Check the appropriate box
below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following
provisions:
Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of
1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the
extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section
13(a) of the Exchange Act.
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf
by the undersigned, hereunto duly authorized.
Dated: March 27, 2020
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NEW CONCEPT ENERGY, INC.
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By:
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/s/ Gene S. Bertcher
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Gene
S. Bertcher
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President and
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Chief Financial Officer
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Exhibit "99.1"
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NEWS RELEASE
FOR IMMEDIATE RELEASE
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Contact:
New Concept Energy Inc.
Gene Bertcher (800) 400-6407
info@newconceptenergy.com
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New Concept
Energy, Inc. Reports Fourth Quarter and Full Year 2019 Results
Dallas – March 26,
2020 - 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 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.
Contact:
New Concept Energy, Inc.
Gene Bertcher (800) 400-6407
info@newconceptenergy.com