Azabache Energy Inc. provided 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 Neuquén, Argentina, the company has agreed to terms for an extension to the exploration permit on its ‘Convunco Norte-Sur' block in the Province of Neuquén 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: 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 the assignment to the provincial oil & gas company, Gas y Petroleo del Neuquén (G&P), of a 10% working interest in the Block.

The company expects that the Governor of the Province of Neuquén will sign the Decree approving the terms of the extension shortly. 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, 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.