Arsenal Energy Inc. (fka AEYIF)

[Captain Black Bob Blanco]

ARSENAL ENERGY INC. ANNOUNCES 2011 FOURTH QUARTER AND YEAR END RESULTS


Arsenal is pleased to release its Q4 and full year 2011 financial and operating results.



- Q4 2011 results are highlighted by a 67% increase in cash flow compared to Q4 2010.

- Q4 2011 production of 2,899 boe/d is a 36% improvement over the same period in 2010.

- Q4 2011, Arsenal announced the closing of a strategic acquisition of oil and gas properties in its core oil producing areas of Alberta adding approximately 1,500 Boe/d.

- US production increased in 2011 from 671 boe/d in Q1 2011 to 1,077 boe/d in Q4 2011, due largely to the drilling of Company operated North Dakota Bakken wells at Stanley.

- High working interest (80%) North Dakota Bakken well currently drilling. Second North Dakota Bakken well (80%) to spud before month end.