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 March 31, 2015 of $314,000 or $0.16 per share, compared to a net loss of $40,000 or $(0.02) per share for the three months ended March 31, 2014.

For the three months ended March 31, 2015, the Company recorded oil and gas revenues of $172,000 as compared to $344,000 for the comparable period of 2014. The decrease in oil & gas revenue for the three months ended March 31, 2015 was $172,000. The average price was $46 per barrel during the first quarter of 2015 as compared to $93 per barrel in 2014. The company estimates that approximately $100,000 of the decrease was due to the price of oil. During the first quarter of 2015 there was unusual harsh weather in the areas where the Company maintains its wells. The weather severely hampered the Company’s ability to repair and maintain well equipment as well as limited the pickups of oil from wells that were located in areas that were impossible to reach. The Company believes that the shortfall in revenue beyond the drop in price of oil were weather related.

The Company recorded revenues of $717,000 for the three months ended March 31, 2015 from its retirement property compared to $725,000 for the comparable period in 2014.

For the three months ended March 31, 2015, the Company recorded operating expenses of $1,279,000 as compared to $1,311,000 for the comparable period in 2014.

In 2011 the Company had a $10.3 million note receivable and determined that the financial condition of the debtor had deteriorated and there could be no assurance that the amount owed would or could be collected. At that time the company recorded a loss and established a reserve of $10.3 million. In 2013 and 2012 the Company recorded a gain from the partial recovery of the previously reserved note receivable of $1.6 million and $2.1 million, respectively. For the three months ended March 31, 2015 the company recorded an additional recovery of $738,000.

         

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (unaudited) (amounts in thousands)

March 31,2015

December 31,2014

  Assets   Current assets Cash and cash equivalents $ 412 $ 300 Accounts receivable from oil and gas sales 91 216 Other current assets   166   182 Total current assets   669   698     Oil and natural gas properties (full cost accounting method) Proved developed and undeveloped oil and gas properties, net of depletion 8,771 8,809   Property and equipment, net of depreciation Land, buildings and equipment - oil and gas operations 1,450 1,476 Other   162   162 Total property and equipment 1,612 1,638   Other assets (including $122,000 due from related parties in 2014)   1,008   1,129   Total assets $ 12,060 $ 12,274             NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - CONTINUED (unaudited) (amounts in thousands, except share amounts)  

March 31,2015

December 31,2014

  Liabilities and stockholders' equity   Current liabilities Accounts payable - (including $494,000 due to related parties in 2014 and 2013) $ 235 $ 673 Accrued expenses 212 229 Current portion of long term debt   864     881   Total current liabilities 1,311 1,783   Long-term debt Notes payable less current portion 1,372 1,428 Asset retirement obligation   2,770     2,770   Total liabilities 5,453 5,981   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 March 31, 2015 and December 31, 2014 20 20 Additional paid-in capital 58,838 58,838 Accumulated deficit   (52,252 )   (52,566 )     6,607     6,293     Total liabilities & equity $ 12,060   $ 12,274              

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS (unaudited) (amounts in thousands, except per share data)  

For the Three Months endedMarch 31,

2015 2014 Revenue Oil and gas operations, net of royalties $ 172 $ 344 Real estate operations   717     725     889     1,069       Operating expenses Oil and gas operations 470 483 Real estate operations 410 396 Real Estate - lease expense 245 240 Corporate general and administrative   154     192     1,279     1,311   Operating earnings (loss) (390 ) (242 )   Other income (expense) Interest income - 1 Interest expense (26 ) (31 ) Recovery of bad debt expense 738 - Other income (expense), net   (8 )   232   Expense   704     202       Net income (loss) applicable to common shares $ 314   $ (40 )   Net income (loss) per common share-basic and diluted $ 0.16   $ 0.02     Weighted average common and equivalent shares outstanding - basic 1,947 1,947

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