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

Painted Pony Petroleum Ltd.

March 06, 2008 17:16 ET

Painted Pony Announces Land Acquisition in Bakken Light Oil Play and Operational Update

CALGARY, ALBERTA--(Marketwire - March 6, 2008) - Painted Pony Petroleum Ltd. ("Painted Pony" or the "Company") (TSX VENTURE:PPY.A) (TSX VENTURE:PPY.B) is pleased to announce an operational update and increased exposure to potential Bakken light oil plays.

Painted Pony has expanded its exposure to the Bakken light oil play by executing a new farm-in agreement allowing access to 20.75 gross (17.0 net) sections (10,907 net acres) in the North Midale, Saskatchewan area. Under the terms of the agreement, Painted Pony will pay 100%, to earn 100%, in the lands subject to a gross overriding royalty. The Company has committed to drill two wells on the farmin lands. The Company also acquired an additional 10.25 gross (9.88 net) sections (6,323 net acres) in the Kisbey and other Bakken light oil exploration areas.

Painted Pony estimates a drilling inventory of over 200 potential drilling locations for Bakken oil within the approximately 76,000 net acres it owns or has access to within South East Saskatchewan.

Painted Pony commenced an active operated exploration and development program in May 2007, targeting light, sweet oil in the Bakken formation in SE Saskatchewan. To date, Painted Pony has drilled a total of 14 (5.0 net) successful Bakken horizontal wells. Currently 8 (2.7 net) Bakken formation wells are producing and an additional 4 (1.3 net) wells are expected to be on production before the end of the first quarter of 2008. Production field estimates for the last week of February 2007 averaged 237 bbls/d net to Painted Pony, from 2.7 net Bakken formation wells. The Company is currently drilling an additional 2 (0.66 net) Bakken horizontal wells.

Painted Pony trades on the TSX Venture Exchange under the symbols "PPY.A" and "PPY.B" respectively.

Advisory

This news release contains certain forward-looking statements, which include assumptions with respect to (I) drilling success (ii) production; (iii) future capital expenditures; and (iv) cash flow. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect.

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 plan 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, the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, environmental risks, competition, the lack of availability of qualified personnel or management, 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, stock market volatility, 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, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. 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 Corporation will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to the Corporation 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.

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.
    402, 620 - 12 Ave SW
    Calgary, AB T2R 0H5
    (403) 475-0440
    (403) 238-1487 (FAX)
    Website: www.paintedpony.ca