CALGARY, ALBERTA--(Marketwired - Jan. 29, 2014) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Azabache Energy Inc. ("Azabache" or the "Company") (TSX VENTURE:AZA) announces the completion of the fracture stimulation operation at the Cvo.x-2 well in the Covunco Norte Sur Block, Neuquén Province (the "Block"). The operation achieved its primary objective of proving that oil can be liberated from the Vaca Muerta formation, which is consistent with previous studies conducted by the Company's consultants on the Block.
The lower stimulation (perforated at 1,990.5 to 1,974.0 meters below ground level) was halted after the injection of 876 cubic meters of water and 20.9 metric tons of proppant, due to low fraccability of the base of the Vaca Muerta formation and because the fractures were expanding beyond the target zone into the gas and water bearing Tordillo formation, below the Vaca Muerta.
The middle stimulation (perforated at 1,946.0 to 1,914.5 meters below ground level) was completed after the injection of 1,259 cubic meters of water and 182.6 metric tons of proppant. A microseismic survey indicated the fractures extended 210 meters in length and 189 meters in height above the perforated zone.
The upper stimulation (perforated 1,672.7 to 1,642.0 meters below ground level) was completed after the injection of 1,538 cubic meters of water and 211.1 metric tons of proppant. A microseismic survey indicated the fractures extended 287 meters in length and 186 meters in height above the perforated zone.
Currently the well is on test production. The injected water is expected to be recovered during the first 3 weeks, after which the formation fluid is expected to be produced.
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 contains forward-looking statements. More particularly, this press release contains statements concerning fracture stimulations of its Cvo.x-2 well on the Covunco Norte-Sur Block and the commencement of the Company's production test. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Azabache and its expected 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.
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.