News Press Releases

New Concept Energy, Inc. Reports First Quarter 2019 Results

GBR | May 15, 2019

DALLAS

New Concept Energy, Inc. (NYSE American: GBR) (the “Company” or “NCE”), a Dallas-based oil and gas company, today reported a net income applicable to common shares for the three months ended March 31, 2019 of $126,000 or $0.02 per share, compared to net loss of $134,000 or ($0.07) per share for the three months ended March 31, 2018. During the last nine months of 2018 the Company issued 3,094,000 shares of common stock increasing the number of shares outstanding while raising $4,609,000 in cash which the Company anticipates will be used for future drilling expenses, acquisitions and working capital.

For the three months ended March 31, 2019, the Company recorded oil and gas revenues of $180,000 as compared to $204,000 for the comparable period of 2018. The reduction was principally due to the dollar amount per MCF the Company received from the sale of natural gas.

For the three months ended March 31, 2019, the Company recorded oil and gas operating expenses of $179,000 as compared to $275,000 for the comparable period of 2018. The decrease was due to a decrease in depletion and depreciation, consulting fees and general operating expenses.

For the three months ended March 31, 2019, corporate general & administrative expenses were $88,000 as compared to $74,000 for the comparable period in 2018. The increase was due, for the most part, to consulting fees paid by the Company regarding oil and gas matters.



NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(amounts in thousands)

	March 31, 2019		December 31, 2018
Assets	(Unaudited)		(Audited)

Current assets
Cash and cash equivalents	$	460	$	361
Accounts receivable from oil and gas sales		93		72
Current portion note receivable (including $4,076 and $4,017 in 2019 and 2018 from related parties		4,115		4,063
Other current assets		34		-
Total current assets		4,702		4,496


Oil and natural gas properties (full cost accounting method)
Proved developed and undeveloped oil and gas properties, net of depletion		2,503		2,517

Property and equipment, net of depreciation
Land, buildings and equipment - oil and gas operations		610		618

Note Receivable		244		251

Total assets	$	8,059	$	7,882


NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - CONTINUED
(dollars in thousands, except par value amount)

	March 31, 2019			December 31, 2018
	(Unaudited)			(Audited)
Liabilities and stockholders' equity

Current liabilities
Accounts payable - (including $97 and $37 due to related parties in 2019 and 2018)	$	123		$	59
Accrued expenses		33			32
Current portion of long term debt		59			59
Total current liabilities		215			150

Long-term debt
Notes payable less current portion		187			201
Asset retirement obligation		2,770			2,770
Total liabilities		3,172			3,121

Stockholders' equity
Preferred stock, Series B		1			1
Common stock, $.01 par value; authorized, 100,000,000 shares; issued and outstanding, 5,131,934 and 2,036,935 shares at March 31, 2019 and December 31, 2018		51			51
Additional paid-in capital		63,579			63,579
Accumulated deficit		(58,744	)		(58,870	)

Total shareholders' equity		4,887			4,761

Total liabilities & equity	$	8,059		$	7,882


NEW CONCEPT ENERGY, INC AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited)
(amounts in thousands, except per share data)

	For the Three Months ended March 31,
	2019			2018
Revenue
Oil and gas operations, net of royalties	$	180		$	204
Total Revenues		180			204


Operating expenses
Oil and gas operations		179			275
Corporate general and administrative		88			74
Total Operating Expenses		267			350
Operating earnings (loss)		(87	)		(146	)

Other income (expense)
Interest income		65			7
Interest expense		(5	)		(6	)
Other income (expense), net		153			11
Expense		213			12

Earnings (loss) applicable to common shares		126			(134	)

Net income (loss) per common share-basic and diluted	$	0.02		$	(0.07	)

Weighted average common and equivalent shares outstanding - basic		5,131			2,037