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