Azabache Energy Inc.: Drilling Completion of Lemaya Well- Antares Block (Colombia)

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THE UNITED STATES.


Azabache Energy Inc. ("Azabache" or the "Company") (TSX VENTURE:AZA) announces
that on August 28, 2012 the Operator of the Antares Block, Colombia, in which
the Company has a 50% working interest, has completed the drilling and casing of
the Lemaya Well which was targeting the Caballos formation. 


Unfortunately, this formation was found to be water bearing. However, the
presence of 2,367 feet of Villeta Group source rock with indications of
hydrocarbons consistent with production tests 16 km to the North East,
encouraged the Operator to extract 39 Sidewall cores (SWC) in the La Luna,
Bambuca and Tetuan formations, and to complete the well to 3,199 feet. 


While the potential to develop resources from this group is at a very
preliminary stage, the acquired logs, sidewall-cores and mud logging data will
be analyzed during the next 6 months.


This press release contains forward-looking statements. More particularly, this
press release contains statements concerning the Company's operational
activities as well as the timing of completion of the analysis of data acquired
in the drilling of the Lemaya Well. 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 conclude arrangements with joint
venture partners to assess the viability of the Company's shale oil and gas
assets, 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.