Arsenal Energy, Inc., a Canada-based oil and gas exploration and production company, has closed private placement of 22,158,500 common shares (including 2,368,500 common shares upon exercise of an over allotment option) at a price of CAD0.95 per share for aggregate gross proceeds of CAD21.05 million ($21.32 million) with the syndicate of underwriters led by Wellington West Capital Markets, Inc.