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.
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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version on businesswire.com: https://www.businesswire.com/news/home/20200326005782/en/
New Concept Energy, Inc. Gene Bertcher, (800) 400-6407
info@newconceptenergy.com
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