CALGARY, ALBERTA--(Marketwire - Feb. 15, 2013) -
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 that, further to the Company's press release dated December 4, 2012, the Governor of the Province of Neuquén has signed the Decree # 0152/13 (the "Decree") which returns the Covunco Norte acreage in the Province of Neuquén to the Company and which allows for an extended phase of unconventional exploration of such acreage which forms part of the larger Covunco Norte-Sur block.
The Decree provides an extension to the current exploration phase during which the Company must complete fracture stimulation or work over of the COVx-2 well before April 2013. The COVx-2 well was drilled through the Vaca Muerta last May. This fracture stimulation will be the first test of the Vaca Muerta shale on the Company's extensive land holdings.
Under the Decree the Company will have the option to apply for an additional exploration term until April 2014 or a five year evaluation period if warranted by results. There after the Company may enter into a twenty five year exploitation phase. As set forth in the Company's Press Release dated December 4, 2012 the Company has agreed to assign a 10% working interest to the provincial oil & gas company (G&P) as part of the arrangement.
The Company is encouraged by this development as it will allow the Company the time it needs to continue exploration of the block and will provide prospective joint venture partners with the land tenure assurance they need to proceed with the substantial investments required to exploit the Vaca Muerta formation.
The Company has posted on its website www.azaenergy.com the Corporate Presentation given at the annual shareholder meeting by the Company's Chief Executive Officer, Claudio Larotonda and an English translation of the Decree.
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 Company's operations. 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 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.