ABN Newswire

Empire Energy (OTCMKTS:EEGC) Engages Wedgewood Investment Group of New York, to prepare a $998 Million Asset Backed Secured Bond

newsroom@abnnewswire.net — Mon, 20 May 2013 14:01:39 GMT

Empire Energy Corporation International (OTCMKTS:EEGC), announced today the engagement of Wedgewood Investment Group of New York effective May 16, 2013.

Wedgewood has been retained to prepare the documentation and filings to produce a secured, asset backed, 5 year Bond in the amount of Nine Hundred and Ninety Eight Million ($998,000,000.) dollars, bearing a 7% coupon. The asset being used to secure the Bond is identified in the Senergy, Competent Persons Report (CPR), a copy of which is available on Empire's website. The completed package will include; Due Diligence, Preparation of the PPM and Prospectus, Legal Review, Placement Agent appointment, the Filing of the 144A, Registration of ISN and CUSIP Numbers, Transfer Agent appointment and preparation of documentation for listing the Bond on an exchange.

Malcolm Bendall, CEO of Empire Energy stated; ""We have taken this route as part of our overall strategic plan to obtain the necessary additional funds to finally take our Tasmanian project to reality. We are pleased that the Asset Backed Bond is available to us as an alternative to trying to raise money through the public markets."

Under the terms of Wedgewood's engagement, the firm will be paid a retainer of $50,000.00 with the balance of $10,000.00 being paid on the delivery of the completed Bond package.

Cautionary Note Regarding Forward-Looking Statements

Safe Harbor: Pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995, and within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Exchange Act of 1934, any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals and assumptions of future events or performance are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward-looking statements in this release may be identified through the use of words such as expects, will, anticipates, estimates, believes, or statements indicating certain actions such as "may," "could," or "might" occur. Such statements reflect the current views of Empire Energy with respect to future events and are subject to certain assumptions, including those described in this release. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products, services, and technologies, competitive market conditions, successful integration of acquisitions, the ability to secure additional sources of financing, the ability to reduce operating expenses and other factors. The actual results that the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. Empire Energy Corporation International does not undertake any responsibility to update the "forward-looking" statements contained in this news release.

EMPIRE ENERGY CORPORATION INTERNATIONAL
Website: www.empireenergy.com

Media:
MARSTON WEBB INTERNATIONAL
270 Madison Avenue
New York, New York 10016
Phone: (212) 684-6601
Fax: (212) 725-4709
Email: marwebint@cs.com
http://www.marstonwebb.com

WEDGEWOOD INVSTMENT GROUP LLC
http://www.wedgewoodinc.com
Inquiries: info@wedgewoodinc.com

Empire Energy (OTCMKTS:EEGC) Announces the Appointment of Marston Webb as International Public and Investor Relations Consultant

newsroom@abnnewswire.net — Mon, 20 May 2013 10:04:35 GMT

Empire Energy Corporation International (OTCMKTS:EEGC), has announced the engagement of Marston Webb International of New York effective May 16, 2013. The agency, which will assist the company in managing all aspects of its public and investor relations along with market awareness programs, brings to Empire Energy more than 30 years of relevant industry experience.

In making the announcement today Malcolm Bendall, CEO of Empire energy said the board had made considerable progress in consolidating its global business and in positioning the company to take the fullest advantage of its present and future oil and gas exploration and exploitation.

Malcolm Bendall, CEO of Empire Energy commented; "It is our intention to keep investors fully acquainted with our progress and the excitement we feel about the future of our company. We are very pleased and feel fortunate to have been able to retain such an internationally known firm to represent our company to assist us in building reputation and awareness on a global basis. Our board looks forward to working with Marston Webb," he said

Under the terms of Marston Webb's engagement, the firm will be paid a retainer of $15,000.00 and a monthly fee of $10,000.00 The Agency will not be granted stock options or common shares of the Company under this agreement.

Cautionary Note Regarding Forward-Looking Statements

Safe Harbor: Pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995, and within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Exchange Act of 1934, any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals and assumptions of future events or performance are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward-looking statements in this release may be identified through the use of words such as expects, will, anticipates, estimates, believes, or statements indicating certain actions such as "may," "could," or "might" occur. Such statements reflect the current views of Empire Energy with respect to future events and are subject to certain assumptions, including those described in this release. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products, services, and technologies, competitive market conditions, successful integration of acquisitions, the ability to secure additional sources of financing, the ability to reduce operating expenses and other factors. The actual results that the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. Empire Energy Corporation International does not undertake any responsibility to update the "forward-looking" statements contained in this news release.

Empire Energy Corporation International 
Website: www.empireenergy.com

MEDIA:
MARSTON WEBB INTERNATIONAL
270 Madison Avenue
New York, New York 10016
Phone: (212) 684-6601
Fax: (212) 725-4709
Email: marwebint@cs.com
http://www.marstonwebb.com

Sunridge International (PINK:SNDZ) Sale of Assets to Westhouse Medical

newsroom@abnnewswire.net — Thu, 16 May 2013 13:07:49 GMT

Sunridge International (PINK:SNDZ), announced today that it will not be moving forward with the sale of its assets to Westhouse Medical of London, England due to Westhouse's failure to make certain payments as required by the asset purchase agreement entered into between the parties.

Sunridge intends to invoke the arbitration provision of the asset purchase agreement to address issues raised as a result of Westhouse's failure to make the required payments.

Jeff Smith, Sunridge International
T:  +1-480-837-6165
e-mail: info@sunridgeint.com

Western Mining Limited (ASX:WMN) Successful Completion of Due Diligence on Persada Tenement

newsroom@abnnewswire.net — Thu, 16 May 2013 09:54:00 GMT

The Board of Western Mining Network Limited (ASX:WMN) is pleased to announce that the due diligence work on PT. Persada Bumi Rawas ("PT. PBR") and its 100% interest in IUP Exploration No. 540/307.19/Distamben dated 12 August 2009 ("Persada Tenement") has been completed.

WMN has informed PT. PBR that it will proceed with the transaction under the Master Agreement announced to ASX on 15 April 2013.

The Share Subscription Agreement to acquire 80% of the issued shares in PT. PBR which directly holds a 100% interest in the Persada Tenement is currently being finalised and will be executed in due course.

An exploration report on the Persada Tenement is attached. The Company plans to focus on two blocks that have indicated potential gold anomalies.

To view the Persada Project Report, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-WMN-635765.pdf

Western Mining Limited
T: +61-8-9421-7777
WWW: www.westernmining.net

Avalon Rare Metals (TSE:AVL) Releases First 2013 Video CEO Update

newsroom@abnnewswire.net — Thu, 16 May 2013 09:26:57 GMT

Avalon Rare Metals Inc.(TSE:AVL) (NYSE MKT:AVL) has released its first 2013 CEO video update in which President and CEO, Don Bubar, discusses the significance of the Company's recently announced comprehensive Feasibility Study on the Nechalacho Rare Earth Elements Project as well as other recent developments.

The 4:30 minute video was released on May 8, and can be viewed on YouTube. It is also accessible via Avalon's corporate website, Facebook, Twitter, Stocktwits and LinkedIn.

Click to view the video:
http://www.youtube.com/watch?v=0qwJ-D40y_I&list

Avalon Rare Metals Inc.
Communications and Investor Relations
Ron Malashewski, Manager
T: +1-416-364-4938
F: +1-416-364-5162
E: malashewski@avalonraremetals.com
WWW: www.avalonraremetals.com

Petrel Resources PLC (LON:PET) - Porcupine Basin Data Room Opened and Farm Out Discussions Underway

newsroom@abnnewswire.net — Tue, 14 May 2013 21:58:28 GMT

Petrel Resources (LON:PET) today announces that a data room has been opened in London for its two Licensing Options, 11/4 and 11/6, in the Porcupine Basin, Irish Atlantic Margin. The two Licensing Options cover 1,400 square kilometres, with licence 11/4 in the north of the basin, and 11/6 in the east of the basin.

The Directors have commenced negotiations with a number of oil and gas companies interested in participating in the two licences.

Petrel Resources is a diversified oil and gas exploration and production company, with interests in Ghana, Ireland and Iraq. The company has a signed petroleum agreement in Ghana, holds two licences in offshore Ireland and ongoing interests in Iraq.

Enquiries:
Petrel Resources Plc 
David Horgan
Managing Director 
+353 (0)87 292 3500

John Teeling
Executive Chairman 
+353 (0)1 833 2833

WestSide Corporation Limited (ASX:WCL) Indicative Takeover Proposal Withdrawn

newsroom@abnnewswire.net — Tue, 14 May 2013 15:18:45 GMT

WestSide Corporation Limited (ASX:WCL) has been advised by PetroChina International Investment Company Limited (PetroChina), which submitted an indicative, non-binding proposal to acquire 100 per cent of the shares in WestSide on 19 November 2012, that it will not proceed with the proposal. PetroChina has advised WestSide that it has decided to withdraw from negotiations in relation to the proposal "because the general situation in Australia has changed so much".

WestSide's Executive Chairman Mr Angus Karoll said the Board was disappointed with the advice received from PetroChina given the level of cooperation afforded to them over several months, including the amount of management time invested and the patience of the Company's shareholders throughout the process.

"Importantly, I believe the bidder had a positive view on the quality and value of the Company's core Meridian SeamGas asset," Mr Karoll said.

Since receiving the non-binding acquisition proposal from LNG Limited in February 2012, WestSide's Board has explored a number of transaction structures with the objective of maximising shareholder value. The options available to WestSide, a number of which remain under active consideration, include long term gas sale agreements, joint ventures and the sale of 100 per cent of the shares in the Company.

Discussions with interested parties remain active and will continue to be progressed as a matter of priority following the withdrawal of PetroChina. Other strategic parties are continuing their due diligence investigation of the company with the objective of developing proposals for consideration by the WestSide Board, but there is no certainty that an offer acceptable to the Board will eventuate.

"WestSide will intensify its focus on several valuable commercial opportunities available to the Company as an emerging independent gas producer in Australia's burgeoning energy market, while due diligence by other parties continues. The Board remains committed to delivering the best outcome for shareholders" Mr Karoll said.

Over the last 12 months, the Company has observed increasing shortages of gas for Queensland's Liquefied Natural Gas (LNG) projects and to satisfy domestic gas demand. Recently-completed gas sale agreements by other parties and proposals received by the Company indicate a material firming in gas prices over the last six months.

This firming in gas prices has further reinforced the strategic value of the 680 PJ of Proved and Probable (2P) gross gas reserves at Meridian SeamGas, the vast majority of which remains uncontracted. Meridian SeamGas remains in a strong position to supply the Queensland domestic and export gas markets being the closest producing gas field to Gladstone, just 160km to the east, and is connected via the Queensland Gas Pipeline.

The Board will continue to pursue options which allow shareholders to fully participate in the strategic value that the Company offers to parties short of gas.

WestSide will continue to keep the market informed of any material developments in accordance with its disclosure obligations.

WestSide Corporation Limited
T: +61-7-3020-0900
F: +61-7-3020-0999
WWW: www.westsidecorporation.com

Lexam VG Gold (TSE:LEX) Reports Resource Update at Buffalo Ankerite

newsroom@abnnewswire.net — Tue, 14 May 2013 10:16:39 GMT

Lexam VG Gold Inc. (the "Company", "Lexam") (TSE:LEX)(OTCQX:LEXVF)(FRA:VN3A) announces updated resource estimates for the Buffalo Ankerite property in Timmins, Ontario.

A digital resource model, including an optimized Whittle Pit, was completed for the Buffalo Ankerite North and South Zones. Updated resource estimates for the Davidson Tisdale, Fuller and Paymaster projects unfortunately remain in progress.

                                                                            
Table 1. 2013 Buffalo Ankerite In-Pit Resource Estimate                     
----------------------------------------------------------------------------
In-Pit Resources - at a Cut-Off Grade of 0.015 opt Au (0.51 gpt Au)         
----------------------------------------------------------------------------
                Indicated Resources               Inferred Resources        
----------------------------------------------------------------------------
            Tonnes  Grade Grade         Au    Tonnes  Grade Grade         Au
Zone     (000's t)  (opt) (gpt) (000's oz) (000's t)  (opt) (gpt) (000's oz)
----------------------------------------------------------------------------
North          483  0.071  2.43       37.6       180  0.070  2.40       13.8
----------------------------------------------------------------------------
South        2,378  0.075  2.57        197     2,456  0.068  2.33        183
----------------------------------------------------------------------------
Total        2,861  0.074  2.54        235     2,635  0.068  2.33        197
----------------------------------------------------------------------------
                                      (See Note at the end of news release.)

In this press release the following abbreviations are used: opt = ounce per ton; gpt = gram per tonne, Au = gold; oz = ounce; ft = foot; m = metre; M = million, t = tonne. The following definitions apply: 1 tonne = 1,000 kilograms; cut-off grade = the grade value that distinguishes ore from waste, where material which has a grade below the cut-off grade is classified as waste and material with a grade equal to or greater than the cut-off grade is classified as ore. The Buffalo Ankerite in-pit resource is 235,000 ounces of gold at a grade of 2.54 gpt Au in the Indicated category and 197,000 ounces of gold at a grade of 2.33 gpt Au in the Inferred category. This resource occurs within two optimized Whittle Pit shells, North Zone and South Zone. The Whittle pit dimensions are as follows:

     - North Zone: Length x Width x Depth of 719 m x 663 m x 213 m (2,360 ft
     x 2,175 ft x 700 ft);                                                  
                                                                            
     - South Zone: Length x Width x Depth of 1,362 m x 649 m x 320 m (4,470 
     ft x 2,130 ft x 1,050 ft).

This represents a favourable target for potential exploitation due to the proximity of the project to mining infrastructure in the Timmins area. Once resource estimates for all four properties have been completed, the Company will initiate a Preliminary Economic Assessment to determine the economic viability of mining these properties by open pit methods.

Lexam VG Gold Resources

The growth of resources is an important objective for Lexam VG Gold. The exploration goal for the remainder of 2013 is to continue to develop the Company's gold resource base. Lexam currently has NI 43-101 resources estimates for four projects: Buffalo Ankerite, Fuller, Davidson Tisdale and Paymaster.

About Buffalo Ankerite Property

Buffalo Ankerite is a property of 1,214 acres, situated southeast of Timmins in northern Ontario. Buffalo Ankerite is easily accessible by highway, neighbouring within a few kilometers Goldcorp's Dome Mine to the east, Hollinger and McIntyre Mines to the north and Aunor Mine to the west, mines that generated more than 50 million of the 70 million ounces of gold produced in the Timmins Gold Camp. During the period 1926-1953, the Buffalo Ankerite property had a production of 1,018,000 ounces of gold with an average recovered grade of 6.51 grams per tonne.

Technical Information

The technical information contained in this press release has been reviewed and approved by Kenneth W. Guy, P. Geo, a consultant to Lexam VG Gold and a Qualified Person within the meaning of National Instrument 43-101 "Standards of Disclosure for Mineral Projects" ("NI 43-101").

The resource estimate contained herein for Buffalo Ankerite was prepared by Eugene Puritch, P.Eng and Richard Routledge, P.Geo (P&E Mining Consultants Inc.), each an independent Qualified Person in accordance with NI 43-101, using the Canadian Institute of Mining (CIM), Metallurgy and Petroleum Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions. For additional information about this resource estimate and the Buffalo Ankerite Property, see the "Note in Reference to Table 1" contained below and the technical report titled "NI 43-101 Technical Report Resource Estimate on the Buffalo Ankerite Property" dated and with an effective date of October 20, 2012, prepared by Peter A. Bevan, P.Eng, an independent Qualified Person within the meaning of NI 43-101 and Kenneth W. Guy, P. Geo, a Qualified Person within the meaning of NI 43-101. The foregoing technical report is available under Lexam VG Gold's profile on SEDAR (www.sedar.com).A technical report will be filed on SEDAR within 45 days of this news release.

The resource estimates contained herein do not constitute a Feasibility or Pre-Feasibility study and contain no mineral reserves within the meaning of NI 43-101 or SEC Industry Guide 7. The mineral resource figures referred to in this press release are estimates and therefore insufficient to allow meaningful application of the technical and economic parameters to enable an evaluation of technical or economic viability and no assurances can be given that the indicated levels of gold will be produced. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a given time may significantly change when new information becomes available. While the Company believes that the resource estimates included in this press release are well established, resource estimates are imprecise by their nature and depend, to a certain extent, upon statistical inferences which may ultimately prove unreliable. If such estimates are inaccurate or are reduced in the future, this could have a material adverse impact on the Company. In addition, this news release includes Inferred resources that are too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves.

Cautionary Note to U.S. Investors

All resource estimates reported by Lexam VG Gold are calculated in accordance with NI 43-101 and the Canadian Institute of Mining and Metallurgy Classification system. These standards are different from the standards generally permitted in reports filed with the SEC. Under NI 43-101, Lexam VG Gold reports indicated and inferred resources, measurements which are generally not permitted in filings made with the SEC. According to Canadian NI 43-101 criteria, the estimation of indicated resources involve greater uncertainty as to their economic feasibility than the estimation of proven and probable reserves. Under SEC Industry Guide 7 criteria, measured, indicated and inferred resources are considered Mineralized Material. The SEC considers that in addition to greater uncertainty as to the economic feasibility of Mineralized Material compared to Proven and Probable reserves, there is also greater uncertainty as to the existence of Mineralized Material. U.S. investors are cautioned not to assume that Measured or Indicated resources will be converted into economically mineable reserves. The estimation of Inferred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources.

Caution Concerning Forward-Looking Statements

This press release contains certain forward-looking statements and information. The forward-looking statements and information express, as at the date of this press release, Lexam VG Gold's plans, estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of precious metals, mining industry risks, risks related to: litigation, property title, the Paymaster Option, the state of the capital markets, whether shareholder and regulatory approvals for any proposed transaction are forthcoming, environmental risks and hazards, uncertainty as to calculation of mineral resources and reserves and other risks. Readers should not place undue reliance on forward-looking statements or information. Lexam VG Gold undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. See Lexam VG Gold's Annual Information Form dated December 31, 2011 and available on SEDAR (www.sedar.com) for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information. All forward-looking statements and information made in this news release are qualified by this cautionary statement.

Note in Reference to Table 1

(1) Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues, although the Company is not aware of any such issues.

(2) The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.

(3) The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.

(4) The resource estimate for Buffalo Ankerite was prepared by Eugene Puritch, P.Eng and Richard Routledge, P.Geo (P&E Mining Consultants Inc.), each an independent Qualified Person in accordance with NI 43-101, using the Canadian Institute of Mining (CIM), Metallurgy and Petroleum Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions.

(5) Grade capping for Buffalo Ankerite of 51 gpt was applied to raw assays for the mineralized domains. Inverse distance cubed (ID3) was utilized for grade interpolation and was based on 1.52m (5 ft) composites and model blocks of 3m x 3m x 3m (10 ft x 10 ft x 10 ft).

(6) A bulk density for Buffalo Ankerite of 2.85 t/m3 (0.089 tons/ft3) was used for all volume to tonnes conversion based on the bulk density testing of approximately 307 samples.

(7) An approximate 30 month trailing average gold price of US$1,600/oz and an exchange rate of US$1.00=C$1.00 was utilized in the Au cut-off grade calculations of 0.5 gpt Au for open pit Mineral Resources and 1.50 gpt for underground Mineral Resources. Underground mining costs were assumed at C$46/t, with process costs of C$18/t and G&A of C$5/t. Open pit mining costs were $1.85/t for mineralized material and waste rock while overburden mining costs were $1.35/t. Process recovery was assumed at 90%.

To learn more about Lexam VG Gold (TSX:LEX), visit our website: www.lexamvggold.com.

To view "Figure 1. Buffalo Ankerite In-Pit Resources North and South Zones With Color Grade Blocks (Surface Plan Map)", please visit the following link: http://media3.marketwire.com/docs/LEX05092013.pdf.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Lexam VG Gold Inc.
Mihaela Iancu
Investor Relations
(647) 258-0395 ext. 320 or Toll Free: (866) 441-0690
Fax: (647) 258-0408
info@lexamvggold.com
www.lexamvggold.com

or

Mailing Address:
Lexam VG Gold Inc.
181 Bay Street
Suite 4750, P.O. Box 792
Toronto, ON, Canada
M5J 2T3

Bauxite Resources Limited (ASX:BAU) Announcement of Buy-back - Appendix 3C

newsroom@abnnewswire.net — Tue, 14 May 2013 09:38:05 GMT

Perth based bauxite explorer and developer, Bauxite Resources Ltd (ASX:BAU) advises that it is implementing an on-market share buyback for up to 10% of its issued capital over the period of 12 months. Based on BRL's closing share price on 10 May 2013 ($0.12) this would equate to a maximum of $2.8 million.

The Board is committed to active capital management, with a focus on ensuring optimisation of value for shareholders. The Board considers that BRL' s current share price does not accurately reflect the strong underlying cash position and value within the company's assets and the share buyback represents an opportunity to add value to the remaining shares on issue.

The buyback period is scheduled to commence on 28 May 2013 (14 days from the date of this announcement). The buy-back does not require shareholder approval.

The timing and actual number of shares to be purchased will depend on market conditions and other future events. A broker will be appointed to manage the buy-back on behalf of the Company. The Board considers that this buyback will not impact the currently planned work programmes for 2013 and 2014.

To view the release, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-BAU-635444.pdf

Bauxite Resources Limited
T: +61-8-9200-8200
F: +61-8-9200-8299
WWW: www.bauxiteresources.com.au

Buccaneer Energy Limited (ASX:BCC) Cosmo Well Spud

newsroom@abnnewswire.net — Tue, 14 May 2013 09:26:50 GMT

Buccaneer Energy Limited (ASX:BCC) advises that the Alaskan Oil and Gas Conservation Commission ("AOGCC") has inspected and certified the Endeavour jack-up rig for operations within Alaskan state waters, this was the final certification required for the Endeavour to be able to commence drilling operations.

The Cosmo # 1 well spud at approximately midday EST on 13 May 2013 (Sydney) and is currently at 600' drilling ahead.

The Company will provide weekly drilling updates commencing on Tuesday 21 May 2013.

The Cosmopolitan Project ("Cosmo") is located in 80' feet of water approximately 30 miles to the north west of Homer. Cosmo is jointly owned with privately owned Fort Worth, Texas based BlueCrest Energy II, LP ("BlueCrest") owning a 75% working interest and Buccaneer a 25% working interest, with Buccaneer as the Operator for the project.

Cosmo # 1 Well Plan

The Cosmo # 1 well is a vertical well that has a targeted Total Vertical Depth of 8,000' ("TVD"), the well is anticipated to take approximately 45 days to drill and test.

Surface casing will be set at 800' after which the well will be drilled to the top of the Tyonek Formation ("Tyonek") at 2,000' where casing will again be set. The first gas Tyonek gas zone should be intersected at approximately 2,150' with multiple gas zones anticipated intersected to 6,000'.

Casing will be set at approximately 6,000' before drilling through the proven oil bearing Starichkof and Hemlock Formations, and will reached the target depth of 8,000' after drilling the prospective West Foreland Formation. The current plan is to take oil cores to augment the reservoir data to further optimize the future oil plan of development. At this stage it is not planned to flow test the oil formations.

On completion of drilling and logging operations the well will be plugged back to the bottom of the Tyonek gas formation. Gas zones within the Tyonek Formation that are identified as potentially commercial through drilling and logging will then be perforated and flow tested. If successfully tested the well will be temporary abandoned as a future gas producer.

Historical Technical Appraisal and Drilling

The Cosmopolitan oil accumulation was initially discovered by Pennzoil by exploration drilling in 1967.

- Oil reservoirs are the Oligocene Lower Tyonek (Starichkof sands);
- Reservoirs are non-marine sandstones with 750' of vertical oil column;
- Oil gravity is 24-27 degrees API; and
- Pioneer estimated OOIP at 360 MMBO;

An offset well (Starichkof State Unit #1) was drilled by Pennzoil in 1967 to the northeast of the discovery well:

- Well was low on the structure and wet in the oil zones;
- Several cores in the shallower Tyonek Formation revealed excellent rock properties with porosities >20% and permeability of 100 - 1000 md;
- Conventional core was taken in the Lower Tyonek Starichkof Formation with average porosity >14% and average permeability > 36 md; and
- Gas cut mud was tested from Tyonek intervals suggesting possible gas higher on structure.

The accumulation was tested again by Arco in 2001:

- Hansen #1 well was drilled from onshore with long reach and found oil in the Starichkof and Hemlock sands;
- 2 Drill Stem Tests ("DST") in the Starichkof sands tested at 200-300 BOPD; and
- Follow up DST's in 2002 found Hemlock sands oil which tested at 300 BOPD and a subsequent Starichkof test of 125 BOPD.

The accumulation was tested again by ConocoPhillips who acquired Arco assets in 2003:

- Hansen #1A was sidetracked out of the original Hansen #1 with a long reach well drilled from onshore;
- DST in the Starichkof/Hemlock intervals tested at rates up to 1000 BOPD; and
- Extended production test stabilized at 550 BOPD.

Pioneer acquired a 40 square mile 3D survey covering the structure in 2005 and obtained a 100% ownership position in 2007

Additional drilling occurred by Pioneer in 2010:

- Hansen #1A-L1 was drilled as a long lateral out of the #1A sidetrack;
- The #1A-L1 is a horizontal well drilled within the Starichkof interval;
- An extended production test was conducted after drilling and stimulation (frac); and
- Results were a cumulative 33,504 BO produced with no water at 250 BOPD + 1 MMcfg/day additional to the Hansen #1A extended production test of 550 BOPD.

Buccaneer Energy Limited
T: +61-2-9233-2520
F: +61-2-9233-2530
WWW: www.buccenergy.com