ELIXIR ENERGY LIMITED — Capital/Financing Update 2008

Oct 14, 2008

ASX RELEASE – 15 OCTOBER 2008

DRILLING & OPERATIONAL UPDATE ‐ POMPANO PROJECT

Buccaneer Energy Limited (“Buccaneer” or “the Company”) advises that it has reached a total measured depth of 8,315 feet in well SL 103230 # 4 at the Pompano Project, the well has been logged and results evaluated.

The 6700’ Sand encountered productive gas with a total net pay of 12 feet. Below the 6700 Sand the B, C and E Sands were developed but lower than expected structurally after the pre drill structural interpretation proved not to be accurate and therefore not commercial in this position. The E Sand had good hydrocarbon shows but was wet.

The well will be temporarily suspended until the data gathered from drilling and logging can be fully evaluated and reworked into a revised 3D seismic interpretation. A decision will then be made if a completion of the 6700 Sand is warranted and/or a sidetrack well drill to access adjacent targets.

Pompano SL 103229 # 1

The above well was the first well in the Pompano re‐development program and has recently experienced declining production rates. The major cause of this decline has been the result of a failed cement job between the B Sand (gas bearing and productive) and the lower B‐2 Sand (water bearing). Over recent days the B‐2 water production has increased inhibiting gas production and leading to the well being shut‐ in.

While this well was shut‐in during Hurricane Ike, reservoir pressures were measured and were in accordance with predicted reserves for both the upper (6700 Sand) and lower (B Sand) completions.

To rectify this problem a remedial work‐over will be conducted so as to restore production to pre‐decline levels of 5‐7 million cubic feet per day. A work‐over rig is currently being sourced to commence this work as soon as possible.

Pompano SL 103230 # 1

This well is performing to expectations.

For further information please contact Dean Gallegos on 0416 220 007 or 02 9233 2520, alternatively visit the Company’s website at www.buccenergy.com.

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The Participants in this well are as follows:

Participant	Working Interest
Buccaneer Resources*	65.0%
Elixir Petroleum	25.0%
Baron Petroleum+	7.5%
Streamline Exploration+	2.5%

• A wholly owned subsidiary of Buccaneer Energy Limited

• Affiliated with AnaTexas Offshore, Inc. Baron Petroleum and Streamline Exploration are members of Millennium Explorer, LLC., the generator of the Pompano project.

Yours faithfully BUCCANEER ENERGY LIMITED

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Mr Dean Gallegos Director

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.