AP NEWS
Press release content from Business Wire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.

New Concept Energy, Inc. Reports Third Quarter 2019 Results

November 14, 2019

DALLAS--(BUSINESS WIRE)--Nov 14, 2019--

New Concept Energy, Inc. (NYSE American: GBR), ( the “Company” or “NCE”) a Dallas-based oil and gas company, today reported a net loss for the three months ended September 30, 2019 of $2,320,000 or ($0.45) per share, compared to a net loss of $121,000 or ($0.02) per share for the three months ended September 30, 2018.

The Company reported a net loss of $2,335,000 for the nine months ended September 30, 2019, as compared to net loss of $429,000 for the similar period in 2018.

For the three months ended September 30, 2019, the Company recorded oil and gas revenues of $127,000 as compared to $167, 000 for the comparable period of 2018. The decrease was principally due to a decrease in the rate the Company received for the sale of its natural gas.

For the three months ended September 30, 2019, the Company recorded oil and gas operating expenses of $2,461,000 as compared to $186,000 for the comparable period of 2018. In September 2019, the Company unsuccessfully drilled a well which resulted in a dry hole. As the well did not prove up the estimated probable and possible reserves, the Company had to deem the applicable reserve estimates as impaired. In the third quarter, the Company booked an impairment expense of $2,285,000 which represents a reduction of both the estimated probable and possible reserves as well as the cost of drilling the failed well.

For the three months ended September 30, 2019, corporate general & administrative expenses were $92,000 as compared to $99,000 for the comparable periods in 2018.

 

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(unaudited)

(amounts in thousands)

September 30,
2019
December 31,
2018
(unaudited)(audited)
Assets
 
Current assets
Cash and cash equivalents

$

42

$

361

Accounts receivable from oil and gas sales

 

69

 

72

Current portion notes receivable (including $4,120 and 4,017 due to related parties in 2019 and 2018)

 

4,162

 

4,063

Other current assets

 

11

 

-

Total current assets

 

4,284

 

4,496

 
 
Oil and natural gas properties (full cost accounting method)
Proved developed and undeveloped oil and gas properties, net of depletion

 

799

 

2,517

 
Property and equipment, net of depreciation
Land, buildings and equipment - oil and gas operations

 

671

 

618

 
 
Other assets

 

222

 

251

 
Total assets

$

5,976

$

7,882

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - CONTINUED
(unaudited)
(amounts in thousands, except par value amounts)
 
September 30,
2019
December 31,
2018
 
Liabilities and stockholders' equity
 
Current liabilities
Accounts payable (includes $117 and $37 due to related parties in 2019 and 2018)

$

519

 

$

59

 

Accrued expenses

 

29

 

 

32

 

Current portion of long term debt

 

51

 

 

59

 

Total current liabilities

 

599

 

 

150

 

 
Long-term debt
Notes payable less current portion

 

181

 

 

201

 

Asset retirement obligation

 

2,770

 

 

2,770

 

Total liabilities

 

3,550

 

 

3,121

 

 
Stockholders' equity
Preferred stock, Series B

 

1

 

 

1

 

Common stock, $.01 par value; authorized, 100,000,000
shares; issued and outstanding, 5,131,934 shares at
September 30, 2019 and December 31, 2018

 

51

 

 

51

 

Additional paid-in capital

 

63,579

 

 

63,579

 

Accumulated deficit

 

(61,205

)

 

(58,870

)

 
Total Shareholder Equity

 

2,426

 

 

4,761

 

 
Total liabilities & equity

$

5,976

 

$

7,882

 

NEW CONCEPT ENERGY, INC AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

(unaudited)

(amounts in thousands, except per share data)

 

For the Three Months ended September 30,

For the Nine Months ended September 30,

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenue
Oil and gas operations, net of royalties

$

127

 

$

167

 

$

471

 

$

544

 

 
 
Operating expenses
Oil and gas operations

 

176

 

 

186

 

 

586

 

 

700

 

Corporate general and administrative

 

92

 

 

99

 

 

314

 

 

282

 

Impairment of oil and natural gas properties

 

2,285

 

 

-

 

 

2,285

 

 

-

 

Total operating expenses

 

2,553

 

 

285

 

 

3,185

 

 

982

 

Operating earnings (loss)

 

(2,426

)

 

(118

)

 

(2,714

)

 

(438

)

 
 
Other income (expense)
Interest income

 

63

 

 

5

 

 

192

 

 

16

 

Interest expense

 

(3

)

 

(6

)

 

(12

)

 

(17

)

Other income (expense)

 

46

 

 

(2

)

 

199

 

 

10

 

 

106

 

 

(3

)

 

379

 

 

9

 

 
Net (loss) applicable to common shares

 

(2,320

)

 

(121

)

 

(2,335

)

 

(429

)

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

$

(0.45

)

$

(0.02

)

$

(0.45

)

$

(0.08

)

 
 
Weighted average common and equivalent shares outstanding - basic

 

5,132

 

 

5,132

 

 

5,132

 

 

5,132

 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20191114005724/en/

CONTACT: New Concept Energy, Inc.

Gene Bertcher, (800) 400-6407

info@newconceptenergy.com

KEYWORD: TEXAS UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: OIL/GAS ENERGY

SOURCE: New Concept Energy, Inc.

Copyright Business Wire 2019.

PUB: 11/14/2019 04:00 PM/DISC: 11/14/2019 04:01 PM

http://www.businesswire.com/news/home/20191114005724/en