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New Concept Energy, Inc. Reports First Quarter 2011 Results

New Concept Energy, Inc. (AMEX:GBR), (“the Company” or “NCE”) a Dallas-based oil and gas company, today reported net income for the three months ended March 31, 2011 of $97,000 or $(0.05) per share, compared to net loss of $40,000 or $0.02 per share for the three months ended March 31, 2010.

For the three months ended March 31, 2011, the Company recorded oil and gas revenues of $280,000 as compared to $270,000 for the comparable period of 2010. The changes in oil & gas revenue was due to changes in the price of oil and gas in the marketplace.

During the same periods in 2011, the Company recorded revenues of $729,000 for the three months ended March 31, 2011 from its retirement property compared to $703,000 for the comparable period in 2010. The increase was a rise in the occupancy rate of the properties from prior periods.

For the three months ended March 31, 2011, the Company recorded oil and gas operating expenses of $335,000 as compared to $356,000 for the comparable period of 2010. The decrease was due to a decrease in overall administrative expenses during the year.

For the three months ended March 31, 2011, operating expenses and lease expense at the retirement property were $581,000 as compared to $564,000 for the comparable period in 2010. The increase was a rise in the occupancy rate of the properties from prior periods.

For the three months ended March 31, 2011, corporate general & administrative expenses were $124,000 as compared to $199,000 for the comparable periods in 2010. The decrease is primarily due to payroll costs and administrative overhead.

For the three months ended March 31, 2011, interest income was $119,000 as compared to $139,000 for the comparable period in 2010. The decrease is due to a reduction in the receivable on which interest is computed over the comparable periods.

NEW CONCEPT ENERGY ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(unaudited)
(amounts in thousands)
  March 31,   December 31,
2011 2010
Assets
 
Current assets
Cash and cash equivalents $ 68 $ 59
Accounts receivable from oil and gas sales 209 223
Other current assets   106   101
Total current assets   383   383
 
Note and interest receivable – related party 9,771 10,361
 
Oil and natural gas properties (full cost accounting method)
Proved developed and undeveloped oil and gas properties, net of depletion 11,776 11,789
 
Property and equipment, net of depreciation
Land, buildings and equipment - oil and gas operations 1,301 1,308
Other   154   156
Total property and equipment 1,455 1,464
 
Other assets   430   70
 
Total assets $ 23,815 $ 24,067
 
 
The accompanying notes are an integral part of these consolidated financial statements.
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - CONTINUED
(unaudited)
(amounts in thousands, except share amounts)
  March 31,   December 31,
  2011     2010  
 
Liabilities and stockholders' equity
 
Current liabilities
Accounts payable - trade $ 194 $ 83
Accrued expenses   67     156  
Total current liabilities 261 239
 
Long-term debt
Notes payable 1,336 1,308
Payable - related parties 486 953
Asset retirement obligation 2,605 2,573
Other long-term liabilities   760     723  
Total liabilities 5,448 5,796
 
Stockholders' equity
Preferred stock, Series B 1 1

Common stock, $.01 par value; authorized, 100,000,000 shares; issued and outstanding, 1,946,935 shares at March 31, 2011 and December 31, 2010

20 20
Additional paid-in capital 58,838 58,838
Accumulated deficit   (40,492 )   (40,588 )
 
  18,367     18,271  
 
Total liabilities & equity $ 23,815   $ 24,067  
 
 
The accompanying notes are an integral part of these consolidated financial statements.
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATION
(unaudited)
(amounts in thousands, except per share data)
   
For the Three Months ended March 31,
  2011     2010  
Revenue
Oil and gas operations, net of royalties $ 280 $ 270
Real estate operations   729     703  
  1,009     973  
 
 
Operating expenses
Oil and gas operations 335 356
Real estate operations 390 325
Lease expense 191 239
Corporate general and administrative 124 199
Accretion of asset retirement obligation   32     30  
  1,072     1,149  
Operating earnings (loss) (63 ) (176 )
 
Other income (expense)
Interest income 119 139
Interest expense (31 ) (31 )
Gain on sale of assets, net - 10
Other income (expense), net   72     18  
Income/(Expense)   160     136  
 
 
Net income (loss) applicable to common shares $ 97   $ (40 )
 
Net income (loss) per common share-basic and diluted $ 0.05   $ (0.02 )
 
Weighted average common and equivalent shares outstanding - basic 1,947 1,947
 
 
The accompanying notes are an integral part of these consolidated financial statements.




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