Azabache Energy Inc.

Azabache Energy Inc.

June 25, 2014 16:43 ET

Azabache Announces Engagement of Reservoir Engineers and Correction to Stock Option Grant

CALGARY, ALBERTA--(Marketwired - June 25, 2014) -


Azabache Energy Inc. ("Azabache" or the "Company") (TSX VENTURE:AZA) is pleased to announce that it has retained Gaffney Kline & Associates of Houston, Texas to conduct a full field resource report on the Company's Covunco Norte Sur Block, Neuquén Province in Argentina (the "Block") and in particular the Vaca Muerta formation. The Company expects the report to be completed in the third quarter of 2014. This report when completed will be helpful to Management as it seeks to commercialize the Block by means of the injection of further capital or a suitable joint venture partner.

The Company as well advises that on June 6, 2014, it announced the issuance of 11,025,000 stock options ("Options") of the Company, which announcement was made in error. The Company announces that pursuant to the terms of its stock option plan, its Board of Directors has approved the granting of options to purchase an aggregate of 7,375,000 common shares, effective June 20, 2014, at a price of $0.13 per share to certain of its directors, officers, employees and consultants. After the grant, the Company will have 6,934,858 options available for issuance.

The options will all have time vesting provisions with one-third vesting on the date of grant, and one third on each of second and third anniversaries of the date of grant.

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

This press release contains forward-looking statements. More particularly, this press release contains statements concerning the timing for receipt of the field resources report and its expected purpose. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Azabache. 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 complete the field resource report in a timely manner or at all, risks associated with the results of the field resource report and its intended purpose, 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.

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.

Contact Information