Arsenal Energy Inc. ("Arsenal") (TSX:AEI) is pleased to release the flow test
results of the Amy Elizabeth Bakken well at Stanley, North Dakota. The well has
been completed and stimulated with a 22 stage frack. Over a 24 hour test period
the well flowed at a rate of 1,162 bbls/d of 45 API crude on a 1/2 inch choke
with a flowing pressure of 720 psi. Arsenal operates the Amy Elizabeth well and
participated for a 62% WI. The Amy Elizabeth is equipped for flowing production
and has commenced sales.


Arsenal has started permitting three additional North Dakota Bakken operated
drills, the Gjoa Lynn (50% WI), the Anthony Robert (80 % WI), and the Wade
Morris (80% WI). It is anticipated that Arsenal will start drilling this 3 well
program in October.


Arsenal is a junior oil and gas company engaged in the exploration for, and
development and production of, natural gas and oil reserves primarily in Alberta
and North Dakota, U.S.A. Arsenal's common shares trade on the Toronto Stock
Exchange under the symbol "AEI".


To receive Arsenal press releases, 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).