Azabache Maintains 90% Working Interest in Vaca Muerta Assets and Enters Into Loan Agreement

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 it has entered into a Termination and Mutual Release Agreement
("Termination Agreement") and a loan agreement (the "Loan Agreement") with RIO
BRAVO COMMERCIAL ENTERPRISES INC. ("RBE"), a private Panamanian corporation.
Under the Termination Agreement, Azabache and RBE agree to the early termination
of the previously announced Participation Agreement (the "PA"), under which RBE
was to pay US$5,000,000 in exchange for earning a 23.76% working interest
(directly or indirectly) in the Covunco Norte-Sur and the El Corte joint
operating agreements and contracts in the Province of Neuquen (the "Contracts").
In consideration for the early termination, RBE has paid US$1,100,000 to the
Company. RBE had previously advanced US$2,100,000 to the Company under the terms
of the PA and its amendments.


Pursuant to the terms of the Loan Agreement, the entire amount paid by RBE under
the PA and the Termination Agreement will be converted to an unsecured
convertible loan from RBE to Azabache. Provisions of the Loan Agreement include:




--  Principal amount - US$3,200,000 
--  Interest rate - 6% per annum 
--  Maturity date - July 25, 2015 
--  Pre-Payment - Azabache is entitled to pre-pay the principal amount plus
    accrued interest at any time. The Company agrees to pre-pay US$1,000,000
    if it completes a financing that result in net proceeds in excess of
    US$15,000,000 or a farm-out of any assets which includes a cash payment
    in excess of US$5,000,000. 
--  Conversion Rights - subject to TSX Venture Exchange ("TSXV") and
    shareholder approval, if required, Azabache may convert the principal
    plus interest into Common Shares of the Company at any time after April
    21, 2015. 
--  Conversion Price - the greater of the volume-weighted average trading
    price of the Common Shares for a 30 day period prior to conversion or
    the "Market Price" as defined in the policies of the TSXV. 
--  Loan Conversion - if required approvals of the TSXV or the Company's
    shareholders are not obtained within 6 months of the date of the
    notification of the conversion, Azabache has the option to repay the
    principal and interest in full or to convert the principal plus interest
    into a new loan maturing 2 years from the date of the notice of
    conversion with an interest rate of 10% per annum.



The Company intends to use the proceeds of the loan for working capital and
general corporate purposes. 


As a result of the early termination mentioned above, the Company recovers a
23.76% working interest in the El Corte and Covunco Norte-sur Blocks and
maintains a total of 90% working interest in Vaca Muerta assets. 


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 terms of the termination and
loan transactions and expected use of proceeds from the loan. The
forward-looking statements contained in this document are based on certain key
expectations and assumptions made by Azabache and its expected operations.
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 receive necessary regulatory
approvals, or for any other reason, to complete the termination and loan
transactions in a timely manner or at all, 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.


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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Azabache Energy Inc.
Claudio Larotonda
President & CEO
+54.11.4893.4004
[e-mail]


Azabache Energy Inc.
Marc Bouchard
CFO
+647.409.4088
[e-mail]
www.azaenergy.com