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Arsenal Energy Inc. completes drilling bakken, North Dakota wells

At Stanley North Dakota, Arsenal Energy, as operator, has completed drilling both the Anthony Robert and Wade Morris 2-mile horizontal Bakken wells. Each well encountered good shows while drilling. Arsenal has an approximate 84% working interest in each well. It is anticipated that both wells will be completed with multistage fracturing and placed on production by the end of June.

At Princess in Eastern Alberta, Arsenal has received approval from the Alberta Energy Board for waterflood of the Mannville Q pool. Water injection conversion and pipeline operations have begun. Arsenal anticipates that water injection will begin by the end of June and that waterflood response should become apparent within six months after that. Reservoir modeling indicates an incremental 470,000 bbl of reserves should be recoverable from the Q pool under waterflood. Arsenal has two additional Mannville pools of similar size at Princess that are in the application stage of the waterflood permitting process.



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