CALGARY, ALBERTA--(Marketwire - April 24, 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) announces that is has completed the workover of its OAx-1 well. The results of the a 12-hour test on the Lajas Formation yielded 7,000 m3/d (250,000 ft3/d) of natural gas at a wellhead pressure of 1.4 kg/cm2 with a 16 mm (64 inch) choke. The well is now under long-term test. Due to the poor casing conditions of this old well, the OAx-1 well will not be a candidate for stimulation but the long-term test could confirm a new area of gas development within the Covunco Norte-Sur block.
Also, the Company announces that it expects to begin drilling its CVOx-2 well by the end of this week. The exploration well targets the Vaca Muerta Shale and also a former gas discovery in the Tordillo Formation to a total depth of 2,100 meters (6,900 feet). It is expected that it will be completed and partially tested by the beginning of June. The fracture job in the shale should be designed and executed within three months of completion. The Company expects to acquire significant new technical information concerning the Vaca Muerta shale during the drilling. This well will be the first exploration of Vaca Muerta shale in this portion of the basin.
Claudio Larotonda, CEO and President of Azabache stated: "The Company has invested a significant amount of capital in South America to date and is committed to grow in Argentina and Colombia where we see opportunities to add value to our projects".
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 exploration and development, its future operations and the completion of its drilling programs. 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 completion of drilling, the participation of other parties in its planned operations and the results of its exploration and development activities. 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.
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.