Arsenal Energy Inc.

Arsenal Energy Inc.

May 20, 2010 21:57 ET

CORRECTION FROM SOURCE: Arsenal Energy Inc. Announces Successful Three Forks Well at Lindahl, ND

CALGARY, ALBERTA--(Marketwire - May 20, 2010) - A correction from source is being issued in respect to the release that was sent on May 20, 2010 at 6:37 pm EST. The original release did not contain the Company's Advisory Statement. The corrected and complete release follows below.

Arsenal Energy Inc. ("Arsenal") (TSX:AEI) has completed a three well drilling program in North Dakota. The program resulted in one Three Forks horizontal at Lindahl (Strid 1-26H 34.14%WI) and two Bakken horizontals at Stanley (Burke 26-18H 13.99% WI & James Phillip 24-13H 35% WI).

At Lindahl, the Strid 1-26H well had an initial oil production rate of 1001 bbl/d (340 bbl/d net) with an associated 1.9 mmcf/d (646 mcf/d net) gas test rate.

At Stanley, the Burke 26-18H is being completed using multi-stage fracture technology and the James Phillip 24-13H well has been cased and is currently awaiting similar completion.

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".

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).

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