Bucking Horse Energy Inc.

TSX : BUC


Bucking Horse Energy Inc.

November 09, 2012 15:50 ET

Bucking Horse Energy Inc. Announces Third Quarter Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 9, 2012) - Bucking Horse Energy Inc. ("Bucking Horse" or the "Company") (TSX:BUC) announces the results of its third quarter unaudited interim condensed consolidated financial statements for the nine-month period ended September 30, 2012.

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

CONSOLIDATED RESULTS FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2012:

  • Cash flow used in operations was $1,327,456
  • Earnings before interest, taxes, depreciation, amortization and write down of natural gas properties was $4,507,190
  • Total operating revenue was $10,039,359
  • Net loss before taxes was $64,622,195

Bucking Horse's cash flow used in operations (outflow) for the nine-month period ended September 30, 2012 increased to $(1,327,456) from an inflow of $1,402,419 in September 30, 2011. Earnings before interest, taxes, depreciation, amortization and write down of natural gas properties (1) for the nine-month period ended September 30, 2012 decreased to $4,507,190. Total operating revenue for the nine-month period ended September 30, 2012 was $10,039,359. Net loss for the period increased to $45,143,859. Net loss before taxes for the nine-month period ended September 30, 2012 was $64,622,195.

Direct operating expenses for the nine-month period ended September 30, 2012 were $12,238,564 ($6,617,877 in non-cash depreciation and depletion costs, $871,965 in State resource taxes, and $4,748,722 in operating expenses).

Other expenses and income for the nine-month period ended September 30, 2012 increased to a total expense of $62,422,990, due largely to a ceiling-test non-cash write down of $55,059,793 for the period. General and administration expenses were $880,669 for the nine-month period ended September 30, 2012. There was a foreign exchange loss of $19,038 for the nine-month period ended September 30, 2012. Interest expense increased to $6,424,753 for the nine-month period ended September 30, 2012.

Note (1) Earnings before interest, taxes, depreciation and amortization and other items including write down of natural gas properties is not a recognized measure under International Financial Reporting Standards ("IFRS") and is offered as a commonly used industry metric for comparative purposes only.

Reconciliation of Cash Flow from Operations before Change in Net Working Capital
Nine months
ended
Nine months
ended
September 30, September 30,
2012 2011
Net cash flow provided by (used in) operating activities $(1,327,456 ) $1,402,419
Less:
Accounts payable and accrued liabilities 4,433,409 (1,049,645 )
State resource taxes 226,781 94,805
Accounts receivable (103,492 ) 108,944
Income taxes 507,705 830,580
Cash flow from operations before change in net working capital $3,736,947 $1,387,133
Reconciliation of Earnings Before Interest, Taxes, Depreciation, Amortization and Write Down of Natural Gas Properties to Net Income
Nine months
ended
Nine months
ended
September 30, September 30,
2012 2011
Earnings before interest, taxes, depreciation, amortization and write down on natural gas properties: $4,507,190 $7,154,994
Less:
Depletion, depreciation and accretion 7,644,839 5,385,444
Write-down of natural gas properties 55,059,793 -
Interest 6,424,753 6,199,026
Income taxes (19,478,336 ) 936,185
Net loss for the period $(45,143,859 ) $(5,365,661 )

Bucking Horse's 2011 audited and interim Consolidated 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 22,604,213 shares issued. More information about Bucking Horse Energy Inc. can be found on our website.

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

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