May 15, 2017 - 4:30 PM EDT
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New Concept Energy, Inc. Reports First Quarter 2017 Results

New Concept Energy, Inc. (NYSE MKT: GBR), (the “Company” or “NCE”) a Dallas-based oil and gas company, today reported a net loss from continuing operations for the three months ended March 31, 2017 of $172,000 or ($0.09) per share, compared to net loss from continuing operations of $351,000 or ($0.18) per share for the three months ended March 31, 2016.

On March 30, 2017 the owners sold the property which triggered the termination of the Company’s lease to operate the 114 unit retirement center located in King City, Oregon. The operations of the retirement center, which is reflected as discontinued operations resulted in net earnings of $13,000 ($0.01 per share) and $55,000 ($0.03 per share) for the periods ended March 31, 2017 and 2016, respectively.

For the three months ended March 31, 2017, the Company recorded oil and gas revenues of $195,000 as compared to $219,000 for the comparable period of 2016. The decrease in oil & gas revenue for the three months ended March 31, 2017 was principally due to the production and price the Company received for oil.

For the three months ended March 31, 2017, the Company recorded oil and gas operating expenses of $256,000 as compared to $396,000 for the comparable period of 2016. The decrease was due to a specific effort by management to reduce operation costs. The decrease represents a $28,000 reduction in payroll costs and a reduction in general operating expenses of $38,000.

For the three months ended March 31, 2017, corporate general and administrative expenses were $100,000, as compared to $169,000 for the comparable period in 2016. The decreases was principally due to a decrease in corporate payroll.

         
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
 
March 31, 2017 December 31, 2016
Assets
 
Current assets
Cash and cash equivalents $ 520 $ 113
Accounts receivable from oil and gas sales 122 119
Other current assets   73   206
Total current assets   715   438
 
 
Oil and natural gas properties (full cost accounting method)
Proved developed and undeveloped oil and gas properties, net of depletion 5,551 5,608
 
Property and equipment, net of depreciation
Land, buildings and equipment - oil and gas operations 703 706
Other   -   25
Total property and equipment 703 731
 
Other assets   322   401
 
Total assets $ 7,291 $ 7,178
 
         
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - CONTINUED
(amounts in thousands, except share amounts)
 
 
March 31, 2017 December 31, 2016
 
Liabilities and stockholders' equity
 
Current liabilities
Accounts payable - (including $463 and $160 due to related parties in 2017 and 2016) $ 526 $ 238
Accrued expenses 53 59
Current portion of long term debt   89     96  
Total current liabilities 668 393
 
Long-term debt
Notes payable less current portion 293 296
Asset retirement obligation   2,770     2,770  
Total liabilities 3,731 3,459
 
Stockholders' equity
Preferred stock, Series B 1 1
Common stock, $.01 par value; authorized, 100,000,000
shares; issued and outstanding, 1,946,935 shares
at March 31, 2017 and December 31, 2016 20 20
Additional paid-in capital 58,838 58,838
Accumulated deficit   (55,299 )   (55,140 )
 
Total shareholders' equity   3,560     3,719  
 
Total liabilities & equity $ 7,291   $ 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 March 31,
2017 2016
Revenue
Oil and gas operations, net of royalties $ 195   $ 219  
Total Revenues   195     219  
 
 
Operating expenses
Oil and gas operations 256 396
Corporate general and administrative   100     167  
Total Operating Expenses   356     563  
Operating earnings (loss) (161 ) (344 )
 
Other income (expense)
Interest income 4 6
Interest expense (7 ) (11 )
Other income (expense), net   (8 )   (2 )
Expense   (11 )   (7 )
 

Earnings (loss) from continuing operations

(172 ) (351 )
 
Earnings from discontinued operations   13     55  
 
Net income (loss) applicable to common shares $ (159 ) $ (296 )
 
Net (loss) per common share from continuing operations $ (0.09 ) $ (0.18 )
 
Net income per common share from discontinued operations $ 0.01   $ 0.03  
 
Net income (loss) per common share-basic and diluted $ (0.08 ) $ (0.15 )
 
Weighted average common and equivalent shares outstanding - basic 1,947 1,947

New Concept Energy, Inc.
Gene Bertcher, 800-400-6407
[email protected]


Source: Business Wire (May 15, 2017 - 4:30 PM EDT)

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