PPY.B Painted Pony Petroleum Ltd

Painted Pony Petroleum Ltd. ("Painted Pony" or the "Company") (TSX
VENTURE:PPY.A) (TSX VENTURE:PPY.B) is pleased to report the progress made during
the first three months of 2008. The accomplishments in the first quarter of 2008
of our aggressive exploration and development program include:


- Drilled 11 gross (3.74 net) horizontal operated wells targeting the Bakken
formation in Saskatchewan at a 100% success rate and one (1.0 net) step-out
stratigraphic exploration well in a new area. To date, Painted Pony has drilled
a total of 19 (7.35 net) horizontal operated wells targeting the Bakken
formation,


- Acquired access to additional potential Bakken-bearing lands with two farm-in
agreements,


- Enjoyed field netbacks of $69.60 per bbl,

- Completed a strategic production and land acquisition in our core NE BC area, and

- Established credit facilities totaling $12.5 million.

During the first quarter of 2008, Painted Pony continued to earn lands and
delineate the Bakken zone potential on our lands in south east Saskatchewan.
With the completion of spring break-up, second quarter drilling has re-commenced
with the drilling of a water disposal well and 3 (1.7 net) horizontal wells,
including an exploratory well on a potential new Bakken trend. We are currently
drilling three (1.1 net) additional wells.


Painted Pony is actively accumulating land in Saskatchewan through earning by
drilling wells, participating in crown land sales and leasing freehold lands.
The Company currently owns approximately 22,600 net acres, of which 3% is
developed. In total, Painted Pony has, through various farm-in agreements plus
owned lands, access to approximately 82,500 net acres of land prospective for
light oil in the Bakken and other formations. The Company believes these lands
contain approximately 200 Company-mapped horizontal drilling locations targeting
the Bakken formation for light sweet oil, plus a number of locations for other
light oil reservoirs within S.E. Saskatchewan.


In March 2008, Painted Pony announced and closed a strategic acquisition of
natural gas-weighted production and lands in the Company's core N.E. British
Columbia area, where the Company has access to 1,200 km2 of three dimensional
seismic through an area of mutual interest agreement. Currently, the Company
owns 86,000 net acres of developed and undeveloped lands in this area.


Preliminary evaluation of these lands has identified prospects targeting the
Bluesky, Gething, Cadomin, Halfway, and Montney zones, plus shale gas potential.
The application of multi-stage fracture stimulation technology to these zones is
expected to unlock their tight gas potential. Painted Pony is currently planning
an exploration and development program for this high impact gas-prone area.


In March 2008, the Company established bank lines totaling $12.5 million. At the
end of March 2008, the Company had a positive net working capital position of
$4.7 million and no bank indebtedness. On April 30, 2008, Painted Pony issued
8,800,000 Class A shares at $4.35 per share in a bought deal private placement
equity financing, raising gross proceeds of $38.28 million. These funds will be
used for general corporate purposes and the capital program.


Outlook

Since the completion of the initial public financing on May 17, 2007, followed
by the commencement of trading on the TSX Venture Exchange on May 23, 2007,
Painted Pony has passed many milestones. In one year, the Company has built a
significant land position in both SE Saskatchewan and NE BC and generated a
multi-year drilling inventory of potential Bakken zone locations. Production in
the month of April 2008 averaged approximately 775 boe/d, of which 315 bbls/d is
light oil from Saskatchewan, and 460 boe/d (weighted 95% gas and 5% NGL's) is
from British Columbia.


Readers are invited to visit the Company's updated presentation on our website
at www. paintedpony.ca.


Painted Pony is pleased to announce it will be presenting at the SEPAC Junior
Oil & Gas Investor Showcase conference today at 1:40 PM (MTN) at the Westin
Calgary Hotel, Calgary AB. The presentation will be subsequently available on
the SEPAC website at www.sepac.ca and on our website.




Financial and Operational Summary
(unaudited)
----------------------------------------------------------------------------
                                                         Three months ended
                                                             March 31, 2008
----------------------------------------------------------------------------
FINANCIAL

Revenue (before transportation, interest and other)            $  1,354,759
Funds flow from operations (1)                                 $  1,073,860
 Per share - basic and diluted                                 $      0 .06
Net earnings                                                   $  3,345,551
 Per share - basic and diluted                                 $       0.19
Capital expenditures, net                                      $ 30,586,484
Net working capital                                            $  4,686,036
Total assets                                                   $ 58,660,444
Shares outstanding
 Basic - Class A                                                 19,392,700
 Basic - Class B                                                  1,173,600
Weighted average shares
 Basic - Class A                                                 15,327,865
 Basic - Class B                                                  1,173,600
 Basic Class A after deemed conversion of Class B                17,989,761

OPERATIONAL
Volumes
 Oil sales - daily                                    (bbls/d)          148
Oil sales prices (before transportation)               ($/bbl)       100.50
Field operating netback                                ($/bbl)        69.60
Horizontal Saskatchewan wells drilled
 Gross                                                                   11
 Net                                                                   3.74
 Net success rate (%)                                                   100
----------------------------------------------------------------------------

(1) This table contains the term funds flow from operations, which should
    not be considered an alternative to, or more meaningful than cash flow
    from operating activities as determined in accordance with Canadian
    generally accepted accounting principles ("GAAP") as an indicator of the
    Company's performance. Therefore reference to funds flow from operations
    or funds flow from operations per share (basic and diluted) may not be
    comparable with the calculation of similar measures for other entities.
    Management uses funds flow from operations to analyze operating
    performance and leverage and considers funds flow from operations to be
    a key measure as it demonstrates the Company's ability to generate the
    cash necessary to fund future capital investment. The reconciliation
    between, funds flow from operations and funds flow from operating
    activities can be found in Management's Discussion and Analysis. Funds
    flow from operations per share is calculated using the basic and diluted
    weighted average number of shares for the period after the deemed
    conversion of the Class B shares to Class A shares.

(2) The deemed conversion of Class B shares to Class A was calculated
    utilizing a deemed Current Trading Price of $4.41, the weighted average
    trading price per share of Class A shares for the last 30 consecutive
    trading days. Class B shares are convertible into Class A shares by the
    formula whereby the weighted number of Class B shares are multiplied by
    the factor determined by dividing the last 30-day weighted average
    trading price of Class A shares.



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.

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