Azabache Energy Inc.

Azabache Energy Inc.

December 23, 2013 17:07 ET

Azabache Announces Closing of Private Placement

CALGARY, ALBERTA--(Marketwired - Dec. 23, 2013) -


Azabache Energy Inc. (TSX VENTURE:AZA) ("Azabache" or the "Company") announces that it has closed the first tranche of its previously announced non-brokered private placement (the "Private Placement"). Azabache has sold 26,023,064 units of the Company ("Units") at a price of $0.13 per Unit for gross proceeds of $3,382,998.32. Each Unit consists of one common share in the capital of the Company ("Common Share") and one-half share purchase warrant of the Company (each whole, a "Warrant"), with each whole Warrant entitling the holder to purchase one Common Share at a price of $0.18 per share for 24 months from the closing date of the Private Placement. All securities issued pursuant to the Private Placement will be subject to a four month hold period expiring on April 24, 2013.

In connection with the Private Placement, the Company paid a finder's fee to eligible persons in accordance with applicable securities laws, consisting of $87,722.91 in cash.

The net proceeds of the Private Placement will be used to fund the Company's Vaca Muerta Project, as well as for general working capital and general corporate purposes.

For further information on Azabache Energy please visit the Company's website at

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

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release contains forward-looking statements. More particularly, this press release contains statements concerning the expected use of proceeds of the Private Placement. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Azabache, including with respect to the expected future operations. Although Azabache believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Azabache can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to obtain necessary regulatory approvals, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations. The forward-looking statements contained in this document are made as of the date hereof and Azabache undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Contact Information