ELIXIR ENERGY LIMITED — Capital/Financing Update 2008

Mar 27, 2008

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ASX RELEASE – 28 MARCH 2008

DRILLING UPDATE ‐ POMPANO PROJECT

As advised in our drilling update on 25 March 2008 Buccaneer Energy Limited (“Buccaneer” or “the Company”) is please to advise that it has been advised by AnaTexas Offshore (“AnaTexas” or “the Operator”) that the 5 ½“ casing has been successfully run, cemented and pressure tested to the current depth of 8,627 measured depth.

A decision has been made to drill ahead into the exploratory F and G sands.

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:

Hydrocarbon Indications:

Targets:

3.00pm 27 March 2008 (US Central Daylight time) 7.00am 28 March 2008 (NSW Daylight time)

8,663 feet MD

5 ½“casing has been successfully run, cemented and pressure tested to 8,627 feet MD, drilling ahead.

Logging and evaluation is ongoing. The Operator has advised that the B sand, C sand and E sand appear to be commercial. The E sand was the main objective prior to drilling. As previously advised the Total Depth will be 9,150 feet MD, or 8,545 feet TVD.

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 this fault block.

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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.

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

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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