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 $66,000 and $166,000 for the three and six months ended June 30, 2011, as compared to a net loss of $275,000 and $315,000 for the comparable periods of 2010.

For the three and six months ended June 30, 2011, the Company recorded oil and gas revenues of $280,000 and $560,000 as compared to $331,000 and $601,000 for the comparable period of 2010. The changes in oil & gas revenue were due to changes in the price of oil and gas in the marketplace.

For the three and six months ended June 30, 2011, the Company recorded revenues of $733,000 and $1,462,000 from its retirement property compared to $751,000 and $1,454,000 for the comparable periods in 2010. The variances between comparable periods are due to occupancy fluctuations.

For the three and six months ended June 30, 2011, the Company recorded oil and gas operating expenses of $365,000 and $700,000 as compared to $316,000 and $672,000 for the comparable period of 2010. The increase was due to an increase in drilling and related expenses.

For the three and six months ended June 30, 2011, operating expenses and lease expense at the retirement property were $514,000 and $1,095,000 as compared to $602,000 and $1,095,000 for the comparable periods in 2010.

For the three and six months ended June 30, 2011, corporate general & administrative expenses were $126,000 and $250,000 as compared to $124,000 and $323,000 for the comparable periods in 2010. The decrease is primarily due to decreased payroll costs.

For the three and six months ended June 30, 2011, interest income was $120,000 and $239,000 as compared to $114,000 and $253,000 for the comparable periods in 2010. The decrease is due to an overall reduction in the receivable on which interest is computed over the comparable periods.

    NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATION (amounts in thousands, except per share data)         For the Three Months ended June 30, For the Six Months ended June 30, 2011 2010 2011 2010 Revenue Oil and gas operations, net of royalties $ 280 $ 331 $ 560 $ 601 Real estate operations   733     751     1,462     1,454     1,013     1,082     2,022     2,055       Operating expenses Oil and gas operations 365 316 700 672 Real estate operations 321 368 711 693 Lease expense 193 234 384 473 Corporate general and administrative 126 124 250 323 Accretion of asset retirement obligation   32     30     64     60     1,037     1,072     2,109     2,221   Operating earnings (loss) (24 ) 10 (87 ) (166 )   Other income (expense) Interest income 120 114 239 253 Interest expense (31 ) (31 ) (62 ) (62 ) Gain on sale of assets, net - - - 10 Other income (expense), net   1     (368 )   73     (350 ) Income/(Expense)   90     (285 )   250     (149 )     Net income (loss) applicable to common shares $ 66   $ (275 ) $ 163   $ (315 )   Net income (loss) per common share-basic and diluted $ 0.03   $ (0.14 ) $ 0.08   $ (0.16 )   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,   December 31, 2011 2010 Assets   Current assets Cash and cash equivalents $ 32 $ 59 Accounts receivable from oil and gas sales 209 223 Other current assets   16   14 Total current assets   257   296   Note and interest receivable – related party 9,885 10,361   Oil and natural gas properties (full cost accounting method) Proved developed and undeveloped oil and gas properties, net of depletion 11,736 11,789   Property and equipment, net of depreciation Land, buildings and equipment - oil and gas operations 1,381 1,395 Other   151   156 Total property and equipment 1,532 1,551   Other assets   475   70   Total assets $ 23,885 $ 24,067     NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - CONTINUED (amounts in thousands, except share amounts)     June 30, December 31, 2011 2010   Liabilities and stockholders' equity   Current liabilities Accounts payable - trade $ 208 $ 83 Accrued expenses   28     156   Total current liabilities 236 239   Long-term debt Notes payable 1,367 1,308 Payable - related parties 486 953 Asset retirement obligation 2,637 2,573 Other long-term liabilities   726     723   Total liabilities 5,452 5,796   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 June 30, 2011 and December 31, 2010 20 20 Additional paid-in capital 58,838 58,838 Accumulated deficit   (40,426 )   (40,588 )     18,433     18,271     Total liabilities & equity $ 23,885   $ 24,067