Buccaneer Energy Limited (ASX:BCC) Lee County Project Update - Vick # 2 Producing At 500 BOPD

Sydney, May 18, 2010 AEST (ABN Newswire) - Buccaneer Energy Limited (ASX:BCC) (PINK:BCGYF) is pleased to provide the following operational update.

VICK # 2

The Vick # 2 well reached Total Depth of 6030 feet at approximately 7.00pm Friday 14 May 2010 EST. Electric-line logs were then run and on completion of the logging run, wellbore fluids began flowing from the well unexpectedly.

The well was shut-in for approximately 12 hours and a wellbore pressure build-up was observed and analysed. Based on these observations and the significant shows during the previous drilling operations, special equipment was obtained to flow test the well.

At the time of this report the flow testing has resulted in a producing rate of approximately 500 BOPD. No water has been produced and minimal amount of gas has been produced. Flow testing is continuing at this time and as of noon CST the well had produced approximately 430 BO. A buyer is currently being arranged to purchase this oil.

Initial production levels from this well exceed the Company's expectations, especially since this is production from the vertical penetration of the Austin Chalk only - the horizontal component of the well has not yet commenced.

The well will be production tested for the next 12 to 36 hours to establish expected long term productivity and additional production logging may be warranted to pinpoint the main contributing interval in the Austin Chalk for future development plans.

Given the current production from the Vick # 2 well, the horizontal segment has been postponed until further production testing, logging and analysis have been completed. At that time, a decision will be made regarding whether and when to proceed with drilling the horizontal segment.

VICK # 2 - LOGGING RESULTS

A "quad-combo" suite of logs consisting of tools to record resistivity responses, gamma ray data and porosity measurements were run from 5910' up to the casing at 5234'.

The resulting log data and the responses from the Austin Chalk and Eagleford Formations were consistent with pre-drill expectations. The Austin Chalk generally exhibited porosities around 6% with some zones reading in the range of 8-12% which are good for the Austin Chalk. The log responses from the quad combo suite are, in fact, very similar to the logged responses observed in the Vick #1.

As mentioned previously, the logging tools were unable to go below 5910' and were thus unable to provide data over the lower 40-50' of the Eagleford.

The mud logs indicated heavy gases (C3-C5), and oil from the Austin Chalk section, both indicative of liquid oil entering the well bore while drilling. Lighter gases (methane, etc.) are also present but the data, as of now, are indicative of mostly oil production rather than mostly gas production. The mud logs also indicate that the Eagleford will remain a zone of interest for Buccaneer as the oil shows continued in that Formation as well.

A 'fracture identification' log was also run in the hole. It too was unable to go below the 5910' level. The log has been interpreted and numerous fractures are indicated in the Upper and Lower Austin Chalk. The location of the fractures and the shows of oil and heavy gases are interpreted by Buccaneer to be related.

VICK # 1

The completion rig has installed 2 3/8" tubing and the well is being readied for swab testing in order to determine the appropriate artificial lift equipment design.

The participants in the Lee County project are as follows:

Participant	                Working InterestBuccaneer Resources*              52.50%Sandstone Energy                  38.75%Megashine International Ltd        8.75%

*A wholly owned subsidiary of Buccaneer Energy Limited

Contact

Dean Gallegos Director Mob:+61-416-220-007 Ph: +61-2-9233-2520 Website: www.buccenergy.com