second pompano well in production

ASX RELEASE - 6 MAY 2008

SECOND POMPANO WELL IN PRODUCTION

Buccaneer Energy Limited ("Buccaneer" or "the Company") is pleased to announce SL 103230 # 1 was successfully placed onto production on 1 May 2008 (US Central time) and has stabilised at a rate of approximately 8.0 million cubic feet a day. The two Pompano wells are now producing at approximately 14.6 million cubic feet per day.

The individual sand intervals for SL 103230 # 1 are producing at the following rates:

**B Sand 1.0 million cubic feet per day.

**E Sand 7.0 million cubic feet per day and 30 barrels of high quality condensate per day.

SL 103229 # 1 Production Update

The first Pompano well (SL 103229 # 1) continues to perform to expectations at approximately 6.6 million cubic feet per day.

The individual sand intervals for SL 103229 # 1 are producing at the following rates:

**6700A Sand 2.7 million cubic feet per day and 3 barrels of condensate per day.
**B Sand 3.9 million cubic feet per day and 2 barrels of condensate per day.

Financial Impact

The following information is provided to allow shareholders to appreciate the financial impact of production of production from the two Pompano wells on the Company.

The net revenue amounts do not constitute a forecast for the Company. Corporate and administrative operating overheads need to be paid out of any net revenue received by the Company from gas sale.

Assumed Gas Sales Price: US$9.00 per thousand cubic foot of gas
Assumed Condensate Price: US$100.00 per barrel
Total 2 well Production Rate: 14.6 million cubic feet per day

Buccaneer share of Net Revenue: US$1,660,000 per month
AUD$1,766,000 per month*

Gas traded on NYMEX is currently trading for approximately US$10.70 per thousand cubic foot.


* US$1.00 = AUD$1.064