Buccaneer Energy Limited (ASX:BCC) Kenai Loop No.3 Well Drilling Report No.6

Sydney, Oct 12, 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) 12 October / 2.00pm (Anchorage) 11 October 2011.

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

Activity: On site delays have meant that testing only commenced late Sunday 9 October. At this time only a small section within Zone 3 having been perforated, any future material results will be released after analysis is completed.

Previous

Results: The following descriptions and analysis was from data collected from wire-line logging:

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 another 7-10 days to complete.

Contact

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