EX-99 2 ex991.htm

 

NEWS RELEASE

FOR IMMEDIATE RELEASE

Contact:

New Concept Energy Inc.

Investor Relations

Gene Bertcher, (800) 400-6407 info@newconceptenergy.com

 

 

New Concept Energy, Inc. Reports Third Quarter 2017 Results

 

Dallas (November 14, 2017) – New Concept Energy, Inc. (NYSE American: GBR), ( the “Company” or “NCE”) a Dallas-based oil and gas company, today reported a net loss for the three months ended September 30, 2017 of $101,000 or ($0.05) per share, compared to a net loss of $164,000 or ($0.08) per share for the three months ended September 30, 2016.

 

At March 30, 2017 the Company’s operating lease expired at the retirement center it operated in Oregon. The operations of the retirement center are reflected as a discontinued operations.

The net loss from continuing operations was $90,000 for the three months ended September 30, 2017 compared to a net loss of $170,000 for the similar period in the prior year.

For the nine months ended September 30, 2017 the Company reported a net loss of $397,000 or ($0.20) per share as compared to a net loss of $593,000 or ($0.30) per share for the similar period in 2016.

For the three months ended September 30, 2017, the Company recorded oil and gas revenues, net of royalty expenses of $194,000 as compared to $190,000 for the comparable period of 2016.

 

For the three months ended September 30, 2017, the Company recorded oil and gas operating expenses of $254,000 as compared to $295,000 for the comparable period of 2016. The decrease was principally due to a reduction of depletion expenses as well as general operating expenses.

 

For the three months ended September 30, 2017, corporate general & administrative expenses were $95,000 as compared to $52,000 for the comparable periods in 2016. The increase was due to overall operating expenses during the quarter.

 

 

 

 

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited)
(amounts in thousands)
    September 30, 2017   December 31, 2016
         
Assets                
                 
Current assets                
 Cash and cash equivalents   $ 427     $ 113  
 Accounts receivable from oil and gas sales     129       119  
 Other current assets     61       206  
Total current assets     617       438  
                 
                 
Oil and natural gas properties (full cost accounting method)                
 Proved developed and undeveloped oil and gas properties, net of depletion     5,428       5,608  
                 
Property and equipment, net of depreciation                
 Land, buildings and equipment - oil and gas operations     675       706  
 Other     —         25  
Total property and equipment     675       731  
                 
Other assets     308       401  
                 
Total assets   $ 7,028     $ 7,178  

 

 

 

 

 

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - CONTINUED
(unaudited)
(amounts in thousands, except share amounts)
         
    September 30, 2017   December 31, 2016
         
Liabilities and stockholders' equity                
                 
Current liabilities                
    Accounts payable - trade (including $513 and $160 at 2017 and 2016 due to related parties)   $ 525     $ 238  
    Accrued expenses     67       59  
    Current portion of long term debt     85       96  
Total current liabilities     677       393  
                 
Long-term debt                
    Notes payable less current portion     259       296  
    Asset retirement obligation     2,770       2,770  
Total liabilities     3,706       3,459  
                 
Stockholders' equity                
    Preferred stock, Series B     1       1  
    Common stock, $.01 par value; authorized, 100,000,000                
      shares; issued and outstanding, 1,946,934 shares                
      at September 30, 2017 and December 31, 2016     20       20  
    Additional paid-in capital     58,838       58,838  
    Accumulated deficit     (55,537 )     (55,140 )
      3,322       3,719  
                 
Total liabilities & equity   $ 7,028     $ 7,178  

 

 

 

 

 

NEW CONCEPT ENERGY, INC AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited)
(amounts in thousands, except per share data)
                 
    For the Three Months ended September 30,   For the Nine Months ended September 30,
    2017   2016   2017   2016
Revenue                
Oil and gas operations, net of royalties   $ 194     $ 190     $ 632     $ 579  
     Total Revenue     194       190       632       579  
                                 
                                 
Operating expenses                                
Oil and gas operations     254       295       766       924  
Corporate general and administrative     95       52       317       319  
      349       347       1,083       1,243  
    Operating earnings (loss)     (155 )     (157 )     (451 )     (664 )
                                 
                                 
Other income (expense)                                
Interest income     5       6       20       17  
Interest expense     (6 )     (8 )     (19 )     (26 )
Other income (expense), net     66       (11 )     51       (21 )
Other income (expense)     65       (13 )     52       (30 )
                                 
Loss from continuing operations   $ (90 )   $ (170 )   $ (399 )   $ (694 )
                                 
Earnings (loss) from discontinued operations     (11 )     6       2       101  
                                 
Net loss applicaable to common shares     (101 )     (164 )     (397 )     (593 )
                                 
                                 
Net income (loss) per common share-basic and diluted   $ (0.05 )   $ (0.08 )   $ (0.20 )   $ (0.30 )
                                 
                                 
Weighted average common and equivalent shares outstanding     1,947       1,947       1,947       1,947