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Press release from Marketwire

Arsenal Energy Inc. Completes Drilling Bakken, North Dakota Wells

Tuesday, May 01, 2012

Arsenal Energy Inc. Completes Drilling Bakken, North Dakota Wells16:40 EDT Tuesday, May 01, 2012CALGARY, ALBERTA--(Marketwire - May 1, 2012) -Arsenal Energy Inc. (TSX:AEI) (PINKSHEETS:AEYIF) At Stanley North Dakota, Arsenal as operator has completed drilling both the Anthony Robert and Wade Morris two mile horizontal Bakken wells. Each well encountered good shows while drilling. Arsenal has an approximate 84% working interest in each well. It is anticipated that both wells will be completed with multistage fracks and placed on production by the end of June.At Princess in Eastern Alberta, Arsenal has received approval from the Alberta Energy Board for waterflood of the Mannville Q pool. Water injection conversion and pipeline operations have begun. Arsenal anticipates that water injection will begin by the end of June and that waterflood response should become apparent within 6 months after that. Reservoir modeling indicates an incremental 470,000 bbls of reserves should be recoverable from the Q pool under waterflood. Arsenal has two additional Mannville pools of similar size at Princess that are in the application stage of the waterflood permitting process.To receive company news releases via e-mail, please advise info@arsenalenergy.com and specify "Arsenal Press Releases" in the subject line.Advisory Certain statements and information contained in this press release, including but not limited to management's assessment of Arsenal's future plans and operations, production, reserves, revenue, commodity prices, operating and administrative expenditures, funds from operations, capital expenditure programs and debt levels contain forward-looking statements. All statements other than statements of historical fact may be forward looking statements. These statements, by their nature, are subject to numerous risks and uncertainties, some of which are beyond Arsenal's control including the effect of general economic conditions, industry conditions, changes in regulatory and taxation regimes, volatility of commodity prices, escalation of operating and capital costs, currency fluctuations, the availability of services, imprecision of reserve estimates, geological, technical, drilling and processing problems, environmental risks, weather, the lack of availability of qualified personnel or management, stock market volatility, the ability to access sufficient capital from internal and external sources and competition from other industry participants for, among other things, capital, services, acquisitions of reserves, undeveloped lands and skilled personnel that may cause actual results or events to differ materially from those anticipated in the forward looking statements. Such forward-looking statements although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated in the statements made and should not unduly be relied on. These statements speak only as of the date of this press release. Arsenal does not intend and does not assume any obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Arsenal's business is subject to various risks that are discussed in its filings on the System for Electronic Document Analysis and Retrieval (SEDAR). In this press release where amounts are expressed on a barrel of oil equivalent ("boe") basis, natural gas volumes have been converted to oil equivalence at six thousand cubic feet per barrel. The term boe may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Estimates of future net revenue do not represent fair market values.FOR FURTHER INFORMATION PLEASE CONTACT: Tony van WinkoopArsenal Energy Inc.President and Chief Executive Officer(403) 262-4854(403)-265-6877 (FAX)ORJ. Paul LawrenceArsenal Energy Inc.Vice President, Finance and CFO(403) 262-4854(403)-265-6877 (FAX)OR1900, 639 - 5th Avenue S.W.Arsenal Energy Inc.Calgary, AlbertaT2P 0M9info@arsenalenergy.comwww.arsenalenergy.com