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, 2017. During the three months ended December 31, 2017 the Company reported a net loss of $2,851,000 or ($1.39) per share, compared to a net income of $641,000 or $0.32 per share for the same period ended December 31, 2016.

For the full year ended December 31, 2017 the Company reported a net loss of $3,246,000 or ($1.59) per share, compared to a net income of $48,000 or $0.02 per share for the same period ended December 31, 2016.

Included in the 2017 loss are non-cash expenses of $3,047,000 including an impairment expense of $2,626,000 to reduce the carrying value of the Company’s oil and gas properties, depreciation, depletion and amortization expense of $396,000 and a $25,000 expense to write off assets from the operations at a retirement center that was discontinued in 2017.

Revenues: Total revenues from the oil & gas operation was $791,000 in 2017 and $764,000 in 2016. Net revenue for our oil and gas operation increased by $27,000 in 2017 as compared to 2016. Included in 2016 revenue is a onetime fee of $30,000. The increase in revenue in 2017 was principally due to an increase in the quantity of oil and gas produced.

Operating Expenses: Operating expenses for continuing oil & gas operations was $1,027,000 in 2017 and $1,181,000 in 2016. This decrease of $154,000 was principally due to a reduction of depreciation and depletion expense of $174,000. The remaining increase 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 $2,646,000 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 $408,000 in 2017 and $352,000 in 2016. The increase is due to an overall increase in operating expenses.

Interest Expense: Interest Expense was $24,000 in 2017 as compared to $38,000 in 2016. The decrease was due to a reduction in the long term debt.

Other Income & (Expense): Other income & (expense) was $28,000 for 2017 as compared to ($110,000) in 2016. In 2017 the most significant item was the receipt of $64,000 for a receivable the Company had previously written off. The expenses in 2016 were principally the write off assets pertaining to the termination of the lease at the retirement center.

Discontinued Operations: The Company leased and operated Pacific Pointe Retirement Inn (“Pacific Pointe”) a retirement community in King City, Oregon. Our lease provided that should the property be sold the lease maintained by the Company would be terminated. The owners completed the sale of the building on March 30, 2017 and our lease terminated on that date. These financial statements reflect the operations of the retirement community as a discontinued operation. Net income (loss) from discontinued operations was ($5,000) and $4,000 in 2017 and 2016, respectively.

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, 2017 2016 2015 Revenue Oil and gas operations, net of royalties $ 791   $ 764   $ 820     791     764     820     Operating expenses Oil & gas operations 1,027 1,181 1,800 Corporate general and administrative 408 352 605 Impairment of natural gas and oil properties   2,626     -     2,717     4,061     1,533     5,122   Operating earnings (loss) (3,270 ) (769 ) (4,302 )   Other income (expense) Interest income 25 23 12 Interest expense (24 ) (38 ) (62 ) Gain on prepayment of debt - 888 - Gain on sale of land - 50 - Bad debt expense (recovery) - note receivable - - 1,430 Other income (expense), net   28     (110 )   (32 ) 29 813 1,348   Earnings (loss) from continuing operations (3,241 ) 44 (2,954 )   Earnings from discontinued operations   (5 )     4       332     Net income (loss) applicable to common shares $ (3,246 ) $ 48   $ (2,622 )   Net income (loss) per common share-basic and diluted $ (1.59 ) $ 0.02   $ (1.35 )   Weighted average common and equivalent shares outstanding - basic 2,037 1,947 1,947             NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (amounts in thousands) December 31, 2017 2016 Assets   Current assets Cash and cash equivalents $ 419 $ 113 Accounts receivable from oil and gas sales 67 119 Current portion note receivable   36   206 Total current assets   522   438     Oil and natural gas properties (full cost accounting method) Proved developed and undeveloped oil and gas properties, net of depletion 2,721 5,608   Property and equipment, net of depreciation Land, buildings and equipment - oil and gas operations 661 706 Other   -   25 Total property and equipment 661 731   Note Receivable   301   401   Total assets $ 4,205 $ 7,178             NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - CONTINUED (amounts in thousands, except share amounts)   December 31, 2017 2016 Liabilities and stockholders' equity   Current liabilities Accounts payable - trade (including $412 and $160 in 2017 and 2016 due to related parties) $ 446 $ 238 Accrued expenses 29 59 Current portion of long term debt   81     96   Total current liabilities 556 393   Long-term debt Notes payable less current portion 243 296 Asset retirement obligation   2,770     2,770   Total liabilities 3,569 3,459   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, 2,036,935 and 1,946,935 shares at December 31, 2017 and 2016 21 20 Additional paid-in capital 59,000 58,838 Accumulated deficit   (58,386 )   (55,140 )   636     3,719     Total liabilities & stockholders' equity $ 4,205   $ 7,178    

New Concept Energy, Inc.Gene Bertcher, 800-400-6407info@newconceptenergy.com

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