Arsenal Energy Inc.

Arsenal Energy Inc.

October 11, 2005 08:00 ET

Arsenal Completes Second Successful Evi Well; Swab Rate 295 Bbl/D

CALGARY, ALBERTA--(CCNMatthews - Oct. 11, 2005) -

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Arsenal Energy Inc. (TSX:AEI) (FWB:A1E) ("Arsenal") is pleased to announce it has drilled and completed its second operated well at Evi in North Central Alberta. During completion the well swab tested at a rate of 295 bbls/day of light oil (37 degree API). Water was recovered during the swabbing operation (5% water cut). Arsenal is unsure of whether the recovered water is formation water or drilling fluid pending the results of a water analysis. Arsenal will be applying to the Alberta Utilities and Energy Board for GPP (Good Production Practice) to increase the MRL (maximum rate limit) for this well.

This second successful well comes directly after the successful completion of the first well drilled at Evi (news release dated September 29, 2005). Arsenal will operate both Evi wells which carry an undivided 50% operated working interest before payout. Upon reaching payout (deemed to be approximately 43,000 gross barrels of oil production per well), Arsenal may have its interest reduced to 30% operated working interest in each well. Arsenal will be shooting a three square mile 3D seismic program in the immediate area during December 2005 to secure further drilling locations.

Arsenal is drilling two more similar geological plays at Mitsue and at Lubicon in northern Alberta. The drill locations are targeting light oil from the Granite Wash or Gilwood formations. Arsenal carries a 50% working interest in both wells; operating the Mitsue well and not operating the Lubicon well.

Certain statements in this material may be "forward-looking statements" including outlook on oil and gas prices, estimates of future production, estimated completion dates of acquisitions and construction and development projects, business plans for drilling and exploration, estimated amount and timing of capital expenditures and anticipated future debt levels and royalty rates. Information concerning reserves contained in this material may also be deemed forward-looking statements as such estimates involve the implied assessment that the resources described can be profitably produced in the future. These statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated by Arsenal.

The TSX Exchange does not accept responsibility for the adequacy or accuracy of this release.

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