Buccaneer provided the following update on the progress of the Kenai Loop # 3 well which is the second well in the Kenai Loop development program:

•Time: 9am (Sydney) September 28/ 3pm (Anchorage) September 27, 2011. •Depth: 11,000' Total Vertical Depth (TVD). •Activity: Drilling operations have been completed. Logging While Drilling (LWD) tools have been laid down, additional logging with wire-line tools will commence shortly. Results: The LWD tools have identified up to 345' of potential gross pay interval in the Upper Tyonek Formation between 9,000' and 11,000'.

Within the above gross pay LWD logs have indentified pay from 4 zones totalling approximately 285' of gross thickness. A brief description of these zones is as follows:

•Zone 1 is approximately 45' thick and comprised of multi-storied, conglomeritic sandstone with logs demonstrating porosity and permeability. •Zone 2 is approximately 70' thick and comprised of multi-storied sandstone which is partly conglomeritic with logs demonstrating porosity and permeability. •Zone 3 is approximately 100' in gross thickness and is made up of 3 massive, conglomeritic, stacked channel sandstones. The upper channel is the thickest with 35 – 40' of logged porosity and permeability. •Zone 4 is approximately 70' in gross thickness and comprised of multi-storied, conglomeritic sandstones and logs demonstrating porosity and permeability. •Correlation of the above zones to the identified pay in the Kenai Loop # 1 well is ongoing.

On completion of wire-line logging, wire-line formation pressure measurement and collection of fluid samples will be undertaken. Upon the recovery of the fluid samples, sidewall cores will be attempted to conclude the wire-line evaluation. After analysis of the data well testing operations will commence.

Tags: Buccaneer Energy Ltd.