Buccaneer Energy Limited (ASX:BCC) Vick # A2 Well Operation Update At Lee County Project

Sydney, Nov 17, 2010 AEST (ABN Newswire) - Buccaneer Energy Limited (ASX:BCC) (PINK:BCGYF) is pleased to provide an update for the Vick # A2 well located at the Lee County project, located approximately 120 miles west of Houston.

Vick # A2

The Vick # A2 well successfully commenced production under natural pressure at approximately 3.00am Friday 12 November 2010 (Sydney time). Production from the well was initiated from the Allard horizontal with production rates varying between 800 BOPD to 1000 BOPD, the well has exhibited good oil inflow from fractures intersected in the horizontal. The Allard horizontal was the second horizontal drilled in the well.

Production from the well has not yet stabilized and pumping equipment will be used to produce the well, although pumping rates will be lower than initial rates. As the Austin Chalk typically has a low Gas Oil Ratio ("GOR") naturally flowing rates can decline rapidly after production is initiated. It is normal to utilize artificial lift equipment, usually rod pumping equipment, to maintain long term production from these types of wells.

In the Allard horizontal completion a 2 7/8" completion tubing was installed in the well instead of the normal 2 3/8" tubing. This larger diameter tubing will allow for higher pumping capacities (~300 BOPD).

At this time, it is expected that this second Allard horizontal will likely produce a volume of oil that exceeds the capacity of the artificial lift equipment and, as such, actions to add any additional production from the initial horizontal will be delayed until a later date. Any future production from the first lateral will serve to extend the overall production profile expected from the well.

The participants in the Lee County project are as follows:

Participant Working Interest

- Buccaneer Resources*: 52.50% (* A wholly owned subsidiary of Buccaneer Energy Limited)

- Sandstone Energy: 38.75%

- Megashine International Ltd: 8.75%

Contact

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