ELIXIR ENERGY LIMITED — Capital/Financing Update 2008

Jan 30, 2008

==> picture [562 x 89] intentionally omitted <==

ASX RELEASE – 31 JANUARY 2008

POMPANO PROJECT – SECOND WELL TO COMMENCE

Buccaneer Energy Limited (“Buccaneer” or “the Company”) is pleased to announce that given the success of Pompano SL 103229 # 1 Well the Company and its joint venture partners in the Pompano project have advised AnaTexas Offshore (“AnaTexas” or “the Operator”) to execute an option with Hercules Offshore, Inc (“Hercules”) to utilise Hercules Rig 152 to drill a second well at Pompano.

The Company has options over an additional 5 wells in the Pompano field, the first option well is SL 103230 # 1 and is to be drilled in Brazos BA 446‐L S/E4.

Hercules Rig 152 will be released from the current location at SL 103229 # 1 on finalisation of completion operations which is expected to be in approximately 14 days. It is expected that Hercules Rig 152 will be on location and spud SL 103230 # 1 within 7 days of this release.

SL 103230 # 1 will be drilled from a new caisson to be driven outboard, but immediately adjacent the “A” Platform. This will facilitate the retrofit and refurbishment of the “A” Platform simultaneously with the drilling of the well.

The above plan will allow for production to commence immediately after completion, assuming there are no unforeseen delays found during the retrofit operations, if SL 103230 # 1 is successfully completed.

The Pompano project has existing production facilities in place including the following:

• An existing 4‐pile production platform with over 50 MMCFD gas production handling capacity and other satellite structures connected by flowlines to the production platform, from which new wells can be drilled, completed and connected to rapidly initiate production and sales; and

• An existing gas gathering pipeline providing immediate access for gas production to the sales market.

==> picture [561 x 88] intentionally omitted <==

==> picture [561 x 89] intentionally omitted <==

The Participants in SL 103230 # 1 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

==> picture [119 x 48] 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 [560 x 89] intentionally omitted <==

==> picture [560 x 88] intentionally omitted <==

==> picture [561 x 88] intentionally omitted <==

==> picture [405 x 305] intentionally omitted <==

A picture of the “A” Platform located on the Pompano Project.

==> picture [561 x 88] intentionally omitted <==

==> picture [561 x 88] intentionally omitted <==

==> picture [561 x 86] intentionally omitted <==