ELIXIR ENERGY LIMITED — Capital/Financing Update 2008

Feb 4, 2008

==> picture [592 x 94] intentionally omitted <==

ASX RELEASE – 5 FEBRUARY 2008

DRILLING UPDATE ‐ POMPANO PROJECT

Buccaneer Energy Limited (“Buccaneer” or “the Company”) is pleased to announce progress of SL 103229 # 1.

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 2,000 feet to the northwest of the surface location:

Report Date: 06.00am 04 February 2008 (US Central time) 23.00pm 04 February 2008 (NSW Daylight time) Current Depth: 7,821 feet MD Progress: 7.625” production casing has been run and cemented. Preparing to perforate the well for production testing. Hydrocarbon Indications: Evaluation is ongoing. Targets: The Operator has advised that the 6700A sand, A sand and B sand appear to be commercial. The B sand was the main drilling objective prior to spudding the well.

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.

==> picture [592 x 93] intentionally omitted <==

==> picture [584 x 97] intentionally omitted <==

For further information please contact Dean Gallegos on 0416 220 007, alternatively visit the Company’s website at www.buccenergy.com.

Yours faithfully BUCCANEER ENERGY LIMITED

==> picture [127 x 51] intentionally omitted <==

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.

==> picture [584 x 98] intentionally omitted <==

==> picture [584 x 96] intentionally omitted <==