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New Concept Energy, Inc. Reports 3rd Quarter 2011 Results

New Concept Energy, Inc. (AMEX: GBR), (“the Company” or “NCE”), a Dallas-based oil and gas company, today reported a net loss of $57,000 and a net gain of $106,000 for the three and nine months ended September 30, 2011, as compared to a net gain of $188,000 and a net loss of $127,000 for the comparable periods of 2010.

For the three and nine months ended September 30, 2011, the Company recorded oil and gas revenues, net of royalties of $313,000 and $873,000 as compared to $349,000 and $950,000 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 nine months ended September 30, 2011, the Company recorded revenues of $690,000 and $2,152,000 from its retirement property compared to $763,000 and $2,217,000 for the comparable periods in 2010. The variances between comparable periods are due to occupancy fluctuations.

For the three and nine months ended September 30, 2011, the Company recorded oil and gas operating expenses of $325,000 and $1,025,000 as compared to $320,000 and $992,000 for the comparable period of 2010. The increase was due to an increase in drilling and related expenses.

For the three and nine months ended September 30, 2011, operating expenses and lease expense at the retirement property were $632,000 and $1,727,000 as compared to $541,000 and $1,707,000 for the comparable periods in 2010.

For the three and nine months ended September 30, 2011, corporate general & administrative expenses were $101,000 and $351,000 as compared to $124,000 and $447,000 for the comparable periods in 2010. The decrease is primarily due to decreased payroll costs.

For the three and nine months ended September 30, 2011, interest income was $121,000 and $360,000 as compared to $122,000 and $375,000 for the comparable periods in 2010.
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATION
(unaudited)
(amounts in thousands, except per share data)
               
For the Three Months ended September 30, For the Nine Months ended September 30,
2011 2010 2011 2010
Revenue
Oil and gas operations, net of royalties $ 313 $ 349 $ 873 $ 950
Real estate operations   690     763     2,152     2,217  
  1,003     1,112     3,025     3,167  
 
 
Operating expenses
Oil and gas operations 325 320 1,025 992
Real estate operations 440 330 1,151 1,023
Lease expense 192 211 576 684
Corporate general and administrative 101 124 351 447
Accretion of asset retirement obligation   32     30     96     90  
  1,090     1,015     3,199     3,236  
Operating earnings (loss) (87 ) 97 (174 ) (69 )
 
Other income (expense)
Interest income 121 122 360 375
Interest expense (31 ) (31 ) (93 ) (93 )
Gain on sale of assets, net - - - 10
Other income (expense), net   (60 )   -     13     (350 )
Income/(Expense)   30     91     280     (58 )
 
 
Net income (loss) applicable to common shares $ (57 ) $ 188   $ 106   $ (127 )
 
Net income (loss) per common share-basic and diluted $ (0.03 ) $ 0.10   $ 0.05   $ (0.07 )
 

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
(unaudited)
(amounts in thousands)
 
  September 30,     December 31,
2011 2010
Assets
 
Current assets
Cash and cash equivalents $ 2 $ 59
Accounts receivable from oil and gas sales 221 223
Other current assets   15   14
Total current assets   238   296
 
Note and interest receivable – related party 10,007 10,361
 
Oil and natural gas properties (full cost accounting method)
Proved developed and undeveloped oil and gas properties, net of depletion 11,913 11,789
 
Property and equipment, net of depreciation
Land, buildings and equipment - oil and gas operations 1,373 1,395
Other   151   156
Total property and equipment 1,524 1,551
 
Other assets   520   70
 

Total assets
$ 24,202 $ 24,067
 
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - CONTINUED
(unaudited)
(amounts in thousands, except share amounts)
     
September 30, December 31,
2011 2010
 
Liabilities and stockholders' equity
 
Current liabilities
Accounts payable - trade $ 340 $ 83
Accrued expenses   135     156  
Total current liabilities 475 239
 
Long-term debt
Notes payable 1,390 1,308
Payable - related parties 611 953
Asset retirement obligation 2,669 2,573
Other long-term liabilities   680     723  
Total liabilities 5,825 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   (40,482 )   (40,588 )
 
  18,377     18,271  
 
Total liabilities & equity $ 24,202   $ 24,067  

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