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New Concept Energy, Inc. Reports 2nd Quarter 2011 Results

New Concept Energy, Inc. (AMEX: GBR), (“the Company” or “NCE”), a Dallas-based oil and gas company, today reported a net gain of $66,000 and $166,000 for the three and six months ended June 30, 2011, as compared to a net loss of $275,000 and $315,000 for the comparable periods of 2010.

For the three and six months ended June 30, 2011, the Company recorded oil and gas revenues of $280,000 and $560,000 as compared to $331,000 and $601,000 for the comparable period of 2010. The changes in oil & gas revenue were due to changes in the price of oil and gas in the marketplace.

For the three and six months ended June 30, 2011, the Company recorded revenues of $733,000 and $1,462,000 from its retirement property compared to $751,000 and $1,454,000 for the comparable periods in 2010. The variances between comparable periods are due to occupancy fluctuations.

For the three and six months ended June 30, 2011, the Company recorded oil and gas operating expenses of $365,000 and $700,000 as compared to $316,000 and $672,000 for the comparable period of 2010. The increase was due to an increase in drilling and related expenses.

For the three and six months ended June 30, 2011, operating expenses and lease expense at the retirement property were $514,000 and $1,095,000 as compared to $602,000 and $1,095,000 for the comparable periods in 2010.

For the three and six months ended June 30, 2011, corporate general & administrative expenses were $126,000 and $250,000 as compared to $124,000 and $323,000 for the comparable periods in 2010. The decrease is primarily due to decreased payroll costs.

For the three and six months ended June 30, 2011, interest income was $120,000 and $239,000 as compared to $114,000 and $253,000 for the comparable periods in 2010. The decrease is due to an overall reduction in the receivable on which interest is computed over the comparable periods.

 
 
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATION
(amounts in thousands, except per share data)
       
For the Three Months ended June 30, For the Six Months ended June 30,
2011 2010 2011 2010
Revenue
Oil and gas operations, net of royalties $ 280 $ 331 $ 560 $ 601
Real estate operations   733     751     1,462     1,454  
  1,013     1,082     2,022     2,055  
 
 
Operating expenses
Oil and gas operations 365 316 700 672
Real estate operations 321 368 711 693
Lease expense 193 234 384 473
Corporate general and administrative 126 124 250 323
Accretion of asset retirement obligation   32     30     64     60  
  1,037     1,072     2,109     2,221  
Operating earnings (loss) (24 ) 10 (87 ) (166 )
 
Other income (expense)
Interest income 120 114 239 253
Interest expense (31 ) (31 ) (62 ) (62 )
Gain on sale of assets, net - - - 10
Other income (expense), net   1     (368 )   73     (350 )
Income/(Expense)   90     (285 )   250     (149 )
 
 
Net income (loss) applicable to common shares $ 66   $ (275 ) $ 163   $ (315 )
 
Net income (loss) per common share-basic and diluted $ 0.03   $ (0.14 ) $ 0.08   $ (0.16 )
 
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,   December 31,
2011 2010
Assets
 
Current assets
Cash and cash equivalents $ 32 $ 59
Accounts receivable from oil and gas sales 209 223
Other current assets   16   14
Total current assets   257   296
 
Note and interest receivable – related party 9,885 10,361
 
Oil and natural gas properties (full cost accounting method)
Proved developed and undeveloped oil and gas properties, net of depletion 11,736 11,789
 
Property and equipment, net of depreciation
Land, buildings and equipment - oil and gas operations 1,381 1,395
Other   151   156
Total property and equipment 1,532 1,551
 
Other assets   475   70
 
Total assets $ 23,885 $ 24,067
 
 
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - CONTINUED
(amounts in thousands, except share amounts)
   
June 30, December 31,
2011 2010
 
Liabilities and stockholders' equity
 
Current liabilities
Accounts payable - trade $ 208 $ 83
Accrued expenses   28     156  
Total current liabilities 236 239
 
Long-term debt
Notes payable 1,367 1,308
Payable - related parties 486 953
Asset retirement obligation 2,637 2,573
Other long-term liabilities   726     723  
Total liabilities 5,452 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 June 30, 2011 and December 31, 2010 20 20
Additional paid-in capital 58,838 58,838
Accumulated deficit   (40,426 )   (40,588 )
 
  18,433     18,271  
 
Total liabilities & equity $ 23,885   $ 24,067  




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