New Concept Energy Reports 2nd Quarter 2010 Results

New Concept Energy, Inc. (AMEX: GBR), (“the Company” or “NCE”), a Dallas-based oil and gas company, today reported a net loss of $275,000 and $315,000 for the three and six months ended June 30, 2010, as compared to a net loss of $84,000 and $61,000 for the comparable periods of 2009.

For the three and six months ended June 30, 2010, the Company recorded oil and gas revenues of $331,000 and $601,000 as compared to $287,000 and $681,000 for the comparable period of 2009. The changes in oil & gas revenue was due changes in the price of oil and gas in the marketplace.

The Company recorded oil and gas operating expenses for the three and six months ended June 30, 2010, of $316,000 and $672,000, as compared to $371,000 and $757,000 for the comparable period of 2009. The decrease was due to a decrease in payroll costs.

For the three and six months ended June 30, 2010, corporate general & administrative expenses were $124,000 and $323,000 as compared to $235,000 and $497,000 for the comparable periods in 2009. The decrease is primarily due to decreased payroll costs.

Interest income for the three and six months ended June 30, 2010, was $114,000 and $253,000 as compared to $113,000 and $294,000 for the comparable periods in 2009. The decrease is primarily due to decreased receivable on which interest is computed over the comparable periods.

The Company recorded an other expense of $350,000 for the six months ended June 30, 2010. In 2009, the Company was considering an association with an oil & gas company in South Texas that was operating under Chapter 11 of the bankruptcy code. During 2009, we invested $350,000 in the South Texas company through both a loan and other costs. In 2010, the bankruptcy court converted the bankruptcy filing to chapter 7 and ordered the liquidation of the South Texas company. It is unlikely our company will recover any of its investment.

NEW CONCEPT ENERGY, INC AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(amounts in thousands, except per share data)
		For the Three Months ended June 30,								For the Six Months ended June 30,
			2010				2009				2010				2009
Revenue
Oil and gas operations, net of royalties		$	331			$	287			$	601			$	681
Real estate operations			751				762				1,454				1,436
			1,082				1,049				2,055				2,117
Operating expenses
Oil and gas operations			316				371				672				757
Real estate operations			368				383				693				723
Lease expense			234				238				473				477
Corporate general and administrative			124				235				323				497
Accretion of asset retirement obligation			30				-				60				-
			1,072				1,227				2,221				2,454
Operating earnings (loss)			10				(178	)			(166	)			(337	)
Other income (expense)
Interest income			114				113				253				294
Interest expense			(31	)			(31	)			(62	)			(61	)
Gain on sale of assets, net			-				-				10				-
Other income (expense), net			(368	)			12				(350	)			43
Expense			(285	)			94				(149	)			276
Net income (loss) applicable to common shares		$	(275	)		$	(84	)		$	(315	)		$	(61	)
Net income (loss) per common share-basic and diluted		$	(0.12	)		$	(0.04	)		$	(0.16	)		$	(0.03	)
Weighted average common and equivalent shares outstanding - basic			1,947				1,947				1,947				1,947

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
		June 30, 2010			December 31, 2009
Assets
Current assets
Cash and cash equivalents		$	102		$	155
Accounts receivable from oil and gas sales			247			203
Note and interest receivable – related party			10,035			11,206
Other current assets			201			567
Total current assets			10,585			12,131
Oil and natural gas properties (full cost accounting method)
Proved developed and undeveloped oil and gas properties, net of depletion			11,374			11,372
Property and equipment, net of depreciation
Land, buildings and equipment - oil and gas operations			1,323			1,337
Other			159			149
Total property and equipment			1,482			1,486
Other assets			214			132
Total assets		$	23,655		$	25,121

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - CONTINUED
(amounts in thousands, except share amounts)
		June 30, 2010				December 31, 2009
Liabilities and stockholders' equity
Current liabilities
Accounts payable - trade		$	204			$	154
Accrued expenses (including $661 and $638 to related parties in 2010 and 2009)			1,444				2,711
Total current liabilities			1,648				2,865
Long-term debt
Notes payable			1,253				1,198
Asset retirement obligation			2,510				2,450
Other long-term liabilities			277				326
Total liabilities			5,688				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			(40,892	)			(40,577	)
			17,967				18,282
Total liabilities & equity		$	23,655			$	25,121

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