Buccaneer Energy Limited (ASX:BCC) Update On Alexander # 1 Well At Lee County Project

Sydney, Aug 26, 2010 AEST (ABN Newswire) - Buccaneer Energy Limited (ASX:BCC) (PINK:BCGYF) ("Buccaneer" or "the Company") is pleased to announce that the Alexander # 1 well site location has been built over the last week and the Nicklos # 1 Rig is moving in and rigging up to drill.

The Alexander # 1 well is the third well in the Lee County drilling program and is expected to spud within the next 24 hours.

The vertical component of the well is anticipated to have a total depth of 5,800' and will penetrate the Austin Chalk and Eagle Ford shale. Logs will then be run before a 1,500' - 2,500' horizontal component is drilled in the Austin Chalk formation.

The vertical component is expected to take 7-10 days to drill and the horizontal component an additional 15-18 days.

Drilling updates will be made each Wednesday. Attached is a surface location map of the Lee County project area showing the locations of all three Lee County wells. (see link at the bottom of the release)

The participants in the Lee County project are as follows:

Participant Working Interest

- Buccaneer Resources*: 52.50%

- Sandstone Energy: 38.75%

- Megashine International Ltd: 8.75%

* A wholly owned subsidiary of Buccaneer Energy Limited

For the complete Buccaneer Energy announcement including Well Location Map, please refer to the following link:

http://www.abnnewswire.net/media/en/docs/63596-ASX-BCC-603394.pdf

Contact

Dean Gallegos Mob: +61-416-220-007 Tel: +61-2-9233-2520 http://www.buccenergy.com