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 $350,000 in the South Texas company through both a loan and other costs. In 2010, the bankruptcy court converted the bankruptcy filing to chapter 7 and ordered the liquidation of the South Texas company. It is unlikely our company will recover any of its investment.
|NEW CONCEPT ENERGY, INC AND SUBSIDIARIES|
|CONSOLIDATED STATEMENT OF OPERATIONS|
|(amounts in thousands, except per share data)|
For the Three Months ended June 30,
For the Six Months ended June 30,
|Oil and gas operations, net of royalties||$||331||$||287||$||601||$||681|
|Real estate operations||751||762||1,454||1,436|
|Oil and gas operations||316||371||672||757|
|Real estate operations||368||383||693||723|
|Corporate general and administrative||124||235||323||497|
|Accretion of asset retirement obligation||30||-||60||-|
|Operating earnings (loss)||10||(178||)||(166||)||(337||)|
|Other income (expense)|
|Gain on sale of assets, net||-||-||10||-|
|Other income (expense), net||(368||)||12||(350||)||43|
|Net income (loss) applicable to common shares||$||(275||)||$||(84||)||$||(315||)||$||(61||)|
|Net income (loss) per common share-basic and diluted||$||(0.12||)||$||(0.04||)||$||(0.16||)||$||(0.03||)|
|Weighted average common and equivalent shares outstanding - basic||1,947||1,947||1,947||1,947|
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
|CONSOLIDATED BALANCE SHEETS|
|(amounts in thousands)|
|June 30, 2010||December 31, 2009|
|Cash and cash equivalents||$||102||$||155|
|Accounts receivable from oil and gas sales||247||203|
|Note and interest receivable – related party||10,035||11,206|
|Other current assets||201||567|
|Total current assets||10,585||12,131|
|Oil and natural gas properties (full cost accounting method)|
|Proved developed and undeveloped oil and gas properties, net of depletion||11,374||11,372|
|Property and equipment, net of depreciation|
|Land, buildings and equipment - oil and gas operations||1,323||1,337|
|Total property and equipment||1,482||1,486|
|NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES|
|CONSOLIDATED BALANCE SHEETS - CONTINUED|
|(amounts in thousands, except share amounts)|
June 30, 2010
December 31, 2009
|Liabilities and stockholders' equity|
|Accounts payable - trade||$||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|
|Asset retirement obligation||2,510||2,450|
|Other long-term liabilities||277||326|
|Preferred stock, Series B||1||1|
|Common stock, $.01 par value; authorized, 100,000,000|
|shares; issued and outstanding, 1,946,939 shares|
|at December 31, 2009 and 2008||20||20|
|Additional paid-in capital||58,838||58,838|
|Total liabilities & equity||$||23,655||$||25,121|
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