Buccaneer to Modify Cosmopolitan Oil Spill Clean-Up Plan

Buccaneer Energy Limited advises that the Alaskan Oil and Gas Conservation Commission (“AOGCC”) has determined that the proposed Cosmopolitan State # 2 well, which is planned to be drilled to 5,685’, could potentially penetrate formations that are capable of flowing oil.

Consequently, a major modification to the Company’s Offshore C-Plan will be required. A C-Plan is an oil spill clean-up plan.

A major modification to the current C-Plan can take up to an additional 120 days due to additional studies required as well as the requirement to give the public an opportunity to comment on the proposed changes. The Company has discussed the AOGCC decision with its Cosmopolitan joint venture partner, BlueCrest Energy Inc. (“BlueCrest”), and it is the intention of the joint venture to file an administrative appeal on the AOGCC decision.

Unless the decision is reversed on appeal or early drilling is allowed as an extension to the summer drilling season, offshore drilling operations in the Cook Inlet cannot commence until 15 April 2014, the anticipated start of the summer drilling season. The Endeavour jack-up rig will remain at Port Graham until that time.

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Press Release, January 07, 2014