Buccaneer Energy Limited (ASX:BCC) Operational Update

Sydney, Sep 12, 2011 AEST (ABN Newswire) - Buccaneer Energy Limited (ASX:BCC) is pleased to give the following update on operations:

Kenai Loop

The City of Kenai has approved the Company's pipeline easement from the Kenai Loop # 1 well location to Enstar's City Gate Station (approximately 7200 feet). The approval of the easement allows the construction of the pipeline to commence.

The Company has identified and has either purchased or agreed to purchase all critical production equipment to allow the Kenai Loop # 1 well to commence gas production. The Company is on track to start producing and selling gas in December 2011.

Kenai Loop Additional Leasing

The Company is pleased to advise that it has leased an additional 320 acres from the Mental Health Trust ("MHT") of Alaska. This increases the acreage under lease at Kenai Loop to a gross 9,308 acres, the Company owns a 100% working interest and an average 82.0% net royalty interest in the leased acreage. See map: http://media.abnnewswire.net/media/en/docs/ASX-BCC-648350.pdf

The lease terms are consistent with the terms on which the initial acreage was leased from the MHT.

Pompano

The Company has a 65.0% working interest in the SL 103229 and SL 103230 wells located in the Pompano field in the Gulf of Mexico. Both wells were drilled and placed onto production in early 2008 with production from these wells has over time declined naturally with gradual depletion of reservoir pressure and in some cases sand being carried into the wells' tubing.

The work-over of both wells have commence so as to restore production. Since commencing operations continuous interruptions have been experienced due to tropical storms passing through the Gulf of Mexico.

Pulse neutron logs have been run in the SL 103229 well B Sand, this indicates producible gas remains in the B Sand. This well requires the injection of acid to clean out the perforations to return it to production Production was re-established in the A Sand in the SL 103230 well but was shut-in due to weather delays.

On resumption of operations the A Sand will be logged and production levels monitored.

Lee County

Buccaneer has a 52.5% working interest in the Alexander # 1 well located 120 miles north-west of Houston located with the Lee County project. A vertical well was drilled through the Austin Chalk in September 2010, with excellent shows of oil produced while drilling. The original drilling plan was to drill and evaluate the Austin Chalk and Eagle Ford Shale.

A 2,500 foot horizontal well has been successfully drilled at the Alexander # 1 well in the Austin Chalk and a liner has been set. Numerous oil shows were encountered while drilling and the Company is in the process of evaluating these in conjunction with data from a test 3D seismic recently shot over the immediate area around the Alexander well. On completion of this evaluation a decision will be made to assess the production potential of the well.

Contact

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