Buccaneer Energy Limited (ASX:BCC) Kenai Loop No. 1 Well Drilling Update Report No. 4

Sydney, May 18, 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) 18 May 2011 / 3.00pm (Anchorage) 17 May 2011.

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

Activity: Wire-line logging operations completed. Casing set and flow testing operations are expected to commence within the next 48 hours

Results: Wire-line logging has identified a total of up to 173' of gross pay in the Upper Tyonek Formation.

In the interval 9,421' to 10,680' a partial set of logs were obtained confirming a total of 137' of gross pay. Logs over the intervals that were high graded within the 9,421' to 10,680' interval as significant or very significant in an earlier release have been confirmed with wire-line logs and have been defined as Zone 1, Zone 2 and Zone 3.

Zone 1 has an upper sand of 37' of gross pay which logs have confirmed as being quality reservoir with high porosity and good permeability. This upper sand package is in the region where a "gas kick" was experienced during drilling operations. This sand is a high priority test target. There is an additional 12' of lower sand which is a lesser quality sand, but remains attractive.

Zone 2 is an additional massive sandstone zone of approximately 50' of gross pay which logs indicate has good porosity and permeability. This is a high priority test target.

Zone 3 has a confirmed 38' of gross pay which logs confirmed as having good porosity and permeability.

Further logging over the 9,421 to 10,680' interval will be completed now that casing has been set, these logging operations may reveal other promising targets not included in this update.

A full set of logs on the Upper Tyonek Formation down to 9,421' were successful. Those logs have confirmed 4 intervals totalling 36' of gross pay.

The drilling rig must be released June 1. Accordingly, all efforts are currently focused on logging, testing and completing the well within that time frame.

Massive sandstone indicates a relatively thick, uniform, not laminated, sandstone; possibly a channel type of sand with typically very good reservoir characteristics.

Background: The closest wells to the Company's Kenai Loop # 1 well are the Cannery Loop # 3 and # 4 wells located in the Cannery Loop Field, which were drilled from the same surface location approximately 6,325 feet (1.2 miles) from the Kenai Loop # 1 well location.

The Cannery Loop # 3 and # 4 wells have produced a combined 25.5 BCF from pay zones whose equivalents are expected to be present in the Kenai Loop # 1 well, but separated from the Cannery Loop Field by geological deposition rather than fault. Drilling to date in the Kenai Loop # 1 well has confirmed that the formations encountered to date are likely separated from the Field.

There were 11 wells in the Cannery Loop Field. One well produced from the Sterling Formation which is not one a target in Kenai Loop # 1 well, the other 10 wells produced from the Beluga and Upper Tyonek. The Upper Tyonek is the primary target Formation of the Kenai Loop #1 well.

Contact

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