investors

Painted Pony announces closing of a $10.0 million bought deal private placement of Class A shares

12/06/2007

December 6, 2007 -Calgary, Alberta – NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

Painted Pony Petroleum Ltd. (“Painted Pony”) (TSX VENTURE:PPY.A) (TSX VENTURE:PPY.B) is please to announce the closing of an equity financing arrangement entered into with a syndicate of underwriters led by Blackmont Capital Inc. and including FirstEnergy Capital Corp., Westwind Partners Inc. and Cormark Securities Inc. on a bought deal basis (the “Offering”).

A total of 4,166,700 class A common shares (the “Class A Shares”) were sold through the Offering at a price of $2.40 per Class A Share raising gross proceeds of $10,000,080.

Proceeds of the Offering will be used to further the capital program or for general corporate purposes.

The securities issued pursuant to the Offering are subject to a four-month hold period expiring April 7, 2008 in accordance with applicable securities laws.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction. The common shares may be offered or sold in other eligible foreign jurisdictions and to U.S. buyers on a private placement basis pursuant to an applicable exemption from registration requirements in Rule 144-A or Regulation D of the United States Securities Act of 1933, as amended.

This press release may contain statements within the meaning of safe harbour provisions as defined under Securities Laws and Regulations. The above statements are based on the current expectations and beliefs of Painted Pony’s management and are subject to a number of risks and uncertainties that may cause the actual results to differ materially from those described above. Painted Pony does not undertake any responsibility with regard to the accuracy of this press release nor the obligation to update the abovementioned information.

This press release contains certain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties andother factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Corporation cannot assure that actual results will be consistent with these forward looking statements. They are made as of the date hereof and are subject to change and the Corporation assumes no obligation to revise or update them to reflect new circumstances, except as required by law. Prospective investors should not place undue reliance on forward looking statements. These factors include the inherent risks involved in the exploration for and development of crude oil and natural gas properties, the uncertainties involved in interpreting drilling results and other geological and geophysical data, fluctuating energy prices, the possibility of cost overruns or unanticipated costs or delays and other uncertainties associated with the oil and gas industry. Other risk factors could include risks associated with negotiating with foreign governments as well as country risk associated with conducting international activities, and other factors, many of which are beyond the control of the Corporation. A barrel of oil equivalent (boe) is derived by converting gas to oil in the ratio of six thousand cubic feet of gas to oil and may be misleading, particularly if used in isolation. A boe conversion is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead, especially in various international jurisdictions.

Painted Pony trades on the TSX Venture Exchange under the symbols “PPY.A” and “PPY.B” respectively. For further information, please see www.paintedpony.ca or contact:

Patrick R. Ward, President & CEO
Joan E. Dunne, Vice President, Finance & CFO

PAINTED PONY PETROLEUM LTD. 402, 620 – 12 Ave SW Calgary, Ab T2R0H5
Phone: (403) 475-0440 Fax: (403) 238-1487

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

Emergency Phone: 1-888-775-0440

PAINTED PONY ENERGY LTD.

1200, 520 3 Avenue SW Calgary, Alberta T2P 0R3 P: 403 475-0440 F: 403 238-1487 TF: 1-866-975-0440 E: info@paintedpony.ca

Whistleblower Hotline

24-HOUR EMERGENCY CONTACT

Call 1-888-775-0440 to report concerns regarding any of Painted Pony’s field operations. This is for EMERGENCIES ONLY and does not connect to Painted Pony’s head office.

PAINTED PONY ENERGY LTD.

1200, 520 3 Avenue SW Calgary, Alberta T2P 0R3 P: 403 475-0440 F: 403 238-1487 TF: 1-866-975-0440 E: info@paintedpony.ca