Azabache Energy Inc. : Azabache Announces Agreement to Acquire 20% Working Interest in Colhue Huapi S.A.

Azabache Announces Agreement to Acquire 20% Working Interest in Colhue Huapi S.A.

CALGARY, ALBERTA--(Marketwire - Jan. 9, 2012) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Azabache Energy Inc. (the "Company") (TSX VENTURE:AZA) announces that it has entered into an agreement, through its subsidiary Argenta Energy S. A. ("Argenta"), with Colhue Huapi S.A. ("Colhue") to acquire a 20% working interest (the "Working Interest") from Colhue in the Covunco Norte Block (the "Block") in Argentina. Colhue purchased the Working Interest from Argenta through a farm-out arrangement in October 2010. After closing the transaction, the Company will own a 100% interest in the Block. The Company has agreed to pay Colhue consideration of US$1,850,000 for the Working Interest, which is equivalent to a net cost per acquired acre of US$428.50. The acquisition is expected to close on January 23, 2012.

This acquisition will increase the Company's interest in a property that may hold potential for shale oil and gas.

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.

This press release contains forward-looking statements. More particularly, this press release contains statements concerning the Company's acquisition of the Working Interest in the Block and the anticipated timing of closing. 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 meet any conditions necessary to closing the acquisitions; 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.