Mr. Patrick Ward reports

Painted Pony Petroleum Ltd. has provided the following operational update.

Painted Pony's production for September, 2009 (based on field estimates), averaged 1,800 barrels of oil equivalent per day, a 37-per-cent increase from second quarter 2009 sales of 1,313 boe/d. Crude oil production averaged 1,230 barrels per day in September, 2009, compared with the second quarter average rate of 543 bbl/d. Natural gas volumes averaged 545 boe/d in September compared with second quarter average sales of 733 boe/d; the decline was due to the previously reported voluntary shutting in of lower-netback gas wells in the Cypress area, and to stabilization of rates following the flush production from the successful first quarter drilling and recompletion program. In the first week of October, 2009, the company has experienced a temporary reduction of approximately a quarter of the daily oil sales volumes due to excessively wet surface conditions.

Painted Pony carried out an active third quarter horizontal Bakken development drilling program with the drilling of seven (6.3 net) wells. Six of these oil wells (six net) have been placed on production. In the first three quarters of 2009, Painted Pony has participated in the drilling of 11 (10.3 net) horizontal Bakken oil wells and one (0.5 net) conventional gas well. In addition, during the third quarter of 2009, the company closed four acquisitions of undeveloped land and Bakken production at a cost of $14-million (before adjustments), primarily in the company's core Midale/Huntoon area.

During the last quarter of this year, the company expects to drill an additional seven (4.3 net) wells targeting the Bakken formation. With over 100 net development locations, the company has a multiyear inventory of development drilling locations for Bakken oil.

In the third quarter of 2009, operations resumed in northeast British Columbia under two farm-out agreements. On the Cameron lands, a second vertical well targeting the Montney formation which commenced drilling on July 29, 2009, is currently waiting on completion. A third well targeting the Montney formation committed to under the terms of the farm-out agreement on the Cameron lands is expected to be drilled in the fourth quarter of 2009.

In preparation for the 2010 drilling program on the company's two natural gas resource plays, Painted Pony is in the process of licensing three potential Montney locations at Blair. The company is also evaluating the economics of air drilling a well targeting the Buckinghorse shale gas formation.

Painted Pony's emphasis on conservative fiscal management continues, with the credit facilities of $29-million undrawn.

Painted Pony will be undertaking a series of presentations to interested parties over the next couple of weeks in various cities in Canada and the United States.

Interested parties are invited to visit the company's website on Friday, Oct. 9, 2009, to view an updated presentation dated Oct. 1, 2009.