Butte Energy Inc. Provides Operational Update

/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES/

  TSXV: BEN 

CALGARY, May 23, 2012 /CNW/ - Butte Energy Inc. (the "Company") is pleased to provide the following operational update on its Chigwell 04-35-042-26 W4 well which was drilled in April 2012.

The Butte Chigwell 4-35- 42-26 W4 has been completed and is currently being production tested. The well is currently being flowed at a rate of 3 to 6 barrels per hour of 38 degree Viking oil. The Company will continue flow monitoring of the well until an optimized, stable production rate is achieved. The Company plans to drill four additional wells in the development of its section of land associated with this oil play.

The Company is a junior oil and gas company focused on the exploration for and development of oil and natural gas in central Alberta.

Cautionary statements

This news release contains "forward-looking statements" within the meaning of applicable securities laws relating to production rates for the Butte Chigwell well and plans to drill additional wells.  Readers are cautioned not to place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements. There is no guarantee that commercial levels of production will be achieved.  The statements in this news release are made as of the date of this release. Except as required by law, the Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Butte Energy Inc.
Victor Redekop, Chairman
Tel: [phone]