ELIXIR ENERGY LIMITED — Capital/Financing Update 2008

Mar 5, 2008

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ASX RELEASE – 6 MARCH 2008

POMPANO PROJECT – FLOW LINE TESTING & PRODUCTION UPDATE

Buccaneer Energy Limited (“Buccaneer” or “the Company”) is pleased to announce that it has been informed by AnaTexas Offshore, Inc (“the Operator”) that the flowlines between the ‘B’ Caisson and the ‘A’ Production Platform were successfully pressure tested and connected to the dual completion, SL 103229 Well # 1.

The remaining work to be conducted in completing the retrofitting of the ‘B’ Caisson and ‘A’ Production Platform for production consists of additional piping between processing vessels and blasting and painting of the structures, equipment and external fittings, to be accomplished after production commencement.

Importantly the Operator has confirmed that there will be no delay initiating production due to flow line repair or replacement.

As previously advised this is a dual completion well, allowing for two sand intervals to be produced simultaneously. The Operator is planning to place the 6700A and B Sands into production as soon as A platform interconnecting piping is completed and tested, which is expected to be in the next 7 days.

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.

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

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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.

Pompano Project – Background

The Pompano gas field lies offshore in the Gulf of Mexico, in Brazos Block 446‐L SE/4, which is approximately 90 miles southwest of Houston Texas. The field is approximately 7 miles offshore in 55 feet of water.

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Schematic: Pompano Field Layout – reproduced with the permission of Elixir Petroleum Limited.

The Pompano gas field was discovered in 1966 and produced over 120 billion cubic feet of gas prior to being shut‐in in 2003. The Pompano Project is essentially a re‐development of the Pompano gas field with new well locations based on modern 3D seismic data.

Well #1 was directionally drilled in January 2008 from the field’s existing “B” satellite platform to 7,825 feet measured depth. Well #1 intersected three gas bearing sands located between 6,700 feet and 7,426 feet measured depth which have been successfully flow tested.

The Pompano Project will use the field’s extensive existing production and pipeline facilities, which will achieve a significant capital cost saving and a reduction in time to production for the project.

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Picture 1 ‐ A picture of the simultaneous activity in the Brazos 446L Field. The “Hercules Rig 152” jacked up and drilling the SL 103230 #1 Well adjacent the Brazos 446 “A” Platform, and the Liftboat “Petite” also working on the platform retrofitting and refurbishment.

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Picture 2 ‐ A picture of the Liftboat “DuLarge” working at the “B” Caisson structure retrofitting and refurbishing the flow line risers and the piping connecting same to the SL 103229 #1 discovery well. Picture 1 was taken from that location.