Azabache Energy Inc.
TSX VENTURE : AZA

Azabache Energy Inc.

January 09, 2014 09:01 ET

Azabache Energy Inc. Announces Vaca Muerta Well Fracture Stimulation Commences

CALGARY, ALBERTA--(Marketwired - Jan. 9, 2014) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Azabache Energy Inc. (TSX VENTURE:AZA) ("Azabache" or the "Company") announces that it has commenced a fracture stimulation of its Cvo.x-2 well on the Covunco Norte-Sur Block in Argentina. This completion operation will involve eight clusters of perforations in three stages with the Vaca Muerta Shale Formation planned to be stimulated by a total of 12,357 sacks (561 tonnes) of proppant. Schlumberger (Argentina) planned and will perform the fracture stimulation. The stimulation operation is expected to last a total of three days followed by a ten day test period.

This stimulation satisfies remaining commitments under the Company's Covunco Norte-Sur Block license and is aimed at proving a sufficient hydrocarbons flow from the Vaca Muerta Shale Formation to request an extended evaluation period from the Province of Neuquén. In addition, it is expected to provide valuable information to improve production techniques for the Vaca Muerta in a relatively new region of the Neuquén Basin.

It should be noted that this fracture stimulation programme was designed based on Schlumberger's local and worldwide experience, including results from recent operations in the Neuquén Basin. Since Azabache's leases are located in a different, relatively unexplored part of the Neuquén Basin, the planned programme might not be optimal for this area and several more wells might be needed to optimize the fracture stimulation programmes.

For further information on Azabache please visit the Company's website at www.azaenergy.com

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 a fractured stimulation of its Cvo.x-2 well on the Covunco Norte-Sur Block and the Company's future operations. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Azabache, its 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.

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.

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