Buccaneer Energy Limited (ASX:BCC) Lee County Project Operations Update

Sydney, Oct 27, 2010 AEST (ABN Newswire) - Buccaneer Energy Limited (ASX:BCC) (PINK:BCGYF) is pleased to provide an update for the Lee County project, located approximately 120 miles west of Houston.

Alexander # 1

The Alexander #1 was placed on production via pumping on Friday 22 October 2010. Since that time production has averaged 206 BOPD, consistent with the installed equipment pumping capacity.

A decision will be made on drilling a horizontal well to encounter additional fractures in either the middle Austin Chalk (941 BOPD flow rate over 72 hours) or Lower Austin Chalk after assessing oil production from pumping operations in the vertical well bore.

Vick # A2

Due to un-availability of a coiled tubing unit to assist in the removal of water build-up so as to re-establish oil production in the horizontal well, a decision was made to drill an additional 500' of horizontal. Drilling ceased after crossing a fault and encountering the Eagle Ford shale.

A decision was then made to side-track a new horizontal into an adjoining fault block.

The new horizontal will be 1750' in a direction 180 degrees to the existing horizontal in the Vick # A2. The new horizontal will test a fault block closer to the Alexander # 1 well and that was going to be tested in a future well (Allar # 1). This allows for the testing of this fault block at a significantly lower cost than a new well.

A decision on completion will be made after results from the new horizontal into the Allar # 1 fault block.

Contact

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