New Concept Energy, Inc. (NYSE American: GBR), (the “Company” or “NCE”) a Dallas-based oil and gas company, today reported a net loss from continuing operations for the three months ended June 30, 2018 of $174,000 or ($0.07) per share, compared to net loss from continuing operations of $124,000 or ($0.06) per share for the three months ended June 30, 2017.
For the three months ended June 30, 2018, the Company recorded oil and gas revenues of $173,000 as compared to $243,000 for the comparable period of 2017. The decrease was principally due to a decrease in the rate the Company received for the sale of its natural gas. In April 2018 a long term rate agreement expired and the price the Company received for its gas reverted to the existing market price which was less than the rate in the expired agreement.
For the three months ended June 30, 2018, the Company recorded oil and gas operating expenses of $239,000 as compared to $256,000 for the comparable period of 2017. The decrease was due to overall decrease in general operating expenses.
For the three months ended June 30, 2018, corporate general & administrative expenses were $108,000 as compared to $122,000 for the comparable periods in 2017. The decrease was due to a decrease in payroll expenses as well as other administrative costs.
| NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES | |||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||
| (unaudited) | |||||||||
| (amounts in thousands) | |||||||||
June 30, | December 31, | ||||||||
| Assets | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | $ | 278 | $ | 419 | |||||
| Accounts receivable from oil and gas sales | 45 | 67 | |||||||
| Other current assets | 47 | 36 | |||||||
| Total current assets | 370 | 522 | |||||||
| Oil and natural gas properties (full cost accounting method) | |||||||||
| Proved developed and undeveloped oil and gas properties, net of depletion | 2,620 | 2,721 | |||||||
| Property and equipment, net of depreciation | |||||||||
| Land, buildings and equipment - oil and gas operations | 636 | 661 | |||||||
| Total property and equipment | 636 | 661 | |||||||
| Other assets (including $124 due from related parties in 2015) | 268 | 301 | |||||||
| Total assets | $ | 3,894 | $ | 4,205 | |||||
| NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES | |||||||||||
| CONSOLIDATED BALANCE SHEETS - CONTINUED | |||||||||||
| (unaudited) | |||||||||||
| (amounts in thousands, except share amounts) | |||||||||||
June 30, | December 31, | ||||||||||
| Liabilities and stockholders' equity | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable (includes $277 and $412 due to related parties in 2018 & 2017) | $ | 306 | $ | 446 | |||||||
| Accrued expenses | 32 | 29 | |||||||||
| Current portion of long term debt | 58 | 81 | |||||||||
| Total current liabilities | 396 | 556 | |||||||||
| Long-term debt | |||||||||||
| Notes payable less current portion | 229 | 243 | |||||||||
| Asset retirement obligation | 2,770 | 2,770 | |||||||||
| Total liabilities | 3,395 | 3,569 | |||||||||
| Stockholders' equity | |||||||||||
| Preferred stock, Series B | 1 | 1 | |||||||||
| Common stock, $.01 par value; authorized, 100,000,000 | |||||||||||
| shares; issued and outstanding, 2,131,935 shares | |||||||||||
| at June 30, 2018 and December 31, 2017 | 22 | 21 | |||||||||
| Additional paid-in capital | 59,170 | 59,000 | |||||||||
| Accumulated deficit | (58,694 | ) | (58,386 | ) | |||||||
| Total Shareholder Equity | 499 | 636 | |||||||||
| Total liabilities & equity | $ | 3,894 | $ | 4,205 | |||||||
| NEW CONCEPT ENERGY, INC AND SUBSIDIARIES | |||||||||||||||||||||
| CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||
| (amounts in thousands, except per share data) | |||||||||||||||||||||
For the Three | For the Six Months | ||||||||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
| Revenue | |||||||||||||||||||||
| Oil and gas operations, net of royalties | $ | 173 | $ | 243 | $ | 377 | $ | 438 | |||||||||||||
| Operating expenses | |||||||||||||||||||||
| Oil and gas operations | 239 | 256 | 514 | 512 | |||||||||||||||||
| Corporate general and administrative | 108 | 122 | 183 | 222 | |||||||||||||||||
| Total Operating Expenses | 347 | 378 | 697 | 734 | |||||||||||||||||
| Operating earnings (loss) | (174 | ) | (135 | ) | (320 | ) | (296 | ) | |||||||||||||
| Other income (expense) | |||||||||||||||||||||
| Interest income | 4 | 11 | 11 | 15 | |||||||||||||||||
| Interest expense | (5 | ) | (6 | ) | (11 | ) | (13 | ) | |||||||||||||
| Other income (expense) | 1 | 6 | 12 | (2 | ) | ||||||||||||||||
| 0 | 11 | 12 | 0 | ||||||||||||||||||
| Loss from continuing operations | (174 | ) | (124 | ) | (308 | ) | (296 | ) | |||||||||||||
| Earnings (loss) from discontinued operations | 0 | (11 | ) | 0 | 2 | ||||||||||||||||
| Net income (loss) applicable to common shares | $ | (174 | ) | $ | (135 | ) | $ | (308 | ) | $ | (294 | ) | |||||||||
| Net income (loss) per common share-basic and diluted | $ | (0.08 | ) | $ | (0.07 | ) | $ | (0.14 | ) | $ | (0.15 | ) | |||||||||
| Weighted average common and equivalent shares outstanding - basic | 2,132 | 1,947 | 2,132 | 1,947 | |||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20180813005629/en/
Contacts:
Gene Bertcher, 800-400-6407
info@newconceptenergy.com
