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

Sydney, Sep 20, 2010 AEST (ABN Newswire) - Buccaneer Energy Limited (ASX:BCC) (PINK:BCGYF) is pleased to provide an update for the Alexander # 1 well located at the Lee County project, approximately 120 miles west of Houston.

Drilling re-commenced on Thursday 16 September 2010 and since that time approximately 290' feet have been drilled whilst building the angle for the horizontal component of the well, this equates into approximately 150' of vertical depth.

Mud logs have indicated a further two fracture zones have been intersected and the well is flowing oil, gas is being flared at the surface. Maximum gas readings of over 5000 units have been recorded. It is not intended to production test these two new zones at this time.

These two new fracture zones are below the first fracture zone that was tested over a 72 hour test flowed at an average of 948 BOPD, this fracture zone was interpreted from mud logs as being 20' thick interval (5,640' - 5,660').

Currently changes are being made to the bottom hole assembly to increase the rate at which the angle is built for the horizontal component after which drilling will recommence. Drilling of the 2,700' horizontal component is expected to take 15-18 days.

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

Contact

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