Government Decree Solidifies Azabache's Land Position and Returns Previously Revoked Acreage

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, further to the Company's press release dated December 4, 2012, the
Governor of the Province of Neuquen has signed the Decree # 0152/13 (the
"Decree") which returns the Covunco Norte acreage in the Province of Neuquen to
the Company and which allows for an extended phase of unconventional exploration
of such acreage which forms part of the larger Covunco Norte-Sur block.


The Decree provides an extension to the current exploration phase during which
the Company must complete fracture stimulation or work over of the COVx-2 well
before April 2013. The COVx-2 well was drilled through the Vaca Muerta last May.
This fracture stimulation will be the first test of the Vaca Muerta shale on the
Company's extensive land holdings. 


Under the Decree the Company will have the option to apply for an additional
exploration term until April 2014 or a five year evaluation period if warranted
by results. There after the Company may enter into a twenty five year
exploitation phase. As set forth in the Company's Press Release dated December
4, 2012 the Company has agreed to assign a 10% working interest to the
provincial oil & gas company (G&P) as part of the arrangement. 


The Company is encouraged by this development as it will allow the Company the
time it needs to continue exploration of the block and will provide prospective
joint venture partners with the land tenure assurance they need to proceed with
the substantial investments required to exploit the Vaca Muerta formation. 


The Company has posted on its website www.azaenergy.com the Corporate
Presentation given at the annual shareholder meeting by the Company's Chief
Executive Officer, Claudio Larotonda and an English translation of the Decree. 


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 Company's operations. 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 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