Regulatory Commission of Alaska Approves Buccaneer Energy Limited (ASX:BCC) Kenai Loop Gas Sales Contract

Sydney, Sep 26, 2011 AEST (ABN Newswire) - Buccaneer Energy Limited (ASX:BCC) is pleased to advise that the Regulatory Commission of Alaska ("RCA") has approved the gas contract between ENSTAR and the Company.

The gas contract allows Buccaneer to sell a minimum of 5.0 million cubic feet per day ("MMCFD") and up to 15.0 MMCFD at annual weighted average price of $6.24 MCF.

This firm price and volume gas contract commences in April 2012 with the gas under this contract being injected into the new gas storage facility CINGSA. CINGSA is scheduled for completion in early April 2012.

Construction of the pipeline to connect the Kenai Loop # 1 well to the local gas network is scheduled for completion in December 2011, all permitting required to build this pipeline is now in place. On completion of construction the Company can immediately commence gas sales into the spot auction market that operates during the peak winter months December 2011 - March 2012.

All gas contracts that involve the sale of gas to utilities require RCA approval prior to gas production commencing. The approval process can take up to 4 - 6 months if public hearings are required; the Company's contract approval by the RCA was the fastest in the history of the RCA.

Contact

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