DALLAS--(BUSINESS WIRE)--New Concept Energy, Inc. (NYSE American: GBR) (the “Company” or “NCE”), a Dallas-based oil and gas company, today reported a net income applicable to common shares for the three months ended March 31, 2019 of $126,000 or $0.02 per share, compared to net loss of $134,000 or ($0.07) per share for the three months ended March 31, 2018. During the last nine months of 2018 the Company issued 3,094,000 shares of common stock increasing the number of shares outstanding while raising $4,609,000 in cash which the Company anticipates will be used for future drilling expenses, acquisitions and working capital.
For the three months ended March 31, 2019, the Company recorded oil and gas revenues of $180,000 as compared to $204,000 for the comparable period of 2018. The reduction was principally due to the dollar amount per MCF the Company received from the sale of natural gas.
For the three months ended March 31, 2019, the Company recorded oil and gas operating expenses of $179,000 as compared to $275,000 for the comparable period of 2018. The decrease was due to a decrease in depletion and depreciation, consulting fees and general operating expenses.
For the three months ended March 31, 2019, corporate general & administrative expenses were $88,000 as compared to $74,000 for the comparable period in 2018. The increase was due, for the most part, to consulting fees paid by the Company regarding oil and gas matters.
| NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (amounts in thousands) | ||||||||
|
March 31, |
December 31, |
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| Assets | (Unaudited) | (Audited) | ||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 460 | $ | 361 | ||||
| Accounts receivable from oil and gas sales | 93 | 72 | ||||||
| Current portion note receivable (including $4,076 and $4,017 in 2019 and 2018 from related parties | 4,115 | 4,063 | ||||||
| Other current assets | 34 | - | ||||||
| Total current assets | 4,702 | 4,496 | ||||||
| Oil and natural gas properties (full cost accounting method) | ||||||||
| Proved developed and undeveloped oil and gas properties, net of depletion | 2,503 | 2,517 | ||||||
| Property and equipment, net of depreciation | ||||||||
| Land, buildings and equipment - oil and gas operations | 610 | 618 | ||||||
| Note Receivable | 244 | 251 | ||||||
| Total assets | $ | 8,059 | $ | 7,882 | ||||
| NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED BALANCE SHEETS - CONTINUED | ||||||||||
| (dollars in thousands, except par value amount) | ||||||||||
|
March 31, |
December 31, |
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| (Unaudited) | (Audited) | |||||||||
| Liabilities and stockholders' equity | ||||||||||
| Current liabilities | ||||||||||
| Accounts payable - (including $97 and $37 due to related parties in 2019 and 2018) | $ | 123 | $ | 59 | ||||||
| Accrued expenses | 33 | 32 | ||||||||
| Current portion of long term debt | 59 | 59 | ||||||||
| Total current liabilities | 215 | 150 | ||||||||
| Long-term debt | ||||||||||
| Notes payable less current portion | 187 | 201 | ||||||||
| Asset retirement obligation | 2,770 | 2,770 | ||||||||
| Total liabilities | 3,172 | 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 and 2,036,935 shares at March 31, 2019 and December 31, 2018 |
51 | 51 | ||||||||
| Additional paid-in capital | 63,579 | 63,579 | ||||||||
| Accumulated deficit | (58,744 | ) | (58,870 | ) | ||||||
| Total shareholders' equity | 4,887 | 4,761 | ||||||||
| Total liabilities & equity | $ | 8,059 | $ | 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 |
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| 2019 | 2018 | |||||||||
| Revenue | ||||||||||
| Oil and gas operations, net of royalties | $ | 180 | $ | 204 | ||||||
| Total Revenues | 180 | 204 | ||||||||
| Operating expenses | ||||||||||
| Oil and gas operations | 179 | 275 | ||||||||
| Corporate general and administrative | 88 | 74 | ||||||||
| Total Operating Expenses | 267 | 350 | ||||||||
| Operating earnings (loss) | (87 | ) | (146 | ) | ||||||
| Other income (expense) | ||||||||||
| Interest income | 65 | 7 | ||||||||
| Interest expense | (5 | ) | (6 | ) | ||||||
| Other income (expense), net | 153 | 11 | ||||||||
| Expense | 213 | 12 | ||||||||
| Earnings (loss) applicable to common shares | 126 | (134 | ) | |||||||
| Net income (loss) per common share-basic and diluted | $ | 0.02 | $ | (0.07 | ) | |||||
| Weighted average common and equivalent shares outstanding - basic | 5,131 | 2,037 | ||||||||
