GBR New Concept Energy Inc

New Concept Energy, Inc. (NYSE MKT: GBR), (the “Company” or “NCE”) a Dallas-based oil and gas company, today reported net income for the three months ended June 30, 2013 of $138,000 or $0.07 per share, compared to a net loss of $169,000 or $(0.09) per share for the three months ended June 30, 2012.

For the three months ended June 30, 2013, the Company recorded oil and gas revenues, net of royalty expenses of $384,000 as compared to $325,000 for the comparable period of 2012. The changes in oil and gas revenue was due to new oil wells that were drilled in late 2012.

The Company recorded revenues of $666,000 for the three months ended June 30, 2013 from its retirement property compared to $663,000 for the comparable period in 2012.

For the three months ended June 30, 2013, the Company recorded oil and gas operating expenses of $493,000 as compared to $453,000 for the comparable period of 2012. The increase was partially due to an increase in depletion expense of $20,000. The marked decrease in the market price being paid for natural gas resulted in a modification in the valuation the Company placed on its gas reserves which impacted the anticipated production life of its wells. This led to an acceleration of the depletion expense being recorded. The balance of the increases in operating expenses were due to an overall increase in non-payroll related expenses.

For the three months ended June 30, 2013, operating expenses at the retirement property were $383,000 as compared to $353,000 for the comparable period in 2012. The increases in operating expenses were due to an overall increase in non-payroll related expenses.

For the three months ended June 30, 2013, corporate general & administrative expenses were $170,000 as compared to $134,000 for the comparable period in 2012. The increase is primarily due to legal fees incurred by the company to defend itself against certain lawsuits.

For the three months ended June 30, 2013, the Company recorded a bad debt expense recovery of $394,000 with respect to a note receivable that was fully reserved in 2011. During 2012 and the first six months of 2013 the Company has received $2.8 million in payments toward recovery of the note.

     

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (unaudited) (amounts in thousands)  

June 30,2013

December 31,2012

  Assets   Current assets Cash and cash equivalents $ 960 $ 398 Accounts receivable from oil and gas sales 236 210 Other current assets   6   2 Total current assets   1,202   610     Oil and natural gas properties (full cost accounting method) Proved developed and undeveloped oil and gas properties, net of depletion 9,432 9,717   Property and equipment, net of depreciation Land, buildings and equipment - oil and gas operations 1,461 1,410 Other   193   204 Total property and equipment 1,654 1,614  

Other assets (including $119,625 and $161,300 due from related parties in 2013 and 2012

  576   543   Total assets $ 12,864 $ 12,484       NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - CONTINUED (unaudited) (amounts in thousands, except share amounts)  

June 30,2013

December 31,2012

  Liabilities and stockholders' equity   Current liabilities Accounts payable - trade $ 137 $ 38 Accrued expenses 232 173 Current portion of long term debt   48     93   Total current liabilities 417 304   Long-term debt Notes payable less current portion 2,321 2,273 Asset retirement obligation 2,770 2,770 Other long-term liabilities   541     491   Total liabilities 6,049 5,838   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, 2013 and December 31, 2012 20 20 Additional paid-in capital 58,838 58,838 Accumulated deficit   (52,044 )   (52,213 )     6,815     6,646     Total liabilities & equity $ 12,864   $ 12,484             NEW CONCEPT ENERGY, INC AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS (unaudited) (amounts in thousands, except per share data)  

For the Three Monthsended June 30,

For the Six Monthsended June 30,

2013 2012 2013 2012 Revenue Oil and gas operations, net of royalties $ 384 $ 325 $ 724 $ 615 Real estate operations   666     663     1,346     1,337     1,050     988     2,070     1,952       Operating expenses Oil and gas operations 493 453 949 924 Real estate operations 383 353 769 719 Lease expense 236 231 472 462 Corporate general and administrative 170 134 343 293 Accretion of asset retirement obligation - 34 - 68 Impairment of natural gas and oil properties   -     -     -     912     1,282     1,205     2,533     3,378   Operating earnings (loss) (232 ) (217 ) (463 ) (1,426 )     Other income (expense) Interest income 2 - 8 - Interest expense (24 ) (56 ) (73 ) (118 ) Recovery of bad debt expense 394 - 733 - Other income (expense), net   (2 )   104     (36 )   108   Other income (expense)   370     48     632     (10 )    

Net income (loss) applicable to common shares

$ 138   $ (169 ) $ 169   $ (1,436 )

 

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

$ 0.07   $ (0.09 ) $ 0.09   $ (0.74 )   Weighted average common and equivalent shares outstanding - basic 1,947 1,947 1,947 1,947

New Concept Energy Inc.Gene Bertcher, 972-407-8400info@newconceptenergy.comorInvestor Relations, 800-400-6407