ELIXIR ENERGY LIMITED — Capital/Financing Update 2008

Feb 17, 2008

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ASX RELEASE – 18 FEBRUARY 2008

POMPANO PROJECT – FLOW TEST RESULTS

Buccaneer Energy Limited (“Buccaneer” or “the Company”) is pleased to announce SL 103229 # 1 was successfully tested in three gas productive sands found in the well. The individual sand test results are as follows:

6700A Sand

Formation Top: 6,420 feet. Gross Sand Interval: 15 feet. No apparent water level. Final Flow Rate: 1.501 million cubic feet per day on a 12/64” choke.

A Sand

Formation Top: 6,639 feet. Gross Sand Interval: 7 feet. No apparent water level. Final Flow Rate: 1.430 million cubic feet per day on a 12/64” choke.

B Sand – Main Objective

Formation Top: 6,738 feet. Gross Sand Interval: 72 feet. No apparent water level. Final Flow Rate: 5.342 million cubic feet per day on a 26/64” choke.

This is a dual completion well, allowing for two sand intervals to be produced simultaneously. AnaTexas Offshore (“the Operator”) is planning to place the 6700A and B Sands into production as soon as the platform retrofit is completed and monitor production as the gas rates may increase as all load water lost to the sands during completion is produced back and water rates decline.

These two sands are expected to produce at a combined rate of 6 – 7 million cubic feet per day.

It is worth noting that the last well that produced the B Sand in this block was the Shell SW/4 #3. It cumulated 4.0 BCF of production of gas and went off production in March 1989. This well tested at 3.2 million cubic feet per day upon completion but produced at rates up to 5.2 million cubic feet during its production life. The current well has been drilled 114 feet up‐dip to that well and the pressure was recorded as being 80% of virgin pressure.

The Operator also reports progress is being made retrofitting and refurbishing the "A" Production Platform. Work will begin on the "B" caisson structure where the well is located as soon as the drilling rig jacks down and moves to the next well location. That move is expected to take place this week subject to weather conditions.

Subject to weather conditions flowline testing is to be undertaken in the next 2 weeks, after which we can advise on the expected commencement of production from this well.

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The Operator will 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 by mid March.

The resulting reserve report and value projection is expected to contribute significantly to the Company with its 65.0% working interest in this well, relative to the Company’s current size. The Company will update its shareholders as to financial impact once the Operator has finalised gas sales contracts and the above third party report has been completed.

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 releases every Tuesday or at any such time that material matters require an earlier release. The Company will not however make a routine release tomorrow.

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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This report contains some references to forward looking assumptions, estimates and outcomes. These are uncertain by nature and no assurance can be given by Buccaneer Energy that its expectations, estimates and forecast outcomes will be achieved.

Information contained in this report concerning the Pompano project was compiled from information provided by AnaTexas Offshore, Inc. Information on the above mentioned project was reviewed by Chief Exploration Officer for Buccaneer Resources, Neville Henry, B.A. Honours in geology from Macquarie University (Sydney, Australia) and who has had more than 33 years experience in petroleum geology. Mr Henry has consented to the inclusion in this report of the technical matters and information herein in the form and context in which it appears.

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