ELIXIR ENERGY LIMITED — Capital/Financing Update 2008

Mar 10, 2008

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ASX RELEASE – 11 MARCH 2008

DRILLING UPDATE ‐ POMPANO PROJECT

Buccaneer Energy Limited (“Buccaneer” or “the Company”) is pleased to announce progress of 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: 3.00 pm 10 March 2008 (US Central time) 8.00 am 11 March 2008 (NSW Daylight time)

Current Depth:

Progress:

8,180 feet MD

Preparing to run 7 5/8” intermediate casing, this process is expected to take 96 hours before drilling ahead to target depth.

Hydrocarbon Indications:

Hydrocarbon shows will only be reported after logging and evaluation of the well after reaching the Total Depth. The well will take approximately 4 weeks to drill to the programmed Total Depth of 9,360 feet MD, or 8,735 feet TVD.

Targets:

The well is 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 UCCANEER 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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