Painted Pony Announces $50 Million Bought Deal Equity Financing

CALGARY, ALBERTA -- (Marketwired - Nov. 12, 2014) - Painted Pony Petroleum Ltd. ("Painted Pony" or the "Corporation") (TSX:PPY) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Cormark Securities Inc. and including FirstEnergy Capital Corp., Canaccord Genuity Corp., RBC Capital Markets, TD Securities Inc., AltaCorp Capital Inc., CIBC World Markets Inc., Scotia Capital Inc. and National Bank Financial Inc. (collectively the "Underwriters") under which the Underwriters have agreed to purchase for resale to the public, on a bought deal basis, 4,170,000 common shares ("Common Shares") at $12.00 per Common Share (the "Offering Price") for aggregate gross proceeds of $50,040,000 (the "Offering").

Painted Pony has granted the Underwriters an option to purchase an additional 625,500 Common Shares exercisable at the Offering Price, in whole or in part at any time until 30 days after the date of closing of the Offering, for additional gross proceeds of up to $7,506,000, which would increase the Offering to aggregate gross proceeds of $57,546,000 if fully exercised.

The net proceeds of the Offering will be used to fund a portion of the Corporation's capital expenditure program and for other general corporate purposes.

The Common Shares shall be offered in all provinces of Canada (other than Quebec) by way of short form prospectus, and in the U.S. on a private placement basis pursuant to exemptions from registration requirements. The closing of the Offering is expected to occur on December 2, 2014 and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange.


ADVISORY

Forward-Looking Information:

This press release contains certain forward-looking information within the meaning of Canadian securities laws. Forward-looking information relates to future events or future performance and is based upon the Corporation's current internal expectations, estimates, projections, assumptions and beliefs. All information other than historical fact is forward-looking information. In particular, this press release contains forward-looking information relating to: the closing of the Offering and the use of proceeds of the Offering.

Undue reliance should not be placed on forward-looking information, as there can be no assurance that the plans, intentions or expectations on which they are based will occur. Although the Corporation's management believes that the expectations in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct.

Forward-looking information necessarily involves both known and unknown risks including risks associated with general economic conditions affecting the Corporation's ability to access sufficient capital. Additional information on risk factors that could affect operational or financial results are included in the Corporation's most recent Annual Information form and in other reports filed with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) or Painted Pony's website (www.paintedpony.ca).

Forward-looking information is based on estimates and opinions of management at the time the information is presented. The Corporation is not under any duty to update the forward-looking information after the date of this press release to revise such information to actual results or to changes in the Corporation's plans or expectations, except as required by applicable securities laws.


ABOUT PAINTED PONY:

Painted Pony is a publicly-traded natural gas company based in Western Canada. The Corporation is primarily focused on natural gas and natural gas liquids from the Montney formation in northeast British Columbia. Painted Pony's philosophy is to grow through exploration and development drilling and strategic acquisitions. Painted Pony's common shares trade on the Toronto Stock Exchange under the symbol "PPY".

For more information please visit www.paintedpony.ca.


NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES



CONTACT INFORMATION

Painted Pony Petroleum Ltd.
Patrick R. Ward, President & CEO
(403) 475-0440

John H. Van de Pol, Vice President, Finance & CFO
(403) 475-0440

Mark Polak, Director, Investor Relations
(403) 475-0440
www.paintedpony.ca