Buccaneer Energy Limited (ASX:BCC) Jack Up Rig Shipyard Update

Sydney, Dec 21, 2011 AEST (ABN Newswire) - Buccaneer Energy Limited (ASX:BCC) ("Buccaneer" or the "Company") is pleased to advise that the Company's 50 per cent owned subsidiary Kenai Offshore Ventures, LLC has executed a Repair Contract with Keppel FELS Shipyard in Singapore for the repair and modification of the jack-up rig, Endeavour.

The Endeavour is currently in dry dock undergoing the first stage of the work program, with completion expected in the next 10 days. The second stage will commence in January 2012 and will consist of upgrades to the accommodation quarters, blasting and painting of surfaces, winterising, and refurbishing of tanks and piping systems.

Concurrently, approximately 30 other individual contractors are in various stages of assessing and/or dismantling drilling equipment for assessment, to ascertain what work needs to be completed. In the majority of cases, this work is being done by the original equipment manufacturers, most of whom have workshops in Singapore.

This work, when completed, will bring the Endeavour back to full operational capability and capable of drilling in the Cook Inlet, Alaska.

Endeavour's Capabilities

The Endeavour jack-up rig was selected following a rigorous global search process. Its existing capabilities make it suitable for most water depths that exist in the Cook Inlet and northern Alaskan waters.

These capabilities include:

- The ability to operate in water depths up to 300 feet;

- Constructed of -10o Celsius rated steel allowing it to work safely in the wide environmental envelope that exists in the Arctic, including the Chukchi and Beaufort Sea which are located offshore the North Slope;

- Two sets of blow out protectors ("BOPs"), both 10,000 and 15,000 PSI, giving it capacity to drill high pressure horizons that exist in the Cook Inlet;

- Cantilever beam extensions that enhance its ability to work over existing platforms in the Cook Inlet to undertake drilling and repair operations; and

- High variable deck load rating of 8,300 KLBS which enable it to operate with extra equipment and materials onboard, should support services be limited.

Contact

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