Drilling Commenced at Buccaneer's Kenai Loop Well

Buccaneer Energy Limited advised that the Kenai Loop # 4 well spud on September 11, 2012 (U.S. time).

The Kenai Loop # 4 well will target 7 stacked potential pay sands in the Tyonek formation and will have a bottom-hole location approximately 2,000 feet north-west of the successful Kenai Loop # 1. All of the 7 stacked potential pay sands have been identified and mapped using data from the recent 3D seismic interpretation and all have hydrocarbon indicators.

The targeted pay sands within the Tyonek include the 9,700 and 10,000 feet sands that are currently producing 5.0 MMCFD on a 5/64" choke in the Kenai Loop # 1 well and therefore the Company has a high level of confidence in the Kenai Loop # 4 well location.

The Kenai Loop # 4 well is planned to drill deeper than the Kenai Loop # 1 (10,660 feet) , and is anticipated to take 35-40 days to drill with an additional 10 days for testing. The Company will give drilling progress reports each Wednesday and additional reports as required to meet its continuous disclosure obligations.

An additional 11 new seismic gas anomalies have been identified from the stacked pays in the shallow Sterling and deeper Tyonek formations, all of which have hydrocarbon indicators. The Company will risk assess each of these anomalies prior to finalizing a future drilling program.