New Concept Energy, Inc. (NYSE American: GBR), (the “Company” or
“NCE”) a Dallas-based oil and gas company, today reported Results
of Operations for the fourth quarter ended December 31, 2018.
During the three months ended December 31, 2018 the Company
reported a net loss of $55,000 or ($0.005) per share, compared to a
net loss of $2,851,000 or ($1.39) per share for the same period
ended December 31, 2017
For the full year ended December 31, 2018 the Company reported a
net loss of $484,000 or ($0.21) per share, compared to a net loss
of $3,246,000 or ($1.59) per share for the same period ended
December 31, 2017.
On December 4, 2018, the Company issued an additional 3,000,000
shares of Common Stock to a single investor for cash of $4,500,000
to increase stockholders’ equity by $4,440,000 after issuance
costs. The issuance of 3,000,000 shares of Common Stock resulted in
a change in control of the Company, as the investor now owns
approximately 59.6% of the outstanding Common Stock. The issuance
of the 3,000,000 shares of Common Stock increased the total number
of shares issued and outstanding to 5,131,935 shares.
Revenues: Total revenues from the oil & gas operation was
$682,000 in 2018 and $791,000 in 2017. The decrease was due to the
rate the Company received for the sale of its natural gas during
2018.
Operating Expenses: Operating expenses for continuing oil &
gas operations was $844,000 in 2018 and $1,027, 000 in 2017. This
decrease was principally due to a reduction of depreciation and
depletion expense of $73,000. The remaining decrease was the result
of an overall reduction in operating expenses.
In 2017 pursuant to the requirements of the “full cost ceiling
test” for oil & gas companies we recorded a non-cash charge to
operations of $2.6 million to write down its investment in Ohio and
West Virginia. This charge to earnings was caused by a revaluation
of the Company’s non-producing oil and gas reserves.
Corporate Expenses were $353,000 in 2018 and $408,000 in 2017.
The decrease was principally due to a reduction in payroll
expenses.
Interest Expense: Interest Expense was $18,000 in 2018 as
compared to $24,000 in 2017. The decrease was due to a reduction in
the long-term debt.
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 STATEMENTS OF OPERATIONS
(amounts in thousands, except per share data) Year
Ended December 31, 2018 2017
2016 Revenue Oil and gas
operations, net of royalties $ 682 $ 791 $ 764
682 791 764
Operating expenses Oil & gas operations 844 1,027 1,181
Corporate general and administrative 353 408 352 Impairment of
natural gas and oil properties - 2,626
- 1,197 4,061
1,533 Operating earnings (loss) (515 ) (3,270 ) (769 )
Other income (expense) Interest income (including $17
for the year ended 2018 from related parties) 37 25 23 Interest
expense (18 ) (24 ) (38 ) Gain on prepayment of debt - - 888 Gain
on sale of land - - 50 Bad debt expense (recovery) - note
receivable - - - Other income (expense), net 12
28 (110 ) 31 29 813 Earnings (loss)
from continuing operations (484 ) (3,241 ) 44 Earnings from
discontinued operations - (5 )
4 Net income (loss) applicable to common
shares $ (484 ) $ (3,246 ) $ 48 Net income (loss) per
common share-basic and diluted $ (0.21 ) $ (1.59 ) $ 0.02
Weighted average common and equivalent shares outstanding -
basic 2,358 1,947 1,947
NEW CONCEPT ENERGY, INC.
AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (amounts
in thousands) December 31, 2018
2017 Assets Current assets Cash and
cash equivalents $ 361 $ 419 Accounts receivable from oil and gas
sales 72 67 Current portion note receivable (including $4,017 in
2018 from related parties) 4,063 36
Total current
assets 4,496 522
Oil and natural
gas properties (full cost accounting method) Proved developed
and undeveloped oil and gas properties, net of depletion 2,517
2,721
Property and equipment, net of depreciation
Land, buildings and equipment - oil and gas operations 618 661
Note Receivable 251 301
Total
assets $ 7,882 $ 4,205
NEW CONCEPT ENERGY,
INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS -
CONTINUED (amounts in thousands, except share amounts)
December 31, 2018
2017 Liabilities and stockholders' equity
Current liabilities Accounts payable - trade
(including $37 and $412 in 2018 and 2017 due to related parties) $
59 $ 446 Accrued expenses 32 29 Current portion of long term debt
59 81
Total current liabilities
150 556
Long-term debt Notes payable less current
portion 201 243 Asset retirement obligation 2,770
2,770
Total liabilities 3,121 3,569
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
and 2,036,935 shares at December 31, 2018 and 2017 51 21 Additional
paid-in capital 63,579 59,000 Accumulated deficit (58,870 )
(58,386 ) 4,761 636
Total liabilities & stockholders' equity $ 7,882
$ 4,205
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version on businesswire.com: https://www.businesswire.com/news/home/20190401005726/en/
New Concept Energy, Inc.Gene Bertcher, (800)
400-6407info@newconceptenergy.com
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