Azabache Energy Inc. announced that it applied for and received approval from the Province of Neuquén for a one year extension to its exploration permit on certain acreage which forms part of the 'high risk' Covunco Norte-Sur Block, located in the Province of Neuquén in Argentina. Pursuant
to the Extension, the Province of Neuquén approved the investments incurred on the Block by the Company during the last year of $6,624,300; granted the company an extension to the term of its exploration permit of one year, effective from April 22, 2013 to April 21, 2014; approved the work program proposed by the Company, consisting of completing the remainder of the previous commitment ($1,375,700) and the execution of two (2) additional fractures in the COVx-2 well ($2,000,000), to be completed within the above extension period; and requires that the company pay a lease fee of approximately $1,125,000 at the official exchange rate. The extension was obtained to allow the Company to complete the fracture stimulation and its evaluation prior to the end of the current exploratory period. In conjunction with the Company's current financing and to meet the commitments, Azabache intends to fracture stimulate three separate zones of the Vaca Muerta Formation in the COVx-2 well prior to April 21, 2014.