Azabache Energy Inc. 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.