| CALGARY, ALBERTA--(Marketwire - March 18, 2013) -
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 it intends to proceed with a non-brokered private placement (the "Private Placement") of a minimum of 31,250,000 common shares in the capital of the Company (the "Common Shares") at a price of $0.16 per Common Share for minimum gross proceeds of $5,000,000 and a maximum of 62,500,000 Common Shares for maximum gross proceeds of up to $10,000,000.
Closing of the Private Placement is expected to occur on or about March 21, 2013 or such other date as the Company may determine, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange (the "Exchange"). The Common Shares issued pursuant to the Private Placement will be subject to resale restrictions imposed by applicable securities laws and the policies of the Exchange.
The Company intends to use the proceeds from the Private Placement to complete fracture stimulation and work over of the Company's COVx-2 well in the Vaca Muerta formation as well as for general working capital and general corporate purposes.
In connection with the Private Placement, the Company may pay eligible persons a finder's fee of up to 6% of that portion of the proceeds of the Private Placement that result from such parties efforts, subject to compliance with applicable securities laws.
The Company is also pleased to announce the appointment of Mr. Marcelo Etchebarne as director of the Company. Mr. Etchebarne is a senior partner in the Corporate Finance Group at Cabanellas Etchebarne Kelly, a law firm based in Buenos Aires. In 2003 he was ranked as one of the top 40 lawyers under 40 in Argentina by the Latin Lawyer Survey. Mr. Etchebarne is counsel to large local and international companies doing business in the energy sector in Argentina. He also brings significant experience in international debt and equity securities offerings to the board. Mr. Etchebarne graduated as a lawyer from Argentine Catholic University Law School, obtained an LL.M. from Harvard Law School, and was admitted to the Argentine bar in 1994 and the New York State bar in 1997.
The Company also announces the resignation of Mr. Vincent Chahley as a director of the Company effective March 11, 2013. The Company would like to thank Mr. Chahley for his contribution to Azabache and wishes him success in his future endeavors.
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