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 gain of $188,000 and a loss of $127,000 for the three and nine months ended September 30, 2010, as compared to a net gain of $49,000 and a loss of $12,000 for the comparable periods of 2009.

For the three and nine months ended September 30, 2010, the Company recorded oil and gas revenues of $349,000 and $950,000 as compared to $285,000 and $966,000 for the comparable periods of 2009. The changes in oil and gas revenue were due to changes in the price of oil and gas in the marketplace.

For the three and nine months ended September 30, 2010, the Company recorded revenues of $763,000 and $2,217,000 from its retirement property compared to $685,000 and $2,121,000 for the comparable periods in 2009. The increase was due to a rise in the occupancy rate of the property from prior periods.

For the three and nine months ended September 30, 2010, the Company recorded oil and gas operating expenses of $320,000 and $992,000 as compared to $329,000 and $1,086,000 for the comparable periods of 2009.

For the three and nine months ended September 30, 2010, operating expenses and lease expense at the retirement property were $330,000 and $1,023,000 as compared to $293,000 and $1,016,000 for the comparable periods in 2009.

For the three and nine months ended September 30, 2010, corporate general and administrative expenses were $124,000 and $447,000 as compared to $169,000 and $666,000 for the comparable periods in 2009. The decrease is primarily due to decreased payroll costs and administrative overhead.

For the three and nine months ended September 30, 2010, interest income was $122,000 and $375,000 as compared to $138,000 and $432,000 for the comparable periods in 2009. The decrease is due to a reduction in the receivable on which interest is computed over the comparable periods.

For the three and nine months ended September 30, 2010, interest expense for the three and nine months ended was $31,000 and $93,000 as compared to $31,000 and $92,000 for the comparable periods in 2009.

The Company recorded other expense of $350,000 for the nine months ended September 30, 2010. In 2009, the Company was considering an association with an oil and 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 Months

For the Nine Months

ended September 30,

ended September 30,

2010 2009 2010 2009 Revenue Oil and gas operations, net of royalties $ 349 $ 285 $ 950 $ 966 Real estate operations   763     685     2,217     2,121     1,112     970     3,167     3,087       Operating expenses Oil and gas operations 320 329 992 1,086 Real estate operations 330 293 1,023 1,016 Lease expense 211 242 684 719 Corporate general and administrative 124 169 447 666 Accretion of asset retirement obligation   30     -     90     -     1,015     1,033     3,236     3,487   Operating earnings (loss) 97 (63 ) (69 ) (400 )   Other income (expense) Interest income 122 138 375 432 Interest expense (31 ) (31 ) (93 ) (92 ) Gain on sale of assets, net - - 10 - Other income (expense), net   -     5     (350 )   48   Income/(Expense)   91     112     (58 )   388       Net income (loss) applicable to common shares $ 188   $ 49   $ (127 ) $ (12 )  

Net income (loss) per common share - basic and diluted

$ 0.10   $ 0.03   $ (0.07 ) $ (0.01 )   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)  

September 30, 2010

  December 31, 2009   Assets   Current assets Cash and cash equivalents $ 134 $ 155 Accounts receivable from oil and gas sales 244 203 Note and interest receivable – related party 10,217 11,206 Other current assets   88   567 Total current assets   10,683   12,131     Oil and natural gas properties (full cost accounting method) Proved developed and undeveloped oil and gas properties, net of depletion 11,353 11,372   Property and equipment, net of depreciation Land, buildings and equipment - oil and gas operations 1,316 1,337 Other   152   149 Total property and equipment 1,468 1,486   Other assets   173   132   Total assets $ 23,677 $ 25,121     NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - CONTINUED (amounts in thousands, except share amounts)    

September 30,2010

December 31,2009

  Liabilities and stockholders' equity   Current liabilities Accounts payable - trade $ 176 $ 154 Accrued expenses   1,283     2,711   Total current liabilities 1,459 2,865   Long-term debt Notes payable 1,281 1,198 Asset retirement obligation 2,540 2,450 Other long-term liabilities   243     326   Total liabilities 5,523 6,839  

Stockholders' equity

Preferred stock, Series B 1 1 Common stock, $.01 par value; authorized, 100,000,000 shares; issued and outstanding, 1,946,935 shares

at December 31, 2009 and 2008

20 20 Additional paid-in capital 58,838 58,838 Accumulated deficit   (40,705 )   (40,577 )     18,154     18,282     Total liabilities & equity $ 23,677   $ 25,121