ELIXIR ENERGY LIMITED — Capital/Financing Update 2008

May 5, 2008

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ASX RELEASE – 6 MAY 2008

SECOND POMPANO WELL IN PRODUCTION

Buccaneer Energy Limited (“Buccaneer” or “the Company”) is pleased to announce SL 103230 # 1 was successfully placed onto production on 1 May 2008 (US Central time) and has stabilised at a rate of approximately 8.0 million cubic feet a day. The two Pompano wells are now producing at approximately 14.6 million cubic feet per day.

The individual sand intervals for SL 103230 # 1 are producing at the following rates:

• B Sand 1.0 million cubic feet per day.

• E Sand 7.0 million cubic feet per day and 30 barrels of high quality condensate per day.

SL 103229 # 1 Production Update

The first Pompano well (SL 103229 # 1) continues to perform to expectations at approximately 6.6 million cubic feet per day.

The individual sand intervals for SL 103229 # 1 are producing at the following rates:

• 6700A Sand 2.7 million cubic feet per day and 3 barrels of condensate per day.

• B Sand 3.9 million cubic feet per day and 2 barrels of condensate per day.

Financial Impact

The following information is provided to allow shareholders to appreciate the financial impact of production of production from the two Pompano wells on the Company.

The net revenue amounts do not constitute a forecast for the Company. Corporate and administrative operating overheads need to be paid out of any net revenue received by the Company from gas sales.

Assumed Gas Sales Price: US$9.00 per thousand cubic foot of gas Assumed Condensate Price: US$100.00 per barrel Total 2 well Production Rate: 14.6 million cubic feet per day Buccaneer share of Net Revenue: US$1,660,000 per month AUD$1,766,000 per month*

Gas traded on NYMEX is currently trading for approximately US$10.70 per thousand cubic foot.

• US$1.00 = AUD$1.064

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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.

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.

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.

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