Energy: Buccaneer Energy finalises $US5mln Australian credit facility

New funds for Buccaneer to fund development of projects

HOUSTON - Buccaneer Energy is pleased to announce that it has finalized a $5 million credit facility with Macquarie bank in Australia.

This initial tranche of funding is part of a significantly larger facility being negotiated. The capital will supplement the company's excellent cash flow coming from the two recently drilled wells producing on the Pompano project.

All the funds will be used to continue development of Buccaneer's Pompano and other projects.

Macquarie bank is one of the largest banks in Australia and is an ideal partner for Buccaneer Energy.

In addition to the credit line, Macquarie has received a small number of unlisted options in the company that mature at a $0.40 share price.

"Using Macquarie to supplement our cash flow from production is just one more step in executing our business plan," said Curtis Burton, CEO of Buccaneer Energy.

"Our current cash flow from production, combined with external capital, will allow Buccaneer to rapidly diversify its production and augment its bottom line much more rapidly than simply progressing development on the basis of cash flow."

Buccaneer Energy is off to a running start. After going public in November 2007, the company successfully drilled two wells and put them into production within the first six months of operation as a public company.

The company also has outlined an aggressive drilling program that could include up to eight more wells before the end of 2008.

For more information on Buccaneer and upcoming projects, visit www.BuccEnergy.com.

About BuccaneerBuccaneer Energy's wholly owned subsidiary Buccaneer Resources is based in Houston, Texas, and is an upstream oil and gas company. It specializes 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 possessing significant undeveloped upside.

About MacquarieMacquarie Group Limited (formerly Macquarie Bank Limited) is an Australian merchant bank and financial services group that provides a broad range of products and services to investors, corporations and government.

Its global headquarters are located in Sydney, and it is listed on the Australian Securities Exchange (ASX). It is the only large, majority Australian-owned investment bank.

Buccaneer Resources, HoustonKen Hooper, 713-780-1243

Energy: 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 6700 A 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