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

Sydney, Sep 29, 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.

A successful flow test was conducted over a 72 hour period. The well unloaded drilling fluid (pumped into the well bore during drilling operations) and produced oil and gas.

Over the final 12 hours of the flow test the well was flowing at a daily rate of 534 BOPD with the water rate declining and the oil rate increasing. Stating an average production rate over the full period would be misleading due to the process of unloading drilling fluid and its influence on oil production rates.

Due to the number of fractures intersected and the initial production rates from those fractures a decision was made to complete the well for production as a vertical well. It is anticipated that the well will be completed for production in approximately 7-10 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