This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

New Concept Energy, Inc. Reports Fourth Quarter And Full Year 2011 Results

New Concept Energy, Inc. (AMEX:GBR), (the “Company” or “NCE”) a Dallas-based oil and gas company, today reported a net loss for the twelve months ended December 31, 2011 of $11.8 million or $(6.06) per share, compared to net loss of $11,000 or $(0.01) per share for the twelve months ended December 31, 2010. Net loss for the three months ended December 31, 2011 was $11.9 million as compared to a net income of $125,000 for the three months ended December 31, 2010.

The most significant components of the loss recorded in 2011 were bad debt expense of $10 million and impairment expense of $1.4 million for the Company’s oil and gas properties.

Between 2006 and the early part of 2009 the Company loaned a related real estate management company its surplus cash for interest rates ranging from 2% over the prime rate to 8% interest. At December 31, 2009 these loans totaled $11 million. Since 2009 the Company has been paid $857,000 in interest and a principal pay down of $1 million; however, in the fourth quarter of 2011 the Company determined that the financial condition of the obligator had deteriorated and there could be no assurance that the amount owed would or could be collected. The company has recorded a reserve of $10 million and written the receivable to zero.

Due to the decline of the prices for natural gas during 2011 the Company has taken a non-cash charge to operations of $1.4 million as an impairment of the Company’s oil and gas reserves.

In December 2006, Carlton Energy Group, LLC (“Carlton”) instituted litigation against an individual, Eurenergy Resources Corporation (“Eurenergy”) and several other entities including New Concept Energy, Inc., alleging tortuous conduct, breach of contract and other matters and as to the Company that it was the “alter ego” of Eurenergy. The Carlton claims were based upon an alleged tortuous interference with a contract related to the right to explore a coal bed methane concession in Bulgaria which had never (and has not to this day) produced a drop of hydrocarbons. At no time during the pendency of this project or since did the Company or any of its officers or directors have any interest whatsoever in the success or failure of the so-called “Bulgaria Project.” However, in the litigation, Carlton alleged that the Company was the “alter ego” of certain of the other Defendants including Eurenergy. Following a jury trial in 2009, the Trial Court granted a judgment for the Company that it was not the “alter ego” of any of the other parties and thereby would not incur any damages.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.05 -1.20%
FB $118.47 0.89%
GOOG $695.70 0.48%
TSLA $228.50 -1.60%
YHOO $37.45 4.00%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs