Arsenal Energy Inc.

Arsenal Energy Inc.

June 01, 2006 19:49 ET

Arsenal Energy Announces that the Tower Creek Well has Reached Total Depth

CALGARY, ALBERTA--(CCNMatthews - June 1, 2006) -

Not for distribution to the United States newswire services or for dissemination in the United States.

Arsenal Energy Inc. (TSX:AEI) (FWB:A1E)is pleased to announce that its Tower Creek 2-21-55-27 W5M exploration well has reached a final drilling depth of 4895 meters, substantially ahead of schedule and under budget. The well bore has encountered a significant Leduc reef buildup 190 meters above the Lower Leduc platform. An open hole section of 95 meters of reef exhibiting hydrocarbon shows and reservoir quality porosity has been exposed below a liner set into the top of the reef at 4800 meters. Production testing of this section will commence within the next few weeks once production tubing is run and approvals are in place. Further information regarding production capacity and potential gas reserves based upon an independent engineering evaluation will be announced as data becomes available. Arsenal has a 14% after earned working interest in this well.

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