AJM Deloitte has evaluated Arsenal's reserves as at December 31, 2012 in accordance with National Instrument 51-101.

• Year/year proved developed producing reserves increased by 2.3% • Year/year proved plus probable reserves decreased by 5.2%. The decrease is due to a negative technical revision of recoverable reserves in the Bakken formation at Stanley and Lindahl from 550 Mboe/well to 475 Mboe/well. • Oil and natural gas liquids at December 31, 2012 constitute 81% of proved plus probable reserves • Arsenal's P+P PV10 net asset value is $1.27/share. • Based on the Q4 2012 production rate of approximately 3,925 boe/day, Arsenal has a reserve life of approximately 10.4 years on a proved plus probable basis. • Excluding technical revisions, FD&A was $20.81 per boe in 2012.

Tags: Arsenal Energy Inc.