Azabache Energy Inc V.AZA

RE:financing

[Cabrio1]

It's a lot of dilution, but what choice do we have?  We have commitments to the Province to get going.

Meanwhile, money is real tight in Canada, so it's difficult to raise capital for speculative microcap stocks.  We need connections somewhere else, maybe in Europe, Russia, China, or the Middle East. 

 I think we should hear soon what we expect to frac COV-x2.  When we frac COV-x2 and if we have good oil flow/production, then our short term problems are over, and everybody will want in. 

However, sometimes fracs take several "tries" to determine the best techiques.  One advantage we have it that we will do a veritcal frac, which is easier and cheaper to do. 

I am anxious to hear what we do with the rest of the money that is raised in the second part of the deal.