New Concept Energy Reports Fourth Quarter And Full Year 2009 Financial Results
New Concept Energy, Inc. (AMEX: GBR), (“the Company” or “NCE”), a Dallas-based oil and gas company, today reported a net loss for the twelve months ended December 31, 2009 of $2.2 million or $1.27 per share, compared to net income of $15.5 million or $8.92 per share for the twelve months ended December 31, 2008. Net loss for the three months ended December 31, 2009 was $2.2 million as compared to a net loss of $150,000 for the three months ended December 31, 2008.
The loss in 2009 is primarily attributable to a non-cash charge to operations of $1.7 million related to impairment of the Company’s oil and gas reserves. In addition, the spot price for natural gas in the markets where the Company operates was substantially lower in 2009 than in 2008. The net income in 2008 was primarily attributable to a one-time sale of mineral rights in the Fayetteville Shale resulting in a gain of $16.4 million.
Revenues and Operating Expenses: Total revenues for 2009 totaled $4.1 million compared to $3.6 million in 2008. The primary reason for the increase is the acquisition of the oil and gas operations in September 2008. Fiscal 2009 reflects a full twelve months of operating revenue for the oil and gas operations, while 2008 reflects only four months of such revenue.
Revenue for the retirement facility totaled approximately $2.9 million for 2008 and 2009.Operating expenses totaled $6.8 million for 2009 compared to $3.7 million for 2008. In 2009, oil and gas operating costs totaled $1.5 million compared to $496,000 in 2008 due to the acquisition of the oil and gas operations described above. In 2009, the company recorded a non-cash charge to operations of $1.7 million for impairment of natural gas and oil properties, pursuant to the results of the full-cost ceiling test. Also in 2009, the Company recorded accretion of discount related to its asset retirement obligation of $117,000. Operating expenses for the retirement facility remained relatively constant.
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