Painted Pony Closes $20.8 Million NE BC Acquisition

Painted Pony Petroleum Ltd. has closed the acquisition previously announced on March 18, 2008 of certain natural gas properties focused in the multi-zone gas-prone Cameron River/ Blair fairway in northeast British Columbia from Crescent Point Energy Trust.

The consideration given for the acquisition was 4,110,000 Class A Shares of Painted Pony issued to Crescent Point at a deemed price of $4.33 per share and approximately $3.0 million cash, for a total purchase price of $20.8 million, before closing adjustments and related costs.

The Assets are located in the Company's northeast British Columbia core area, where Painted Pony has access to 1,200 km2 of three dimensional seismic through an area of mutual interest agreement. Painted Pony will continue to evaluate the acquisition asset base for potential exploration, development and exploitation opportunities.

Current production from the acquired properties is estimated to be approximately 450 Boe/d, consisting of 20 Bbls/d of natural gas liquids and 2,580 Mcf/d of natural gas, based on field estimates. The Assets include 73,339 net acres of undeveloped lands. A significant portion of the Assets will be operated by Painted Pony.

In connection with the acquisition of the Assets, Painted Pony had a reserve report prepared in accordance with National Instrument 51-101. At December 31, 2007, Sproule Associates Limited ("Sproule"), estimated the proved reserves for the Assets to be 993.0 Mboe and the proved and probable reserves to be 1,572.6 Mboe. At a 10% discount rate, the estimated net present value before income taxes of the proved and probable oil and gas reserves for the assets was estimated as at December 31, 2007, using Sproule's Forecast Prices, to be $16.777 Million. A sensitivity run done using Sproule's February 29, 2008 Forecast Prices indicated at a 10% discount rate, the estimated net present value before income taxes of the proved and probable oil and gas reserves for the assets was estimated to be $18.763 Million. The net present values of future net revenue do not represent fair market value.

Reserve acquisition costs on a proven plus probable basis, before future capital and transaction costs, are approximately $13.22 per boe. With an allocation of $4.0 million to the 73,339 net acres of undeveloped land, the net acquisition cost of the reserves, before future capital and transaction costs, equates to approximately $16.92 per proved boe and $10.68 per proved and probable boe.


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