ELIXIR ENERGY LIMITED — Capital/Financing Update 2008

Apr 7, 2008

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ASX RELEASE – 8 APRIL 2008

DRILLING UPDATE ‐ POMPANO PROJECT

Buccaneer Energy Limited (“Buccaneer” or “the Company”) is pleased to announce progress of SL 103230 # 1 which was spudded on 24 February 2008.

All reported depths are below the Rotary Table Kelly Bushing on the rig floor in Measured Depth (“MD”) and/or True Vertical Depth (“TVD”) since the well is being directionally drilled to a bottom location approximately 2,342 feet to the southeast of the surface location:

Report Date:

Current Depth:

Progress:

3.00pm 7 April 2008 (US Central Daylight time) 6.00am 8 April 2008 (NSW Daylight time)

8,980 feet MD / 8,446 feet TVD.

Buccaneer and its partners have elected to complete this well in the B and E sands, as a dual completion with an alternate‐selective completion in the C Sand.

These objective sands were found to be of commercial quality as expected. As such, completion operations were commenced last week and are currently underway. Expectations are to produce the combined sands at 6‐7 million cubic feet per day. The well is expected to be placed on production by the end of April 2008.

Hydrocarbon Indications:

The F and G sands were gas bearing in this well however they were thin and due to the small diameter of the well bore (4 ½”) it was decided to proceed with the B and E completion. The information gained on the F and G sands will assist to determine the best way to target these zones in other fault blocks in the field's redevelopment program.

It is Buccaneer’s belief that these sands remain likely to hold commercial reserves in other fault blocks to be drilled in the future yielding a further potential impact on the field's net value to the Company.

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Targets:

The well was designed to test and develop the B‐2 and C Sands up dip of a well that produced from the B and C Sands.

The well is also designed to test the E Sand in an undrilled fault block plus the F and G Sands in a trapping position for the first time in the SE/4 of Brazos Block 446‐L.

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.

While operations are underway, the Company will issue routine drilling releases every Tuesday or at any such time that material matters require an earlier release.

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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