Market Overview

New Concept Energy, Inc. Reports Second Quarter 2018 Results

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New Concept Energy, Inc. (NYSE:GBR), (the "Company" or "NCE")
a Dallas-based oil and gas company, today reported a net loss from
continuing operations for the three months ended June 30, 2018 of
$174,000 or ($0.07) per share, compared to net loss from continuing
operations of $124,000 or ($0.06) per share for the three months ended
June 30, 2017.

For the three months ended June 30, 2018, the Company recorded oil and
gas revenues of $173,000 as compared to $243,000 for the comparable
period of 2017. The decrease was principally due to a decrease in the
rate the Company received for the sale of its natural gas. In April 2018
a long term rate agreement expired and the price the Company received
for its gas reverted to the existing market price which was less than
the rate in the expired agreement.

For the three months ended June 30, 2018, the Company recorded oil and
gas operating expenses of $239,000 as compared to $256,000 for the
comparable period of 2017. The decrease was due to overall decrease in
general operating expenses.

For the three months ended June 30, 2018, corporate general &
administrative expenses were $108,000 as compared to $122,000 for the
comparable periods in 2017. The decrease was due to a decrease in
payroll expenses as well as other administrative costs.

         
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited)
(amounts in thousands)

June 30,
2018

December 31,
2017

 
Assets
 
Current assets
Cash and cash equivalents $ 278 $ 419
Accounts receivable from oil and gas sales 45 67
Other current assets   47   36
Total current assets   370   522
 
 
Oil and natural gas properties (full cost accounting method)
Proved developed and undeveloped oil and gas properties, net of
depletion
2,620 2,721
 
Property and equipment, net of depreciation
Land, buildings and equipment - oil and gas operations   636   661
Total property and equipment 636 661
 
Other assets (including $124 due from related parties in 2015)   268   301
 
Total assets $ 3,894 $ 4,205
 
 
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - CONTINUED
(unaudited)
(amounts in thousands, except share amounts)
         

June 30,
2018

December 31,
2017

 
Liabilities and stockholders' equity
 
Current liabilities
Accounts payable (includes $277 and $412 due to related parties in
2018 & 2017)
$ 306 $ 446
Accrued expenses 32 29
Current portion of long term debt   58     81  
Total current liabilities 396 556
 
Long-term debt
Notes payable less current portion 229 243
Asset retirement obligation   2,770     2,770  
Total liabilities 3,395 3,569
 
Stockholders' equity
Preferred stock, Series B 1 1
Common stock, $.01 par value; authorized, 100,000,000
shares; issued and outstanding, 2,131,935 shares
at June 30, 2018 and December 31, 2017 22 21
Additional paid-in capital 59,170 59,000
Accumulated deficit   (58,694 )   (58,386 )
 
Total Shareholder Equity   499     636  
 
Total liabilities & equity $ 3,894   $ 4,205  
 
 
NEW CONCEPT ENERGY, INC AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited)
(amounts in thousands, except per share data)
                 

For the Three
Months ended June 30,

For the Six Months
ended June 30,

2018 2017 2018 2017
Revenue
Oil and gas operations, net of royalties $ 173 $ 243 $ 377 $ 438
 
 
Operating expenses
Oil and gas operations 239 256 514 512
Corporate general and administrative   108     122     183     222  
Total Operating Expenses   347     378     697     734  
Operating earnings (loss) (174 ) (135 ) (320 ) (296 )
 
 
Other income (expense)
Interest income 4 11 11 15
Interest expense (5 ) (6 ) (11 ) (13 )
Other income (expense)   1     6     12     (2 )
  0     11     12     0  
 
Loss from continuing operations (174 ) (124 ) (308 ) (296 )
 
Earnings (loss) from discontinued operations   0     (11 )   0     2  
 
Net income (loss) applicable to common shares $ (174 ) $ (135 ) $ (308 ) $ (294 )
 
Net income (loss) per common share-basic and diluted $ (0.08 ) $ (0.07 ) $ (0.14 ) $ (0.15 )
 
 
Weighted average common and equivalent shares outstanding - basic 2,132 1,947 2,132 1,947
 

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