Bucking Horse Energy Inc. announces third quarter financial results



    VANCOUVER, July 15 /CNW/ - Bucking Horse Energy Inc.'s (the "Bucking
Horse" or the "Company") (TSX: BUC) announces the results of its third quarter
consolidated financial statements for the period ending May 31, 2008.  Any
reference in this news release to any dollar amount is in U.S. dollars unless
otherwise stated.

    
    SUMMARY

    -   Cash flow from operations increased to $8,633,009

    -   EBITDA increased to $11,282,359

    -   Total revenues increased to $7,622,618

    -   Net income before taxes increased to $7,130,443
    

    Bucking Horse's cash flow from operations for the nine-month period ended
May 31, 2008 increased to $8,633,009. Earnings before interest, taxes,
depreciation and amortization ("EBITDA") (1) for the third quarter of 2008
increased to $11,282,359 from $189,537 in 2007. Total revenue for the third
quarter of 2008 increased to $7,622,618 compared to $591,569 for the same
period in 2007, while net income increased to $5,986,943 compared to a loss of
$156,466 for the same period in 2007. Net income before taxes for the third
quarter of 2008 increased to $7,130,443 from a loss of $156,466 for the same
period in 2007 primarily as a result of increased revenue attributable to the
Plan of Arrangement and acquisition of Gemini Energy Corp. whereby we
indirectly acquired the Pinedale producing properties in Sublette County,
Wyoming, U.S.A in March 2008.
    Net production for the period ended May 31, 2008 attributable to the
Pinedale producing properties totaled 712 million cubic feet ("MMcf") of
natural gas and 6.2 thousand barrels of natural gas liquids, or 750 million
cubic feet of natural gas equivalent ("MMcfe") averaging 8.1 MMcfe/day. Prices
realized by the Company in the U.S. averaged $8.92 per Mcf of natural gas and
$105 per barrel of natural gas liquids.
    Direct operating expenses for the nine-month period ended May 31, 2008
increased to $5,310,434 ($1,395,262 in non-cash depreciation and depletion
costs, $2,747,441 in State taxes, $77,199 in Canadian production royalties,
and $1,090,532 in operating expenses) compared to $485,407 ($236,555 in
depreciation and depletion costs, $nil in State taxes, $156,727 in Canadian
production royalties and $92,125 in operating expenses) for the same period in
2007.
    Other expenses and costs for the nine-month period ended May 31, 2008
decreased to a net credit of $2,051,923 compared to $262,628 in the same
period 2007. General and administration expenses were $924,168 compared to
$62,121 in 2007. Foreign exchange gain increased to $7,072,772 compared to a
loss of $42,613 in the same period in 2007. Interest expense increased to
$2,757,227 compared to $109,448 for the same period in 2007.

    Note (1) EBITDA is defined as earnings before interest, taxes,
depreciation and amortization and other items. EBITDA is not a recognized
measure under and is offered as a commonly used industry metric for
comparative purposes only.

    
    -------------------------------------------------------------------------
    Reconciliation of cash flow                     Nine Months Ended May 31
     from operations before change
     in net working capital                             2008           2007

    Net cash provided by
     operating activities                            $8,633,009      $95,666

                            Accounts payable and
                             accrued liabilities              -            -
                            Prepaid expenses                  -            -
                            Accounts receivable               -            -
                            Income taxes                      -            -

    Cash flow from operations                        $8,633,009      $95,666
     before change in net
     working capital
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Reconciliation of EBITDA                        Nine Months Ended May 31
     to net income
                                                        2008           2007

    EBITDA                                          $11,282,359     $189,537

    Less                    Depletion, depreciation
                             and accretion            1,395,262      236,555
                            Interest on long-term
                             debt                     2,757,227      109,448

                            Income taxes              1,143,500            -

    Net Income (loss)                                $5,986,370    ($156,466)
    -------------------------------------------------------------------------
    

    Bucking Horse's 2007 Audited Financial Statements and Management
Discussion and Analysis are available on SEDAR at www.sedar.com.

    Bucking Horse Energy Inc. is a public oil and gas exploration,
development and production company listed on the Toronto Stock Exchange with
23,061,713 shares issued. More information about Bucking Horse Energy Inc. can
be found on its website.





For further information:

For further information: Gordon Nielsen at (604) 331-3398 or visit the
Company website at www.buckinghorseenergy.com

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BUCKING HORSE ENERGY INC.

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