Painted Pony Petroleum Ltd.
TSX VENTURE : PPY.A
TSX VENTURE : PPY.B

Painted Pony Petroleum Ltd.

October 08, 2008 16:21 ET

Painted Pony Announces $9.5 Million Increase in Credit Facility

CALGARY, ALBERTA--(Marketwire - Oct. 8, 2008) - Painted Pony Petroleum Ltd. (TSX VENTURE:PPY.A) (TSX VENTURE:PPY.B) ("Painted Pony" or the "Company") is pleased to report that its revolving credit facility has increased by $9.5 million to a $17.0 million demand revolving operating credit facility and the $5.0 million demand non-revolving acquisition/development facility with a Canadian chartered bank. The credit facility is subject to an interim review date of January 31, 2009 and an annual review on or before May 31, 2009. Currently, Painted Pony has no funds drawn under either credit facility.

The conditions are unchanged, and include interest payable at the lender's prime rate plus one quarter percent (0.25%) on the demand revolving facility and at the lender's prime rate plus one half percent (0.50%) on the demand non-revolving facility. Security is provided by a first fixed and floating charge demand debenture of $50.0 million. Painted Pony has provided a negative pledge and undertaking to provide fixed charges over major petroleum and natural gas reserves in certain circumstances. A standby fee is charged on one-eighth of one percent (0.125%) on the undrawn portion of the credit facilities.

As previously announced, as at June 30, 2008 Painted Pony had a positive net working capital position of $32.3 million.

Advisory

Additional information 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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Painted Pony Petroleum Ltd.
    Patrick R. Ward
    President & CEO
    (403) 475-0440
    or
    Painted Pony Petroleum Ltd.
    Joan E. Dunne
    Vice President, Finance & CFO
    (403) 475-0440
    or
    Painted Pony Petroleum Ltd.
    300, 602 - 12 Ave SW
    Calgary, Ab T2R 1J3
    (403) 238-1487 (FAX)
    Website: www.paintedpony.ca