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 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 |
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CONSOLIDATED BALANCE SHEETS |
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(unaudited) |
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(amounts in thousands) |
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| September 30, 2019 |
December 31, 2018 |
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| (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 |
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CONSOLIDATED STATEMENT OF OPERATIONS |
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(unaudited) |
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(amounts in thousands, except per share data) |
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For the Three Months ended September 30, |
For the Nine Months ended September 30, |
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|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
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| Revenue | ||||||||||||||||
| Oil and gas operations, net of royalties | $ |
127 |
|
$ |
167 |
|
$ |
471 |
|
$ |
544 |
|
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| Operating expenses | ||||||||||||||||
| Oil and gas operations |
|
176 |
|
|
186 |
|
|
586 |
|
|
700 |
|
||||
| Corporate general and administrative |
|
92 |
|
|
99 |
|
|
314 |
|
|
282 |
|
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| 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 |
) |
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| 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 |
) |
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| Weighted average common and equivalent shares outstanding - basic |
|
5,132 |
|
|
5,132 |
|
|
5,132 |
|
|
5,132 |
|
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