Bucking Horse Energy Inc.
TSX : BUC

Bucking Horse Energy Inc.

December 01, 2008 23:55 ET

Bucking Horse Energy Inc. Announces Year-End Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 1, 2008) - Bucking Horse Energy Inc. ("Bucking Horse" or the "Company") (TSX:BUC) announces the results of its year-end consolidated financial statements for the period ending August 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 $1,648,797

- EBITDA increased to $10,828,313

- Total revenues increased to $15,693,354

- Net income before taxes increased to $2,931,097

Bucking Horse's cash flow from operations for the twelve-month period ended August 31, 2008 increased to $1,648,797. Earnings before interest, taxes, depreciation and amortization ("EBITDA")(1) for 2008 increased to $10,828,313 from $213,891 in 2007. Total revenue for 2008 increased to $15,693,354 compared to $738,830 for 2007, while net income increased to $154,825 compared to a loss of $327,156 for 2007. Net earnings before taxes for 2008 increased to $2,931,097 from a loss of $327,156 for 2007.

Direct operating expenses for the twelve-month period ended August 31, 2008 increased to $8,852,623 ($4,248,956 in non-cash depreciation and depletion costs, $1,651,499 in State taxes, $106,450 in Canadian production royalties, and $2,845,718 in operating expenses) compared to $707,334 ($378,938 in depreciation and depletion costs, $nil in State taxes, $196,412 in Canadian production royalties and $131,984 in operating expenses) for the same period in 2007.

Other expenses and income for the twelve-month period ended August 31, 2008 increased to $3,909,634 compared to $358,652 in the same period of 2007. General and administration expenses were $901,529 compared to $69,402 in 2007. Foreign exchange loss increased to $173,751 compared to $nil for the same period in 2007. Interest expense increased to $3,648,260 compared to $162,109 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 generally accepted accounting principles and is offered as a commonly used industry metric for comparative purposes only.



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Reconciliation of cash
flow from operations
before change in net Twelve Months Ended August 31
working capital 2008 2007

Net cash provided by
operating activities $ 1,648,797 $ (82,254)

Accounts payable and
accrued liabilities 3,840,417 6,398
Prepaid expenses 334,433 8,283
Accounts receivable (853,778) 119,355
Income taxes (1,029,079) -

Cash flow from
operations before
change in net
working capital $ 3,940,790 $ 51,782
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Reconciliation of EBITDA Twelve Months Ended August 31
to net income 2008 2007

EBITDA $ 10,828,313 $ 213,891

Less Depletion,
depreciation
and accretion (4,248,956) (378,938)
Interest (3,648,260) (162,109)

Income taxes (2,776,272) -

Net Income (loss) $ 154,825 ($ 327,156)
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Bucking Horse's 2008 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.

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