Buccaneer Has Second Gulf of Mexico Success

SYDNEY, Australia--(Business Wire)--
Australian company Buccaneer Energy Limited (ASX:BCC) today
announced its second successful well at its Pompano Project located 11
kilometres off the coast in the Gulf of Mexico, Texas in 55 feet of
water.

ASX-listed Buccaneer Energy Limited ("Buccaneer" or "the Company")
announced today that the second well in the Pompano field was
successfully tested in two gas-productive sands totalling 74 feet
(22.4 metres) of net gas pay found in the well. Buccaneer has a 65%
working interest in the well.

This is a dual completion well, allowing for two sand intervals to
be produced simultaneously. The well's Operator, AnaTexas Offshore,
plans to put the well into production in the next 10 days.

"These two sands are expected to produce at a combined rate of 7
million cubic feet per day plus 30 barrels of high quality
condensate," says Director Mr Dean Gallegos. "We're pleased to report
that the level of production surpasses our expectations of 6.0 million
cubic feet per day."

Notably, the pressure reading from the E Sand was estimated to be
a 4,820 psi bottom hole pressure (BHP), which the Operator advises is
a near-virgin pressure. With the pre-drill estimate of 2,500 psi BHP,
it is evident that the E Sand has repressurised since it was last
drilled in 1982. According to the Operator, this increased BHP in the
E Sand will have a positive impact on recoverable reserves.

This successful well follows on from the Pompano # 1 well that was
drilled in January 2008 and was put into production in mid March 2008
at the rate of 7 million cubic feet per day. As a result of the strong
market for gas in the United States, it is anticipated that the two
wells will generate net revenue of US$1.3 to US$1.5 million per month
for Buccaneer at the current gas price.

Corporate overheads are running at approximately US$250,000 per
month meaning the Company will be profitable, the Company has a
current market capitalization of approximately A$37.0 million

"We choose the Pompano project as our first because the
infrastructure is already was already in place," Mr. Gallegos stated,
"The project has two off-shore platforms and sales pipelines and this
has saved us approximately US$15 million in development costs and 6-9
months of time and the benefits of having this infrastructure in place
are now bearing fruit."

"Buccaneer has a 65% working interest in the Pompano project
including these first two wells, which is relatively a high level
compared to other companies in similar arrangements. This means all
successful wells that are drilled at the project have a bottom line
financial impact for our shareholders. We believe that if it is a
development project and the risk is relatively low compared to an
exploratory project then the working interest should be higher."
stated Mr. Gallegos.

"Going forward there are at least another four other drilling
locations at the Pompano Project, Buccaneer hopes to drill at least
two of these this calendar year. All of the wells we will drill at
Pompano will have at least 2P (proven and possible) reserves
associated with them, therefore we have a high degree of confidence
that we will be successful in a high percentage of future wells at the
project.

According to Mr. Gallegos, Buccaneer's strong management team is
one of the key reasons for the Company's prime position within this
industry.

"Our management team is 100% based in the US in Houston, Texas,"
Mr. Gallegos stated, "Combined they have around 175 man years of
experience in the oil and gas industry both locally and
internationally. By being physically located in the US they have the
ability to monitor the current opportunities and acquire the ones that
conform to Buccaneer's requirements in a timely fashion."

Pompano Project - Background

The Pompano gas field lies offshore in the Gulf of Mexico, in
Brazos Block 446-L SE/4, which is approximately 90 miles southwest of
Houston, Texas. The field is approximately 11 kilometres offshore in
55 feet of water.

The Pompano gas field was discovered in 1966 and produced over 120
billion cubic feet of gas prior to being shut-in in 2003. The Pompano
Project is essentially a re-development of the Pompano gas field with
new well locations based on modern 3D seismic data.

Well #1 was directionally drilled in January 2008 from the field's
existing "B" satellite platform to 7,825 feet measured depth. Well #1
intersected three gas bearing sands located between 6,700 feet and
7,426 feet measured depth ("MD") which were successfully flow tested.
Production commenced from this well in early March 2008 from the B and
6700A sands.

Well #2 spudded in late February 2008 and was directionally
drilled from the field's existing "A" Production Platform. Well #2
encountered several gas bearing sands between 7,300 feet and 8,980
feet MD. The well has been completed using a dual string completion
over the B and E sands so as to enable concurrent production of these
two zones. It is expected Well #2 will be placed on production around
the end of April 2008.

The Pompano Project is using the field's extensive existing
production and pipeline facilities, which has achieved a significant
capital cost saving and a reduction in time to production for the
project.

About Buccaneer

Buccaneer Energy's wholly owned subsidiary Buccaneer Resources is
based in Houston, Texas and is an upstream oil and gas company. It
specialises in the development and expansion of behind-pipe proved and
probable reserves and low-risk exploration plays with growth
potential.

Buccaneer's growth strategy is focused on the progressive
expansion of oil and gas production and reserves by acquiring
significant working interests in low-cost, low-risk development
properties that possess significant undeveloped upside.

Buccaneer Energy Limited
Dean Gallegos, 0416 220 007 or 02-9233 2520
Director

Copyright Business Wire 2008