CALGARY, ALBERTA--(Marketwire - April 4, 2012) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Azabache Energy Inc. (the "Company") (TSX VENTURE:AZA) announces that it has been contacted by the Province of Neuquén in Argentina and informed that the province has mandated relinquishment of the Company's interest in the Covunco Norte Block. Covunco Norte is a non-core exploitation concession of 17 km2 in the Neuquén Basin in the province of Neuquén. This exploitation concession resulted from the conversion 11 months ago of a portion of the Covunco Norte-Sur exploration permit after the Company discovered and tested gas from the Tordillo formation.
The provincial government has indicated it has taken this position because it perceives there has been insufficient investment activity on the Block. The Company believes it has undertaken more than the minimum requirements and is attempting to schedule meetings early next week with representatives of the provincial government to seek an early resolution to these unexpected events. The Covunco Norte Block represents approximately 2% of the Company's holdings in Argentina.
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.
This press release contains forward-looking statements. More particularly, this press release contains statements concerning the Company's meetings with government representatives to seek resolution to the noted events. 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 satisfactory resolution to the mandated relinquishment of Azabache's interest in the Block, the failure to obtain other regulatory and governmental 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.