ELIXIR ENERGY LIMITED — Capital/Financing Update 2008

Mar 11, 2008

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ASX RELEASE – 12 MARCH 2008

POMPANO PROJECT – COMMENCEMENT OF PRODUCTION

Buccaneer Energy Limited (“Buccaneer” or “the Company”) is pleased to announce that it has been informed by AnaTexas Offshore (“the Operator”) that production at the SL 103229 # 1 well commenced on Sunday 9 March 2008 (Central time) with gas flowing into the sales line.

As previously advised this is a dual completion well, allowing for two sand intervals to be produced simultaneously. The Operator has commenced production from the 6700A and B Sands simultaneously and is monitoring production as the rates stabilise to study performance during this commissioning phase.

This process is expected to take another 7‐10 days before production rates stabilise and a sustainable production rate is established, a further release will be made at that time.

These two sands are expected to produce at a combined rate of 6 – 7 million cubic feet per day and current performance has been as expected.

The Operator previously advised that it would be briefing an independent third party with all technical information in relation to SL 103229 # 1 well so a third party reserve report can be obtained. This process has been delayed whilst production has been established, a third party report is now expected by mid April.

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.

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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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