Buccaneer Energy Limited (ASX:BCC) Kenai Loop No.3 Well Drilling Progress Report No.5

Sydney, Oct 5, 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) 5 October / 2.00pm (Anchorage) 4 October 2011.

Depth: 11,000' Total Vertical Depth ("TVD").

Activity: Wire-line logging, sidewall coring, fluid and pressure testing completed. Liner has been run and preparing to perforate and test zones.

Results: A flow testing program has been planned to include three potentially productive zones (Zones 2 - 4 below) totalling 225' of net pay. The following descriptions and analysis is from data collected from wire-line logging, this data is more accurate than logging while drilling ("LWD") results given in the last update:

Zone 1 - (9,420' - 9,475' TVD)

This zone is 55' thick and was seen but untested in Kenai Loop # 1 ("KL # 1") well and consists of stacked, conglomeritic sandstones and is laminated. Wire-line logging indicates some gas in the zone; however, the pressure measurements indicate that the zone is too tight to be gas productive.

Zone 2 - (9,850' - 9,920' TVD)

This zone is 70' thick and is equivalent to the 10,000' productive zone in KL # 1 well and consists of stacked, partly conglomeritic sandstones and is laminated. The sand in the Kenai Loop # 3 well is approximately 100' high to the same zone in KL # 1 and appears to be gas productive with good porosity and permeability. This is one of the three zones to be flow tested.

The corresponding zone in KL # 1 was 90' thick with the top 35' being perforated and flow tested. This zone represented approximately 60% of Proven Reserves at the KL # 1 location.

Zone 3 - (10,160'-10,255' TVD)

This zone is 95' thick and is equivalent to the untested 10,300' zone in KL # 1 well and consists of stacked, massive, conglomeritic sandstone channel sandstones. The sand in Kenai Loop # 3 well is approximately 100' high to the same zone in KL # 1 well and appears to be gas productive with some good porosity and permeability. This is one of the three zones to be flow tested.

Zone 4 - (10,560'-10,620' TVD)

This zone is 60' thick and was below the drilling depth in KL # 1 well and appears to consist of stacked channels and is laminated. The sand has good porosity and permeability. Wire-line logging data was inconclusive and so it is planned to flow test this zone.

Flow testing is anticipated to take approximately 7-10 days to complete.

Contact

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