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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