Buccaneer Energy Limited (ASX:BCC) Announce Selection of Drilling Contractor

Sydney, Oct 7, 2011 AEST (ABN Newswire) - Buccaneer Energy Limited (ASX:BCC) is pleased to announce that Houston based Archer Drilling, LLC ("Archer") has been selected as the preferred operator of the Adriatic XI. This selection comes after a competitive tender process in which Archer demonstrated significant experience and expertise in operating a large number of onshore and offshore rigs and platforms.

KOV will now proceed and negotiate individual contracts with Archer to:

- Project manage the shipyard modifications to the Adriatic XI jack-up rig, which is to be renamed "Endeavour";

- Manage the mobilisation process from Singapore to the Cook Inlet; and

- Operate the rig in the Cook Inlet on behalf of Buccaneer Offshore Operations, LLC ("BOO"), a wholly owned subsidiary of Buccaneer that will execute a Bare Boat Charter Agreement with KOV.

In the interim, Archer has already mobilised a team onto the Adriatic XI at its cold stacked location to commence detailed engineering scoping work to finalise shipyard modification budgets and scheduling.

In 2008, Archer's wholly owned subsidiary Rig Inspection Services completed inspections and engineering scoping work on the Adriatic XI on behalf of its current owner.

This proposed scoping work is expected to take approximately 21 days to complete.

Contact

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