Azabache Signs E&P Contract for La Mona Block

Azabache has signed an Exploration and Production Contract with the Colombian National Hydrocarbons Agency ("ANH") to explore for, develop and produce hydrocarbons found in La Mona Block, an area of 44,497 hectares (109,954 acres), located in the Northern State of Magdalena, Republic of Colombia.

The Company recently acquired 50 line-km of 2-D seismic data to complement the existing data. As a result of the latest interpretation several very large prospects were identified, similar in nature with recent gas discoveries in the Lower Magdalena Basin.

In Phases 1 and 2 of the 24 month Exploration Period of the E&P Contract, Azabache has committed to acquire and process a 85 km 2D seismic data, and to drill one (1) Exploratory Well.