Buccaneer Gets ADEC Nod for Drilling Offshore Cook Inlet

Buccaneer advised that the Alaska Department of Environmental Conservation ("ADEC") has reviewed Buccaneer's February 1, 2011 permit application for the offshore Cook Inlet Exploratory Drilling project and has issued a preliminary decision to approve the permit application.

As the Air Quality Permits are the longest lead time permits to obtain, taking a minimum 180 days, this milestone is an important step towards drilling the Company's offshore Cook Inlet projects.

The Company already held Air Quality Permits for two drilling locations in the offshore Cook Inlet, one at each of the Southern Cross Unit and North West Cook Inlet Unit. This application was in respect to an Air Quality Permit for an additional two drilling locations, one at each of the Southern Cross Unit and North West Cook Inlet Unit.

Extensive air modeling at each drilling location was required as part of the Air Quality Permitting process. This air modeling is required to assess the impact of emissions on the environment from a drilling rig and support vessels at the particular drilling location.

ADEC is now providing opportunity for a 30 day public comment period which expires on May 2, 2011.

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