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Painted Pony Petroleum released their financial results for the three months ending June 30, and provided an operational update. During the second quarter of 2011, Painted Pony's operating and financial highlights include that the total proved plus probable reserves grew to 85.6 mmboe, up 163 per cent in six months, and had a NPV10 of $797.9 million, up 126 per cent in six months.

Production averaged 3,593 boe per day, weighted 60 per cent gas and 40 per cent oil and liquids, which is an increase of 42 per cent from the second quarter of 2010. Painted Pony exited the second quarter with no debt and a positive working capital position of $40.3 million and its credit facility was subsequently increased to $80 million.

The second quarter 2011 saw field netbacks of $66.48 per boe for oil-weighted assets in Saskatchewan. Second quarter production in Saskatchewan were adversely affected by extensive flooding, which caused production curtailments and significant delays to operational activity. In addition, a mid-stream gas processing facility experienced an unscheduled plant inlet disruption midway through the second quarter. Repairs to the facility are underway.

Sale volumes of solution gas and association liquids from the company's Midale Huntoon area are expected to resume in late September. As a result of these disruptions, Saskatchewan sales in the second quarter of 2011 averaged 1,422 boe per day. During recent weeks, the excessive wet surface conditions have improved in many areas of Saskatchewan, allowing Painted Pony to resume normal production operations.

Painted Pony's second quarter drilling program was also significantly impacted by the extended wet conditions in Saskatchewan. Consequently the forecast drilling schedule has been delayed by more than 10 weeks in comparison to prior years. Recent drying weather has permitted drilling to resume in some areas.

As of June 30, they had aggregated 21 net sections of land perspective for Bakken oil in the area. In the third quarter of 2011, Painted Pony has drilled one well in the area, with production testing over 200 boe per day. Painted Pony continues to pursue an active drilling program in Saskatchewan. To date in the third quarter, the company has drilled eight wells. In the second half of 2011, the company expects to drill a total of 28 wells in Saskatchewan.