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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