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Thursday, March 31, 2011

Buccaneer to Meet AIDEA for Rig Usage Offshore Alaska

Buccaneer to Meet AIDEA for Rig Usage Offshore Alaska

Thursday, March 31, 2011
Buccaneer Energy Ltd.
Buccaneer advised that the board of the Alaskan Industrial Development and Export Authority (AIDEA) is due to meet on April 1, 2011 to consider and vote on the investment by AIDEA of up to US $30.0 million to acquire a jackup rig for use in the Cook Inlet and other Alaskan waters.

AIDEA's involvement will be as a joint owner in the jackup rig to be acquired. Therefore the proposed investment by AIDEA does not involve the issuance of any securities by the Company.

Extensive due diligence has been undertaken by AIDEA management and a Joint Ownership Agreement (JOA) between the Company's subsidiary Kenai Offshore Ventures, LLC and AIDEA has been negotiated. The JOA contains Conditions Precedent that must be finalized before draw down of the AIDEA investment. The Company is confident that these Condition Precedents can be met in a timely manner.

AIDEA's management have made a recommendation to the board of AIDEA that it views participation on the terms and conditions contained in the JOA is in the best interests of AIDEA and recommends approval of the resolution to proceed.

If the resolution to proceed is approved by the AIDEA board it is anticipated that the JOA will be executed in the week commencing April 4, 2011. Further details will be released at that time.

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