("GLJ") and Sproule Associates Limited ("Sproule")
each with an effective date of December 31, 2011 as contained in a consolidated
report of GLJ dated March 6, 2012 (the "Painted Pony Reserve Report"). The
tables below summarize Painted Pony's crude oil, natural gas liquids ("NGL") and
natural gas reserves and the net present values of future net revenue
attributable to such reserves as evaluated in the Painted Pony Reserve Report,
based on GLJ's January 1, 2012 forecast prices and costs assumptions. GLJ
evaluated the Company's reserves on its British Columbia properties and Sproule
evaluated the Company's reserves on its Saskatchewan properties. Sproule
incorporated the GLJ forecast prices and costs assumptions in their evaluation.
GLJ prepared the Painted Pony Reserve Report by consolidating the GLJ evaluation
with the Sproule evaluation, all run on the GLJ pricing and cost assumptions.


At December 31, 2011, the Company consolidated proved plus probable reserves
were 136.9 mmboe, up 321% from 32.5 mmboe at December 31, 2010, and up 60% from
85.6 mmboe at June 30, 2011. Total proved working interest reserves were 31.4
mmboe, compared to 21.8 mmboe at June 30, 2011 and 11.3 mmboe as at December 31,
2010. 


Painted Pony's net present value of proved plus probable reserves ("NPV") as at
December 31, 2011 discounted at 8% was $1.3 billion. At December 31, 2011, at a
discount rate of 10%, the Company's NPV was $1.1 billion, a 33% increase from
the June 30, 2011 NPV, and a 200% increase from the December 31, 2010 NPV. 




----------------------------------------------------------------------------
                                                                            
Summary of Company Reserves (1),(3),(5)                                     
Forecast Prices and Costs                                                   
----------------------------------------------------------------------------
                                                             As at     As at
                                                          June 30,  Dec. 31,
                       As at December 31, 2011                2011      2010
              Light and   Natural  Natural Gas                              
             Medium Oil       Gas     Liquids     Total     Total     Total 
                 (mbbl) (mmcf)(4)       (mbbl) (mboe)(2) (mboe)(2) (mboe)(2)
----------------------------------------------------------------------------
Proved                                                                      
 Developed                                                                  
  producing       2,024    38,620          808     9,269     6,536     4,477
 Developed                                                                  
  non-                                                                      
  producing          50    10,673          188     2,017       252        48
 Undeveloped        837   102,892        2,113    20,098    15,057     6,811
----------------------------------------------------------------------------
Total proved      2,911   152,186        3,108    31,383    21,845    11,336
Probable          2,188   549,875       11,660   105,494    63,750    21,203
----------------------------------------------------------------------------
Total proved                                                                
 plus                                                                       
 probable         5,099   702,060       14,768   136,877    85,594    32,539
----------------------------------------------------------------------------



Notes:

(1) Painted Pony's total working interest reserves are before royalties owned by
others. 


(2) Oil equivalent amounts (boe) have been calculated using a conversion rate of
six thousand cubic feet of natural gas per barrel of oil (6 mcf: 1 bbl). 


(3) One thousand barrels is equal to 1 mbbl, and one thousand boe is equal to 1
mboe. One million cubic feet of natural gas is equal to 1 mmcf. 


(4) Includes non-associated gas, associated gas and solution gas. 

(5) Numbers in this table are subject to rounding error.



----------------------------------------------------------------------------
Summary of Net Present Values of Future Net Revenue (1),(2),(3),(4),(5)     
Forecast Prices and Costs ($ millions)                                      
Before Income Taxes                                                         
----------------------------------------------------------------------------
                                                     As at June   As at Dec.
                        As at December 31, 2011       30, 2011     31, 2010 
                       0%     5%     8%    10%  15%      0%  10%     0%  10%
----------------------------------------------------------------------------
Proved                                                                      
  Developed                                                                 
   producing          239    191    171    160  139     213  145    145  108
  Developed non-                                                            
   producing           50     34     28     26   21       5    4      0    0
  Undeveloped         408    243    185    157  107     329  136    123   49
----------------------------------------------------------------------------
Total proved          697    468    385    343  267     547  284    268  157
Probable            2,660  1,279    892    719  444   1,768  514    485  197
----------------------------------------------------------------------------
Total proved plus                                                           
 probable           3,358  1,747  1,277  1,062  711   2,315  798    753  354
----------------------------------------------------------------------------



Notes:

(1) Painted Pony's total working interest reserves are before royalties owned by
others. The estimated future net revenues are stated before deducting income
taxes and future estimated site restoration costs and are reduced for estimated
future abandonment costs, the Saskatchewan Capital Tax and estimated capital for
future development associated with the reserves. 


(2) It should not be assumed that the undiscounted and discounted net present
values represent the fair market value of the reserves. 


(3) The price deck used for the evaluation as at December 31, 2011 was the GLJ
price deck dated January 1, 2012. 


(4) Numbers in this table are subject to rounding error.

Painted Pony's average production for 2011 was 4,221 boe/d (38% oil and
liquids), with the fourth quarter production averaging 5,189 boe/d (32% oil &
liquids). The Company's 2011 proved plus probable working interest reserve
additions replaced 2011 production by 68.7 times, and annualized fourth quarter
production by 55.5 times.


The net change in the future development costs ("FDC") associated with the
proved plus probable reserves is $780.3 million and $105.8 million for proved
reserves. Of the FDC expenditures included in the Painted Pony Reserve Report
for proved plus probable reserves, approximately 20% or $204.6 million is
expected to be incurred in 2012 and 2013, with the remainder expected to be
invested through 2018.




----------------------------------------------------------------------------
Future Development Costs ($thousands)(1)                                    
                                             Proved     Proved plus Probable
----------------------------------------------------------------------------
As at December 31, 2011                                                     
   2012                                      60,616                   69,228
   2013                                      72,511                  135,355
   2014                                      49,481                  152,065
   2015                                      15,303                  151,854
   2016                                           -                  139,980
   2017                                           -                  296,335
   2018                                           -                   82,435
----------------------------------------------------------------------------
Total                                       197,911                1,027,253
----------------------------------------------------------------------------
As at December 31, 2010                      92,146                  246,968
----------------------------------------------------------------------------



Notes: 

(1) Numbers in this table are subject to rounding error.

The Company's proved reserve life index ("RLI") increased to 16.4 years while
the proved plus probable RLI is 71.7 years, as compared to 8.9 and 25.7 years,
respectively, at December 31, 2010, based on fourth quarter sales annualized.
The growth in reserves volumes resulted from Painted Pony's successful 2011
drilling and acquisition program. In 2011, the Company drilled 42 (29.3 net)
wells; of which 29 (20.7 net) were oil wells and 13 (8.6 net) were gas wells. 


Painted Pony's total capital expenditures (unaudited) in 2011 were $165.5
million. This includes non-cash charges such as $3.4 million of non-cash share
based payments and $3.4 million of non-cash decommissioning costs.


Painted Pony's Montney-based reserves in British Columbia account for a
significant amount of the Company's reserves, and incorporate assigned reserves
to approximately 12 percent of the Company's Montney acreage. At December 31,
2011, the Company's reserves in British Columbia are as follows:


Summary of Company Reserves(1),(3),(5)

British Columbia Assets

Forecast Prices and Costs



----------------------------------------------------------------------------
                                       As at December 31, 2011              
                              Light and               Natural Gas           
                             Medium Oil  Natural Gas      Liquids      Total
                                 (mbbl)    (mmcf)(4)       (mbbl)  (mboe)(2)
----------------------------------------------------------------------------
Proved                                                                      
  Developed producing                 -       37,366          571      6,799
  Developed non-                                                            
   producing                          -       10,673          188      1,967
  Undeveloped                         -      102,587        2,041     19,139
----------------------------------------------------------------------------
Total proved                          -      150,626        2,800     27,904
Probable                              -      548,801       11,450    102,916
----------------------------------------------------------------------------
Total proved plus                                                           
 probable                             -      699,427       14,249    130,820
----------------------------------------------------------------------------



Notes:

(1) Painted Pony's total working interest reserves are before royalties owned by
others. 


(2) Oil equivalent amounts (boe) have been calculated using a conversion rate of
six thousand cubic feet of natural gas per barrel of oil (6 mcf: 1 bbl). 


(3) One thousand barrels is equal to 1 mbbl, and one thousand boe is equal to 1
mboe. One million cubic feet of natural gas is equal to 1 mmcf. 


(4) Includes non-associated gas, associated gas and solution gas. 

(5) Numbers in this table are subject to rounding error.

Summary of Net Present Values of Future Net Revenue(1),(2),(3),(4),(5)

British Columbia Assets

Forecast Prices and Costs ($ millions)

Before Income Taxes



----------------------------------------------------------------------------
                                               As at December 31, 2011      
                                              0%     5%     8%    10%    15%
----------------------------------------------------------------------------
Proved                                                                      
  Developed producing                        132    100     87     80     68
  Developed non-producing                     47     32     26     24     19
  Undeveloped                                376    216    162    135     89
----------------------------------------------------------------------------
Total proved                                 556    348    275    239    175
Probable                                   2,545  1,198    824    657    396
----------------------------------------------------------------------------
Total proved plus probable                 3,101  1,546  1,100    897    571
----------------------------------------------------------------------------



Notes:

(1) Painted Pony's total working interest reserves are before royalties owned by
others. The estimated future net revenues are stated before deducting income
taxes and future estimated site restoration costs and are reduced for estimated
future abandonment costs, the Saskatchewan Capital Tax and estimated capital for
future development associated with the reserves. 


(2) It should not be assumed that the undiscounted and discounted net present
values represent the fair market value of the reserves. 


(3) The price deck used for the evaluation as at December 31, 2011 was the GLJ
price deck dated January 1, 2012. 


(4) Numbers in this table are subject to rounding error.

METHOD OF PREPARATION

In this press release "working interest" reserves are calculated as the
Company's share of reserves, excluding royalty interest reserves and before the
deduction of royalty burdens payable. The reserve report was prepared utilizing
definitions as set out under NI 51-101- Standards of Disclosure for Oil and Gas
Activities ("NI 51-101").


UNDEVELOPED LAND 

At December 31, 2011, the Company's undeveloped lands in Saskatchewan, British
Columbia and Alberta were valued at $179.8 million. The land valuation was
prepared by Seaton-Jordan & Associates Ltd. in accordance with NI 51-101.


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. In addition, and without limiting the generality of the foregoing,
the key assumptions underlying the forward-looking statements contained herein
include the following: (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. The reader is cautioned that certain or all of
the forgoing assumptions may prove to be incorrect.


Certain information regarding Painted Pony set forth in this document, including
estimates of the Company's reserves, estimates of future net revenue from the
Company's reserves, pricing, inflation and exchange rates and future development
costs 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.


Special Note Regarding Disclosure of Reserves or Resources

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. Given the value ratio based on the current price of
crude oil as compared to natural gas is significantly different from the energy
equivalency of 6 Mcf: 1 bbl, utilizing a conversion ratio at 6 Mcf: 1 bbl may be
misleading as an indication of value. Estimates of reserves for individual
properties may not reflect the same confidence level as estimates of reserves
for all properties due to the effects of aggregation.


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