ELIXIR ENERGY LIMITED — Capital/Financing Update 2008

Apr 23, 2008

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ASX RELEASE – 24 APRIL 2008

POMPANO PROJECT – FLOW TEST RESULTS FOR SL 103230 # 1 Well

Buccaneer Energy Limited (“Buccaneer” or “the Company”) is pleased to announce SL 103230 # 1 was successfully tested in two gas productive sands totalling 74 feet (22.4 metres) of net gas pay found in the well.

This is a dual completion well, allowing for two sand intervals to be produced simultaneously. AnaTexas Offshore (“the Operator”) is planning to place the B and E Sands into production in the next 10 days. These two sands are expected to produce at a combined rate of approximately 7.0 million cubic feet per day plus 30 barrels of high quality condensate, surpassing the Company’s expectations of 6.0 million cubic feet per day.

The individual sand test results are as follows:

B Sand

Formation Top: 7,287 feet (Measured Depth). Net Gas Pay: 44 feet net gas on water (7,368 feet MD). Final Flow Rate: Gas ‐ 820 thousand cubic feet per day on a 22/64” choke.

E Sand – Main Objective

Formation Top: 8,301 feet (Measured Depth). Net Gas Pay: 30 feet. No apparent water level. Final Flow Rate: Gas ‐ 6.1 million cubic feet per day on a 16/64” choke. Condensate – 30 barrels per day of high quality condensate.

Of particular importance was the pressure reading from the E Sand which is estimated to be a 4,820 psi bottom hole pressure (BHP), which the Operator advises is a near virgin pressure. The pre‐drill estimate was a 2,500 psi BHP, it is evident that the E Sand has re‐pressurised since it was last drilled in 1982. The increase BHP in the E Sand will have a positive impact on recoverable reserves.

Additionally, the E Sand is a primary target in the anticipated third well (SL 103230 # 4) in the Pompano redevelopment program. The Independent Expert in the Company’s September 2007 prospectus attributed a 2P reserve of 3.6 billion cubic feet (BCF) and 3P of 6.5 BCF to the E Sand in the SL 103230 # 4 well, the major cause of difference being if the sand had re‐pressurised or not.

Although the 6700A Sand (8 feet of Net Gas Pay) did encounter a commercial gas interval in this well, it was not production tested in this well. This sand is a target in the SL 103230 # 4 well mentioned above, the location of that well will mean that the maximum amount of reserves will be drained from that location rather than this location.

The C Sand (12 feet of Net Gas Pay) was also tested but did not flow gas and was abandoned. The non‐commercial nature of this sand will have little effect on the total recoverable reserves from this well.

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The Operator is currently working with an independent third party to finalise a reserve report for both the SL 103229 # 1 and SL 103230 # 1 wells, this reserve report will become available in 2‐3 weeks.

The resulting reserve report and value projection from this well is expected to contribute significantly to the Company with its 65.0% working interest in this well.

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.

This is the final routine release for this well. 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.

This report contains some references to forward looking assumptions, estimates and outcomes. These are uncertain by nature and no assurance can be given by Buccaneer Energy that its expectations, estimates and forecast outcomes will be achieved.

Information contained in this report concerning the Pompano project was compiled from information provided by AnaTexas Offshore, Inc. Information on the above mentioned project was reviewed by Chief Exploration Officer for Buccaneer Resources, Neville Henry, B.A. Honours in geology from Macquarie University (Sydney, Australia) and who has had more than 33 years experience in petroleum geology. Mr Henry has consented to the inclusion in this report of the technical matters and information herein in the form and context in which it appears.

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