New Concept Energy, Inc. Reports First Quarter 2019 Results

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 endedMarch 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
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
    
    

View source version on businesswire.com: https://www.businesswire.com/news/home/20190515005857/en/

New Concept Energy, Inc.Gene Bertcher, (800) [e-mail]