Azabache Updates Status of Exploration Blocks

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) is pleased
to provide an update on the status of certain of its exploration blocks in
Argentina and Colombia. 


Convunco Norte-Sur Block, Argentina

Following discussions with the government of the Province of Neuquen, Argentina,
the Company has agreed to terms for an extension to the exploration permit on
its "Convunco Norte-Sur" Block (the "Block") in the Province of Neuquen to April
30, 2013, whereby the Block would be reclassified as a "high risk" exploration
block and amended to include in its area the acreage of the previously revoked
"Convunco Norte" exploitation concession. The agreed terms of the arrangement
involve: (i) an extension to the current exploration phase during which the
Company must complete a frac/work over of the CVOx-2 well before April 2013 with
an option to apply for an additional exploration term until April 2014; and (ii)
the assignment to the provincial oil & gas company, Gas y Petroleo del Neuquen
(G&P), of a 10% working interest in the Block. The Company expects that the
Governor of the Province of Neuquen will sign the Decree approving the terms of
the extension shortly.


The Company is encouraged to have reached agreement with the Province of Neuquen
for the return of its 17 km2 Convunco Norte-Sur Block acreage that was mandated
to be relinquished by the provincial government earlier in the year. Management
believes that the "high risk" classification will allow the Company the time it
needs to continue exploration of the Block to exploit the Vaca Muerta formation
that was drilled in August with encouraging results.


La Mona Block, Colombia

An extension for drilling of the Patacones-1 Well on the La Mona Block in the
Northern State of Magdalena, Republic of Colombia has been granted by the
Agencia Nacional de Hidrocarburos (the "ANH"), whereby the Company must comply
with commitment to drill the well within 145 days of the issuance of the
environmental license approving drilling at the selected location. The Company
expects that the environmental permits will be granted by the Ministry of
Environment during January 2013.


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 extension of the Company's
exploration and drilling permits. 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 receipt of the
extensions and terms thereof. 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.


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


Azabache Energy Inc.
Glenn Van Doorne
Chairman
+403.966.8739
[e-mail]
www.azaenergy.com