Bucking Horse Energy Inc.
TSX : BUC

Bucking Horse Energy Inc.

November 16, 2009 21:34 ET

Bucking Horse Energy Inc. Announces Third Quarter Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 16, 2009) - Bucking Horse Energy Inc. ("Bucking Horse" or the "Company") (TSX:BUC) announces the results of its third quarter consolidated financial statements for the period ending September 30, 2009.

As a result of the change in year end from August 31 to December 31, effective December 31, 2008, the Company's nine month period ended September 30, 2009 is compared to the nine month period ended August 31, 2008.

All references in this news release are in U.S. dollars unless otherwise stated.

SUMMARY:

- Cash flow from operations was $1,542,481

- Earnings before interest, taxes, depreciation and amortization were $1,478,403

- Total operating revenue was $9,270,221

- Net loss before taxes was $8,579,577

Bucking Horse's cash flow from operations for the third quarter ended September 30, 2009 increased to $1,542,481. Earnings before interest, taxes, depreciation and amortization ("EBITDA") (1) for the quarter ended September 30, 2009 decreased to $1,478,403 compared to $10,520,857 for the period ended August 31, 2008. Total operating revenue for the nine-month period ended September 30, 2009 was $9,270,221. Net income decreased to a loss of $9,289,116. Net losses before taxes for September 30, 2009 were $8,579,577.

Direct operating expenses for the nine-month period ended September 30, 2009 were $9,900,240 ($5,072,206 in non-cash depreciation and depletion costs, $804,843 in State taxes, $9,886 in Canadian production royalties, and $4,013,305 in operating expenses).

Other expenses and income for the nine-month period ended September 30, 2009 increased to $7,949,558. General and administration expenses were $409,520 for the nine-month period ended September 30, 2009. There was a foreign exchange loss of $369,383 for the nine-month period ended September 30, 2009. Interest expense increased to $5,093,854 for the nine-month period ended September 30, 2009.

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



---------------------------------------------------------------------------
Reconciliation of cash flow
from operations before change Nine months ended Nine months ended
in net working capital September 30, 2009 August 31, 2008

Net cash flow provided by operating
activities $1,542,491 $ 1,506,350

Accounts payable and accrued
liabilities 2,981,129 3,871,195
Prepaid expenses 475,054 354,672
Accounts receivable (1,458,613) (780,752)
Income taxes & state taxes (1,308,800) (1,029,079)

Cash flow from operations before
change in net working capital $2,231,251 $ 3,922,386
---------------------------------------------------------------------------


---------------------------------------------------------------------------
Nine months ended Nine months ended
Reconciliation of EBITDA to net income September 30, 2009 August 31, 2008

EBITDA $1,478,403 $10,520,857

Less:
Depletion, depreciation and accretion 5,072,206 4,141,596
Interest 4,985,774 3,224,273
Income taxes 709,539 2,776,272

Net income (loss) ($9,289,116) $ 378,716
---------------------------------------------------------------------------


Bucking Horse's unaudited interim and year end audited Financial Statements and the Management's Discussion and Analysis are available on SEDAR at www.sedar.com.

Bucking Horse Energy Inc. is an independent oil and gas exploration and production company focused in the Pinedale field, within the Green River Basin of southwestern Wyoming. The Common shares of the Corporation are listed for trading on the Toronto Stock Exchange under the symbol "BUC" with 22,994,513 shares issued. More information about Bucking Horse Energy Inc. can be found on its website www.buckinghorseenergy.com.

On behalf of the Board of Directors:

Gordon Nielsen, President

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information