Buccaneer Energy Limited (ASX:BCC) Kenai Loop No.3 Well Drilling Progress Report No.2

Sydney, Sep 14, 2011 AEST (ABN Newswire) - Buccaneer Energy Limited (ASX:BCC) is pleased to provide the following update on the progress of the Kenai Loop # 3 well which is the second well in the Kenai Loop development program:

Time: 9.00am (Sydney) 14 September / 3.00pm (Anchorage) 13 September 2011.

Depth: 7,980 feet Total Vertical Depth ("TVD") / 8,360 feet Measured Depth.

Activity: The well has been drilled through the lower Beluga Formation. Side wall coring ("SWC") and selected pressure tests have been completed and intermediate casing is currently being run. Once the casing is cemented drilling will recommence and proceed to the Upper Tyonek Formation (primary target) and will achieve a Total Depth of 11,000 feet TVD.

Results: The pre drill targets of the KL # 3 well are the Beluga Formation (secondary target) and Upper Tyonek Formation (primary target).

While drilling through the Beluga Formation, 16 zones of interest were intersected totalling approximately 130 feet in gross thickness. Mud logs indicate the presence of methane gas. SWC's were taken from 9 of the zones and sent for analysis. 7 other zones (68 feet gross) are still being evaluated as the logging data continue to be delivered.

Contact

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