Buccaneer Energy Limited (ASX:BCC) Kenai Loop No 1 Well Drilling Report 3

Sydney, May 10, 2011 AEST (ABN Newswire) - Buccaneer Energy Limited (ASX:BCC) (PINK:BCGYF) is pleased to provide the following update on the progress of the Kenai Loop # 1 well:

Time: 9.00am (Sydney) 10 May 2011 / 3.00pm (Anchorage) 9 May 2011.

Depth: 10,680 feet Total Vertical Depth ("TVD")

Activity: Drilling completed to 10,680 feet. Wire line logging operations underway.

Results: Since the intermediate casing at 8,024' the well has been deepened to 10,680' TVD (Total Depth). Mud logs have identified 11 intervals within the Upper Tyonek, totalling approximately 355', as exhibiting characteristics warranting further testing.

Of these 11 intervals, 3 intervals totalling approximately 135' have been high graded as significant or very significant shows. These intervals are gas shows which exhibited either moderate visible porosity, were in massive sandstones or were unconsolidated sandstones.

One of the unconsolidated sandstone intervals totalling 60' was associated with a "gas kick" with an immediate and significant increase in pressure, recorded gas units were >2000 units and C1 - C4 gases were detected.

Wire line logging is expected to take 48 - 72 hours to complete after which casing will be run. On completion of casing the Upper Tyonek, a total of up to 10 zones from the Beluga and Upper Tyonek Formations will be selected, from the 16 zones identified, and perforated for flow testing. The Company has 10 perforation guns on site but as there are more than 10 zones of interest, not all zones will be tested. Flow testing of the identified zones will commence in approximately 7 days.

Massive sandstone indicates a relatively thick, uniform, not laminated, sandstone; possibly a channel type of sand with typically very good reservoir characteristics. Unconsolidated sandstones indicates a sand that was not or is no longer cemented and typically very good reservoir characteristics.

KENAI LOOP # 1 WELL - DRILLING REPORT # 3

Buccaneer Energy Limited ("Buccaneer" or "the Company") is pleased to provide the following update on the progress of the Kenai Loop # 1 well:

Time: 9.00am (Sydney) 10 May 2011 / 3.00pm (Anchorage) 9 May 2011.

Depth: 10,680 feet Total Vertical Depth ("TVD")

Activity: Drilling completed to 10,680 feet. Wire line logging operations underway.

Results: Since the intermediate casing at 8,024' the well has been deepened to 10,680' TVD (Total Depth). Mud logs have identified 11 intervals within the Upper Tyonek, totalling approximately 355', as exhibiting characteristics warranting further testing.

Of these 11 intervals, 3 intervals totalling approximately 135' have been high graded as significant or very significant shows. These intervals are gas shows which exhibited either moderate visible porosity, were in massive sandstones or were unconsolidated sandstones.

One of the unconsolidated sandstone intervals totalling 60' was associated with a "gas kick" with an immediate and significant increase in pressure, recorded gas units were >2000 units and C1 - C4 gases were detected.

Wire line logging is expected to take 48 - 72 hours to complete after which casing will be run. On completion of casing the Upper Tyonek, a total of up to 10 zones from the Beluga and Upper Tyonek Formations will be selected, from the 16 zones identified, and perforated for flow testing. The Company has 10 perforation guns on site but as there are more than 10 zones of interest, not all zones will be tested. Flow testing of the identified zones will commence in approximately 7 days.

Massive sandstone indicates a relatively thick, uniform, not laminated, sandstone; possibly a channel type of sand with typically very good reservoir characteristics. Unconsolidated sandstones indicates a sand that was not or is no longer cemented and typically very good reservoir characteristics.

Contact

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