Buccaneer Energy Limited (ASX:BCC) Granted First Alaskan Clear and Equitable Share Rebate

Sydney, Dec 20, 2011 AEST (ABN Newswire) - Buccaneer Energy Limited (ASX:BCC) is pleased to advise that the Alaskan Department of Revenue has approved the Company's first rebate under the Alaskan Clear and Equitable Share ("ACES") incentive program.

The application for this rebate was lodged in August 2011 and relates to the initial drilling expenditures for the Kenai Loop #1 well. The amount of this first ACES rebate is US$2.85 million. This rebate forms part of the approximately $13.5 million in accrued ACES rebates through expenditures at the Kenai Loop project, with the remaining rebates expected to be received in a number of tranches up to July 2012.

The first tranche of rebated funds are expected to be received in the next 10 - 14 days and will be used to repay the revolving credit facility with Centaurus Capital LP ("Centaurus"), a Houston-based investment fund.

In early December 2011 the Company executed a 5 year US$50.0 million revolving credit facility with Centaurus to bridge fund rebates available to the Company under ACES. It is expected that this bridging facility will fund approximately 50 per cent of all capital expenditures on the Company's Alaskan leases.

Buccaneer Director Dean Gallegos said:

"The ACES incentive program underpins the unique commercial appeal of our Alaskan projects. This first rebate demonstrates the compelling project economics that exist at our Kenai Loop project, which are awarded based on Company expenditure regardless of well success.

"Our innovative funding program, of which the Centarurus bridging facility is a part, significantly reduces the amount of capital Buccaneer needs to develop its Alaska leases.

"The first ACES rebate approval is another important milestone for the Company and demonstrates clearly how the ACES program works in practice."

Contact

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