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Press release from Marketwire

Painted Pony Provides Operational Update and Announces Notification of Live Webcast Event

Monday, November 12, 2012

Painted Pony Provides Operational Update and Announces Notification of Live Webcast Event08:30 EST Monday, November 12, 2012CALGARY, ALBERTA--(Marketwire - Nov. 12, 2012) -NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESPainted Pony Petroleum Ltd. ("Painted Pony" or the "Company") (TSX VENTURE:PPY) is pleased to provide the following operations update and announces that it will be presenting at the FirstEnergy/Societe Generale Energy Growth Conference in Toronto, Ontario. OPERATIONS ACTIVITY :During the third quarter of 2012, Painted Pony completed drilling operations on 12 (8.2 net) wells, including 2 (1.2 net) wells on its Montney gas project in northeastern British Columbia and 10 (7.0 net) wells on the Company's light oil projects in southeastern Saskatchewan. To date in the fourth quarter, the Company has completed drilling a further 2 (2.0 net) wells.In northeastern British Columbia, Painted Pony has commenced completion and extended production testing on 2 new 100% working interest Montney wells located on the Blair/Town c-11-F/94-B-16 pad. Test results from these operations are expected to become available prior to year-end. Elsewhere at Blair, the Company has spudded the first of two 100% working interest Montney wells on the a-62-F/94-B-16 pad. Both of these wells are expected to finish drilling prior to year-end and are currently scheduled to be completed and production tested during the first quarter of 2013. The Company also expects to participate in the drilling of 1 (0.2 net) well in the Cameron area prior to year-end 2012. In southeastern Saskatchewan, Painted Pony continues to focus on development drilling of its Bakken light oil projects, principally at Flat Lake. During the third quarter of 2012, 5 (3.6 net) new wells have been drilled at Flat Lake, of which 4 (2.6 net) have been completed and placed on production to-date. In the fourth quarter of 2012, 3 (2.3 net) additional wells are expected to be drilled and completed at Flat Lake.In Alberta, Painted Pony has commenced drilling its second 100% working interest exploratory well at Wimborne, Alberta, targeting a new Viking light oil play. This location represents the first earning well on the Company's second area farmin agreement. Results are expected by year-end 2012. A third Viking exploratory well (100% working interest), situated on a new play in the Corbett area, is also scheduled to be drilled in late November 2012. PRODUCTION :Painted Pony's field-estimated sales volumes during the third quarter averaged approximately 6,300 boe/d, weighted 77% to gas. During the month of October 2012, the Company's field-estimated production averaged approximately 7,000 boe/d, weighted 75% to gas. The Company expects its British Columbia sales gas volumes to remain essentially flat at approximately 30 MMcfpd (5,000 boe/d) for the last two months of 2012. In January 2013, the Company forecasts an additional 9 MMcfpd (1,500 boe/d) to come onstream from recent drilling operations in British Columbia once current operational constraints at the non-operated third party Blair gas processing facility have been resolved. WEBCAST EVENT :Painted Pony will be presenting at the FirstEnergy/Societe Generale Energy Growth Conference in Toronto, Ontario on Tuesday, November 13, 2012, at 1:00 PM EST (11:00 AM MST). To listen to and view this online event, please visit http://jetslides.tv/lobby/815. The webcast event will be available in an archived format at this link for up to 60 days following the live presentation. For more information concerning the webcast, please visit www.firstenergy.com. Painted Pony will be undertaking a series of presentations to interested parties over the next week in various cities across Canada and the United States. Interested parties are also invited to view an updated corporate presentation on the Company's website at www.paintedpony.ca beginning on November 12, 2012.Painted Pony Petroleum Ltd. was recognized as a TSX Venture 50® 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 and proposed drilling programs; (ii) production; (iii) future capital expenditures; and (iv) cash flows 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, 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 2011;(v) operational constraints at the Blair gas processing facility will be resolved; (vi) Painted Pony will have sufficient financial resources with which to conduct the capital program; and (vii) 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 its future plans and operations, the planning and development of certain prospects, production estimates and liquid recovery estimates, 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 Crude Oil and Natural Gas VolumesBOEs 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.FOR FURTHER INFORMATION PLEASE CONTACT: Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. Contact Information: Painted Pony Petroleum Ltd.Patrick R. WardPresident & CEO(403) 475-0440(403) 238-1487 (FAX)Painted Pony Petroleum Ltd.Joan E. DunneVice President, Finance & CFO(403) 475-0440(403) 238-1487 (FAX)Painted Pony Petroleum Ltd.300, 602 - 12 Ave SWCalgary, AB T2R 1J3www.paintedpony.ca