Painted Pony Petroleum Ltd.
Suite 1800, 736 – 6th Avenue SW, Calgary, Alberta, Canada

Painted Pony Petroleum Ltd. is a growth-oriented Canadian public natural gas producer, operating in the Montney formation in Northeast British Columbia.

Painted Pony’s philosophy is to grow through production development drilling for natural gas and natural gas liquids. The Company’s strategic objective is to provide shareholders with an impressive and consistent per share growth profile of production, reserves and cash flow through the development of its premium, sweet natural gas resource base located in the optimum area.

The Company is headquartered in Calgary, Alberta and is listed in the Toronto Stock Exchange under the trading symbol “PPY”.

Painted Pony is focused on the development of natural gas and natural gas liquids production from the Montney resource play in northeastern British Columbia, Canada. The Montney is one of North America’s premier natural gas resource plays, larger in scope and with similar future potential as the Marcellus play of the northeastern United States.

The Montney formation exceeds 300 meters (approximately 1,000 feet) in total thickness over Painted Pony lands. It is a highly over-pressured reservoir, leading to an internally estimated volume of more than 250 billion cubic feet of original gas-in-place per square mile. These large gas volumes provide Painted Pony with the opportunity to economically develop up to five independent layers within the Montney zone and up to four wells per layer over its 216 net sections. The Company’s high working interest, contiguous land block covers over 139,000 net acres of Montney rights.

Painted Pony’s Montney gas is ideally suited for LNG (Liquefied Natural Gas) exports, being free of H2S with high heat content and no associated water production. In addition, the Company’s properties are positioned in close proximity to current and planned gas processing and pipeline infrastructure to both North American domestic markets and future LNG projects, allowing the Company to show strong, consistent production growth since 2007. In addition, Painted Pony has entered into a 15-year strategic alliance with AltaGas Ltd., which provides for additional natural gas processing, marketing and egress solutions.

The Company’s five-year model for Montney development calls for the drilling of more than 198 wells, culminating in net production volumes of 600 million cubic feet per day (100,000 boe/d) during 2019. Painted Pony maintains a conservative balance sheet, which provides the Company with excellent flexibility in responding to changing industry conditions and commodity price fluctuations.