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

Sydney, Nov 3, 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.

Vick A #2

The 1,745' second horizontal in the Lower Austin Chalk fractures has reached total depth today with over 1,000' of gross horizontal oil pay being intersected from 11 different oil shows. The final depth was 7,300' measured at a True Vertical Depth of 5,746'. Oil flowed to the surface while drilling at 5 different locations (852' of gross horizontal oil pay) within this total pay.

During one 24 hour period the well flowed approximately 150 BO while drilling, and flared gas from 20' - 35'. The shows from this horizontal have shown more solution gas content with the oil than the other wells in the area. This may allow the wells to flow naturally for a longer period before pumping will be required.

The well was drilling in an oil show through the final total depth, but the horizontal length was limited by a permitted unit spacing boundary. It is the intention to complete the well for production in this second lateral first, and possibly the first lateral will be produced at a later date.

The production equipment and tank battery from the original Vick A #2 production is still in place. A completion rig should be available to run tubing in the well within 7-10 days, and the well is expected to commence producing within 7 days thereafter.

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