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New Concept Energy, Inc. Reports Fourth Quarter and Full Year 2019 Results

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New Concept Energy, Inc. (NYSE:GBR), (the "Company" or "NCE") a Dallas-based oil and gas company, today reported Results of Operations for the fourth quarter and the full year ended December 31, 2019.

During the three months ended December 31, 2019 the Company reported a net loss of $17,000 compared to a net loss of $55,000 for the same period ended December 31, 2018.

For the full year ended December 31, 2019 the Company reported a net loss of $2.3 million or ($0.46) per share, compared to a net loss of $484,000 or ($0.21) per share for the same period ended December 31, 2018.

Revenues: Total revenues from the oil & gas operation was $590,000 in 2019 and $682,000 in 2018. The decrease was due to the rate the Company received for the sale of its natural gas during 2019.

Operating Expenses: Operating expenses for continuing oil & gas operations was $686,000 in 2019 and $844,000 in 2018. This decrease was principally due to a reduction of depreciation and depletion expense of $166,000.

In 2019 pursuant to the requirements of the "full cost ceiling test" for oil & gas companies we recorded a non-cash charge to operations of $ $2.3 million to write down its investment in West Virginia. In September 2019 the Company unsuccessfully drilled a well which resulted in dry hole. As the well did not prove up the estimated probable and possible reserves, the Company had to deem the applicable reserve estimates as impaired. In the third quarter the company booked an impairment expense of $2,285,000 which represents a reduction of both the estimated probable and possible reserves as well as the cost of drilling the failed well. This charge to earnings was caused by a revaluation of the Company's non- producing oil and gas reserves.

Corporate Expenses were $412,000 in 2019 and $353,000 in 2018. The increase was principally due to an increase in consulting expenses.

Interest Income: Interest Income was $237,000 in 2019 as compared to $37,000 in 2018. The increase was due to the interest earned from investing the proceeds from the issuance and sale of common stock in December 2018.

About New Concept Energy, Inc.

New Concept Energy, Inc. is a Dallas-based oil and gas company which owns oil and gas wells and mineral leases in Ohio and in West Virginia. For more information, visit the Company's website at www.newconceptenergy.com.

 
 
 

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(amounts in thousands)

 

December 31,

 

2019

 

2018

Assets
Current assets
Cash and cash equivalents

 $

       22

 

 $

     361

Accounts receivable from oil and gas sales

 

          73

 

 

          72

Current portion note receivable (including $4,005 and $4,017 in 2019 and 2018 from related parties)

 

     4,046

 

 

     4,063

Total current assets

 

     4,141

 

 

     4,496

     
     
Oil and natural gas properties (full cost accounting method)      
Proved developed and undeveloped oil and gas properties, net of depletion

 

        767

 

 

     2,517

     
Property and equipment, net of depreciation      
Land, buildings and equipment - oil and gas operations

 

        668

 

 

        618

     
Note Receivable

 

        214

 

 

        251

     
Total assets

 $

  5,790

 

 $

  7,882

 
 
 
 
 

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS - CONTINUED

(amounts in thousands, except share amounts)

 

 

 

 

 

December 31,

 

2019

 

2018

Liabilities and stockholders' equity    
    
Current liabilities    
    Accounts payable - trade (including $180 and $37  in 2019 and 2018 due to related parties)

 $

                 355

 

 $

                   59

 

    Accrued expenses 

 

                      35

 

 

                      32

 

    Current portion of long term debt

 

                      44

 

 

                      59

 

Total current liabilities

 

                    434

 

 

 

                    150

 

      
Long-term debt          
    Notes payable less current portion

 

                    177

 

 

 

                    201

 

    Asset retirement obligation

 

                 2,770

 

 

 

                 2,770

 

Total liabilities

 

                 3,381

 

 

 

                 3,121

 

          
Stockholders' equity          
Series B convertible preferred stock, $10 par value, liquidation value of $100 authorized 100 shares, issued and outstanding one share 1 1
Common stock, $.01 par value; authorized, 100,000,000 shares; issued and outstanding, 5,131,934 shares at December 31, 2019 and 2018 51 51
    Additional paid-in capital

 

               63,579

 

 

 

               63,579

 

    Accumulated deficit

 

              (61,222

)

 

 

              (58,870

)

  

 

                 2,409

 

 

 

                 4,761

 

            
Total liabilities & stockholders' equity

 $

              5,790

 

 $

              7,882

 

        
 
 
 
 

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands, except per share data)

 

 

 

 

 

 

 

Year Ended December 31, 

 

2019

 

2018

 

2017

Revenue      
Oil and gas operations, net of royalties

 $

       590

 

 

 $

       682

 

 

 $

       791

 

  

 

          590

 

 

          682

 

 

          791

 

              
Operating expenses        
Oil & gas operations

 

          686

 

 

          844

 

 

       1,027

 

Corporate general and administrative

 

          412

 

 

          353

 

 

          408

 

Impairment of natural gas and oil properties

 

       2,285

 

 

             -  

 

 

       2,626

 

 

       3,383

 

 

       1,197

 

 

       4,061

 

Operating earnings (loss)

 

      (2,793

)

 

         (515

)

 

      (3,270

)

              
Other income (expense)            
Interest income (including $240 and $17 for the year ended 2019 and 2018 from related parties)

 

          257

 

 

            37

 

 

            25

 

Interest expense

 

           (15

)

 

           (18

)

 

           (24

)

Other income (expense), net

 

          199

 

 

            12

 

 

            28

 

 

          441

 

 

            31

 

 

            29

 

            
Earnings (loss) from continuing operations

 

      (2,352

)

 

 

         (484

)

 

 

      (3,241

)

         
Earnings from discontinued operations

 

             -  

 

 

 

             -  

 

 

 

             (5

)

         
Net income (loss) applicable to common shares

 $

   (2,352

)

 

 $

      (484

)

 

 $

   (3,246

)

         
Net income (loss) per common share-basic and diluted

 $

     (0.46

)

 

 $

     (0.21

)

 

 $

     (1.59

)

         
Weighted average common and equivalent shares outstanding - basic

 

5,132

 

 

 

2,358

 

 

 

1,947

 

 
 

 

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