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New Concept Energy, Inc. Reports First Quarter 2010 Results

New Concept Energy, Inc. (AMEX: GBR), (“the Company” or “NCE”), a Dallas-based oil and gas company, today reported results of operations for the first quarter ended March 31, 2010. NCE announced today that the Company reported a net loss applicable to common shares of $40,000 or $(0.02) per share for the three months ended March 31, 2010, as compared to net income of $23,000 or 0.01 per share for the same period ended 2009.

The Company recorded oil and gas revenues of $270,000 as compared to $394,000 for the comparable period of 2009. The decrease in oil & gas revenue was due entirely to lower prices in 2010.

The Company recorded revenues of $703,000 for the three months ended March 31, 2010 from its retirement property compared to $674,000 for the comparable periods in 2009. The principal reason for the increase was additional fees collected in 2010.

The Company recorded oil and gas operating expenses of $356,000 as compared to $386,000 for the comparable period of 2009. The decrease was due to a decrease in payroll costs.

Operating expenses and lease expense at the retirement property were $536,000 as compared to $551,000 for the comparable periods in 2009.

Corporate general & administrative expenses were $199,000 as compared to $262,000 for the comparable periods in 2009. The decrease is primarily due to decreased payroll costs.

Interest income was $139,000 as compared to $181,000. The decrease is primarily due to decreases in the prime lending rate and the decreased receivable on which interest is computed over the comparable periods. Interest expense for the three months ended March 31, 2010 was $31,000.

New Concept Energy, Inc. and Subsidiaries

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands, except per share amounts)

 
For the three months ended
March 31,
2010   2009
 
Revenue
Oil and gas operations, net of royalties $ 270 $ 394
Real estate operations   703     674  
973 1,068
 
 
Operating expenses
Oil and gas operations 356 386
Real estate operations 325 340
Lease expense 239 239
Corporate general and administrative 199 262
Accretion of asset retirement obligation   30      
  1,149     1,227  
 
Operating earnings (loss) (176 ) (159 )
 
Other income (expense)
Interest income 139 181
Interest expense (31 ) (30 )
Gain on sale of assets, net 10
Other income, net   18     31  
  136     182  
 
Net income (loss) from continuing operations   (40 )   23  
 
 
Net income (loss) applicable to common shares $ (40 ) $ 23  

Net income (loss) per common share – basic and diluted

$ (0.02 ) $ 0.01  
 

Weighted average common and equivalent shares outstanding – basic

1,947

1,947

 

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES

 

CONSOLIDATED BALANCE SHEETS

( amounts in thousands, except share amounts)

 
March 31,   December 31,
2010 2009
Assets
 
Current assets:
 
Cash and cash equivalents $ 123 $ 155
Accounts receivable from oil and gas sales 201 203
Note and interest receivable – related party 9,920 11,206
Other current assets   550   567
 
Total current assets 10,794 12,131
 
Oil and natural gas properties (full cost accounting method):
 
Proved developed and undeveloped oil and gas properties, net of depletion

11,350

11,372

 
Property and equipment, net of depreciation:
 
Land, buildings and equipment - oil and gas operations 1,330 1,337
Other 152 149
   
Total property and equipment 1,482 1,486
 
Other assets   162   132
 
Total assets $ 23,788 $ 25,121
 

New Concept Energy Inc. and Subsidiaries

 

CONSOLIDATED BALANCE SHEETS - CONTINUED

(amounts in thousands, except share amounts)

 
March 31, 2010   December 31, 2009
Liabilities and stockholders’ equity

 

Current liabilities:
 
Accounts payable – trade $ 200 $ 154

Accrued expenses (including $661 and $638 to related parties in 2010 and 2009

 

1,352

 

 

 

2,711

 
 
Total current liabilities 1,552 2,865
 
Long-term debt:
Notes payable 1,226 1,198
Asset retirement obligation 2,480 2,450
Other long-term liabilities   288     326  
 
Total liabilities 5,546 6,839
 
Stockholders’ equity:
Preferred stock, Series B 1 1
Common stock, $.01 par value; authorized, 100,000,000

shares; issued and outstanding, 1,946,939 shares at December 31, 2009 and 2008

20 20
Additional paid-in capital 58,838 58,838
Accumulated deficit   (40,617 )   (40,577 )
 
  18,242     18,282  
 
Total liabilities & equity $ 23,788   $ 25,121  




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