CALGARY, ALBERTA--(Marketwire - Dec. 4, 2012) -
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) is pleased to provide an update on the status of certain of its exploration blocks in Argentina and Colombia.
Convunco Norte-Sur Block, Argentina
Following discussions with the government of the Province of Neuquén, Argentina, the Company has agreed to terms for an extension to the exploration permit on its "Convunco Norte-Sur" Block (the "Block") in the Province of Neuquén to April 30, 2013, whereby the Block would be reclassified as a "high risk" exploration block and amended to include in its area the acreage of the previously revoked "Convunco Norte" exploitation concession. The agreed terms of the arrangement involve: (i) an extension to the current exploration phase during which the Company must complete a frac/work over of the CVOx-2 well before April 2013 with an option to apply for an additional exploration term until April 2014; and (ii) the assignment to the provincial oil & gas company, Gas y Petroleo del Neuquén (G&P), of a 10% working interest in the Block. The Company expects that the Governor of the Province of Neuquén will sign the Decree approving the terms of the extension shortly.
The Company is encouraged to have reached agreement with the Province of Neuquén for the return of its 17 km2 Convunco Norte-Sur Block acreage that was mandated to be relinquished by the provincial government earlier in the year. Management believes that the "high risk" classification will allow the Company the time it needs to continue exploration of the Block to exploit the Vaca Muerta formation that was drilled in August with encouraging results.
La Mona Block, Colombia
An extension for drilling of the Patacones-1 Well on the La Mona Block in the Northern State of Magdalena, Republic of Colombia has been granted by the Agencia Nacional de Hidrocarburos (the "ANH"), whereby the Company must comply with commitment to drill the well within 145 days of the issuance of the environmental license approving drilling at the selected location. The Company expects that the environmental permits will be granted by the Ministry of Environment during January 2013.
For further information on Azabache please visit the Company's website at www.azaenergy.com.
This press release contains forward-looking statements. More particularly, this press release contains statements concerning the extension of the Company's exploration and drilling permits. 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 receipt of the extensions and terms thereof. 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.
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.