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CALGARY, ALBERTA -- (Marketwire) -- 03/21/13 -- Painted Pony Petroleum Ltd. ("Painted Pony" or the "Company") (TSX VENTURE: PPY) is pleased to report that it will be filing its annual financial statements and related Management's Discussion and Analysis for the year ended December 31, 2012 on SEDAR today. The statements and related Management's Discussion and Analysis will be available for review at www.sedar.com or www.paintedpony.ca.

Fourth Quarter 2012 Highlights:

Highlights from the fourth quarter of 2012 include:

--  achieved a new quarterly total production record with daily production    growing to average 7,289 barrels of oil equivalent ("boe") per day    ("boe/d") (76% gas), an increase of 15% compared to the third quarter.    Field production for the first two months of 2013 is estimated at 8,200    boe/d (78% gas);--  produced 33.4 million cubic feet ("mmcf") per day ("mmcf/d") of gas,    representing growth of 14% over third quarter 2012 and 58% over fourth    quarter 2011;--  generated funds flow from operations of $12.4 million, an increase of    46% over third quarter 2012. Cash flow from operations in the fourth    quarter of 2012 was $12.3 million;--  grew funds flow from operations per basic and diluted share to $0.17, an    increase of 42% over third quarter 2012;--  enjoyed overall average netbacks of $21.21 per boe, after royalties of    $2.19 per boe and operating and transportation costs of $10.53 per boe;--  netbacks for British Columbia were $13.32 per boe (approx. $2.22 per    thousand cubic feet equivalent ("mcfe")) after royalties of $0.21 per    boe (approx. $0.04 per mcfe) and operating and transportation costs of    $7.35 per boe (approx. $1.22 per mcfe). Netbacks for Saskatchewan were    $47.54 per boe after royalties of $8.80 per boe and operating and    transportation costs of $21.15 per boe;--  spent a total of $156.8 million on capital programs, including $109.3    million on property acquisitions and $1.9 million of non-cash costs; and--  drilled 10 (8.4 net) wells, of which 4 (3.2 net) wells were in British    Columbia, 4 (3.2 net) wells were in Saskatchewan and 2 (2.0 net) wells    were in Alberta.

--  achieved a 2012 proved plus probable recycle ratio of 1.9 times,    including future development costs, excluding the Kobes (Townsend)    acquisition, based on the fourth quarter 2012 netback of $21.21/boe;--  increased total proved plus probable reserves by 40% to 191 million boe    ("mmboe") (88% gas) and proved reserves by 37% to 43 mmboe (85% gas).    Proved reserves represent 22% of proved plus probable reserves as at    December 31, 2012;--  replaced 2012 production by 23.5 times on a proved plus probable basis;--  realized a year end proved plus probable reserve life index ("RLI") of    71.3 years and a proved    RLI of 16.0 years;--  a best estimate of contingent resources for the Company's Montney asset    of 3.15 trillion cubic feet of gas equivalent ("Tcfe") (equating to 525    mmboe), with a net present value discounted at 10% of $1.45 billion;--  grew production 56% to average 6,589 boe/d compared to 2011. Sales were    weighted 77% to gas in 2012 compared to 62% in 2011;--  grew production per weighted average share by 34%;--  averaged gas sales of 30.2 mmcf/d, an increase of 94% over 2011;--  reduced per boe net general and administrative costs by 19% from $2.58    in 2011 to $2.09 in 2012;--  increased the Company's net acreage to 286,874 net acres, of which    Montney holdings grew by 30% to 187 net sections (currently,    approximately 121,900 net acres or 190 net sections);--  generated funds flow from operations of $39.3 million ($0.56 per basic    and $0.55 per diluted share). Cash flow from operations was $39.7    million;--  raised $172.5 million before costs, in a bought-deal equity financing;--  exited 2012 with no debt. The Company had a positive working capital    position of $45.2 million and an undrawn demand credit facility of $100    million;--  enjoyed overall average netbacks of $18.46 per boe, on sales prices    averaging $30.80 per boe, after royalties of $2.49 per boe and operating    and transportation costs of $9.85 per boe;--  spent a total of $241 million on capital programs, including $115    million on property acquisitions and $7.6 million of non-cash costs; and--  drilled 34 (26.4 net) wells, of which 10 (6.6 net) wells were in British    Columbia, 21 (16.8 net) wells were in Saskatchewan and 3 (3.0 net) wells    were in Alberta.