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

Sydney, Sep 7, 2011 AEST (ABN Newswire) - Buccaneer Energy Limited (ASX:BCC) is pleased to provide the following update on the progress of the Kenai Loop # 3 (second well in the Kenai Loop drilling program) well:

Time: 7.00am (Sydney) 7 September / 4.00pm (Anchorage) 6 September 2011.

Depth: 6,800 feet Total Measured Depth ("TMD")

Activity: Surface casing was successfully run and cemented in place at 3,027 feet. Directional drilling was initiated to position the final bottom-hole location approximately 1,800 feet south of the previous drilled Kenai Loop # 1 well.

Currently drilling 9 7/8" directional hole section to 8,000 feet total vertical depth ("TVD") where casing will be set, the well will then be vertically drilled to the planned 11,000 TVD.

This second well is being drilled from the same drilling pad as the Kenai Loop # 1 ("KL # 1") well. The Company intends to test the 9,700 and 10,000 zones tested in KL # 1 and additional zones at approximately 10,600 feet that were untested in KL # 1 due to rig availability constraints.

If successful, there is likely to be a significant increase to current Proved and Probable (2P) Reserves of 38.3 BCF (4.8 MMBOE), of which 31.5 BCF (3.9 MMBOE) are Proven Reserves.

Contact

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