GBR New Concept Energy Inc

New Concept Energy, Inc. (AMEX: GBR), (“the Company” or “NCE”), a Dallas-based oil and gas company, today reported a net loss of $275,000 and $315,000 for the three and six months ended June 30, 2010, as compared to a net loss of $84,000 and $61,000 for the comparable periods of 2009.

For the three and six months ended June 30, 2010, the Company recorded oil and gas revenues of $331,000 and $601,000 as compared to $287,000 and $681,000 for the comparable period of 2009. The changes in oil & gas revenue was due changes in the price of oil and gas in the marketplace.

The Company recorded oil and gas operating expenses for the three and six months ended June 30, 2010, of $316,000 and $672,000, as compared to $371,000 and $757,000 for the comparable period of 2009. The decrease was due to a decrease in payroll costs.

For the three and six months ended June 30, 2010, corporate general & administrative expenses were $124,000 and $323,000 as compared to $235,000 and $497,000 for the comparable periods in 2009. The decrease is primarily due to decreased payroll costs.

Interest income for the three and six months ended June 30, 2010, was $114,000 and $253,000 as compared to $113,000 and $294,000 for the comparable periods in 2009. The decrease is primarily due to decreased receivable on which interest is computed over the comparable periods.

The Company recorded an other expense of $350,000 for the six months ended June 30, 2010. In 2009, the Company was considering an association with an oil & gas company in South Texas that was operating under Chapter 11 of the bankruptcy code. During 2009, we invested $350,000 in the South Texas company through both a loan and other costs. In 2010, the bankruptcy court converted the bankruptcy filing to chapter 7 and ordered the liquidation of the South Texas company. It is unlikely our company will recover any of its investment.

  NEW CONCEPT ENERGY, INC AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS (amounts in thousands, except per share data)        

For the Three Monthsended June 30,

For the Six Monthsended June 30,

  2010     2009     2010     2009   Revenue Oil and gas operations, net of royalties $ 331 $ 287 $ 601 $ 681 Real estate operations   751     762     1,454     1,436     1,082     1,049     2,055     2,117       Operating expenses Oil and gas operations 316 371 672 757 Real estate operations 368 383 693 723 Lease expense 234 238 473 477 Corporate general and administrative 124 235 323 497 Accretion of asset retirement obligation   30     -     60     -     1,072     1,227     2,221     2,454   Operating earnings (loss) 10 (178 ) (166 ) (337 )   Other income (expense) Interest income 114 113 253 294 Interest expense (31 ) (31 ) (62 ) (61 ) Gain on sale of assets, net - - 10 - Other income (expense), net   (368 )   12     (350 )   43   Expense   (285 )   94     (149 )   276       Net income (loss) applicable to common shares $ (275 ) $ (84 ) $ (315 ) $ (61 )   Net income (loss) per common share-basic and diluted $ (0.12 ) $ (0.04 ) $ (0.16 ) $ (0.03 )   Weighted average common and equivalent shares outstanding - basic 1,947 1,947 1,947 1,947  

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (amounts in thousands)   June 30, 2010   December 31, 2009   Assets   Current assets Cash and cash equivalents $ 102 $ 155 Accounts receivable from oil and gas sales 247 203 Note and interest receivable – related party 10,035 11,206 Other current assets   201   567 Total current assets   10,585   12,131     Oil and natural gas properties (full cost accounting method) Proved developed and undeveloped oil and gas properties, net of depletion 11,374 11,372   Property and equipment, net of depreciation Land, buildings and equipment - oil and gas operations 1,323 1,337 Other 159 149 Total property and equipment   1,482   1,486   Other assets   214   132   Total assets $ 23,655 $ 25,121   NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - CONTINUED (amounts in thousands, except share amounts)    

June 30,2010

 

December 31,2009

  Liabilities and stockholders' equity   Current liabilities Accounts payable - trade $ 204 $ 154 Accrued expenses (including $661 and $638 to related parties in 2010 and 2009)   1,444     2,711   Total current liabilities 1,648 2,865   Long-term debt Notes payable 1,253 1,198 Asset retirement obligation 2,510 2,450 Other long-term liabilities   277     326   Total liabilities 5,688 6,839   Stockholders' equity Preferred stock, Series B 1 1 Common stock, $.01 par value; authorized, 100,000,000 shares; issued and outstanding, 1,946,939 shares at December 31, 2009 and 2008 20 20 Additional paid-in capital 58,838 58,838 Accumulated deficit   (40,892 )   (40,577 )     17,967     18,282     Total liabilities & equity $ 23,655   $ 25,121