Azabache Energy Inc.
TSX VENTURE : AZA

Azabache Energy Inc.

May 31, 2012 17:23 ET

Azabache Completes Drilling Of CVOx-2 Well

CALGARY, ALBERTA, CANADA--(Marketwire - May 31, 2012) -

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Azabache Energy Inc. ("Azabache" or the "Company") (TSX VENTURE:AZA) announces that is has completed the drilling and casing of its CVOx-2 Vaca Muerta well on the Covunco Norte-Sur Block.

The data acquired in the 360-meter Vaca Muerta Formation include 4 cores (each 9 meters long), 50 rotated sidewall cores and a complete set of standard and special logs.

All of the data has been sent for analysis to laboratories in the US and Argentina. The results will be used to fully delineate the Vaca Muerta shale oil potential and to design the completion and stimulation program. The Company does not expect to announce any results from the shale until after these analyses and the fracture stimulations are completed over the next 5 months.

Claudio Larotonda, CEO and President of Azabache Energy stated: "We are proud to announce the completion of the first Vaca Muerta well in this area. The well was drilled as planned with significant data having been acquired. We are now starting our detailed analysis of our shale prospect in the Covunco Norte-Sur Block. At the same time, the Company continues to actively explore farm out and development opportunities for its shale prospects".

This press release contains forward-looking statements. More particularly, this press release contains statements concerning the Company's future operations and the analysis of its drilling results. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Azabache, including with respect to the anticipated timing for completion of the results analysis and fracture simulations and the results of its exploration and development activities. 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.

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.

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