Attached files
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| 8-K - NEW CONCEPT ENERGY, INC. - New Concept Energy, Inc. | nce8k081611.htm |
| For Immediate Release | Contact: Gene Bertcher |
| 972) 407-8400 |
NEW CONCEPT ENERGY, INC.
REPORTS 2nd QUARTER 2011 RESULTS
Dallas, Texas (Business Wire) August 12,2011: New Concept Energy, Inc. (AMEX: GBR), ("the Company" or "NCE"), a Dallas-based oil and gas company, today reported a net gain of $66,000 and $166,000 for the three and six months ended June 30, 2011, as compared to a net loss of $275,000 and $315,000 for the comparable periods of 2010.
For the three and six months ended June 30, 2011, the Company recorded oil and gas revenues of $280,000 and $560,000 as compared to $331,000 and $601,000 for the comparable period of 2010. The changes in oil & gas revenue was due changes in the price of oil and gas in the marketplace.
For the three and six months ended June 30, 2011, the Company recorded revenues of $733,000 and $1,462,000 from its retirement property compared to $751,000 and $1,454,000 for the comparable periods in 2010. The variances between comparable periods are due to occupancy fluctuations.
For the three and six months ended June 30, 2011, the Company recorded oil and gas operating expenses of $365,000 and $700,000 as compared to $316,000 and $672,000 for the comparable period of 2010. The increase was due to an increase in drilling and related expenses.
For the three and six months ended June 30, 2011, operating expenses and lease expense at the retirement property were $514,000 and $1,095,000 as compared to $602,000 and $1,095,000 for the comparable periods in 2010.
For the three and six months ended June 30, 2011, corporate general & administrative expenses were $126,000 and $250,000 as compared to $124,000 and $323,000 for the comparable periods in 2010. The decrease is primarily due to decreased payroll costs.
For the three and six months ended June 30, 2011, interest income was $120,000 and $239,000 as compared to $114,000 and $253,000 for the comparable periods in 2010. The decrease is due to an overall reduction in the receivable on which interest is computed over the comparable periods.
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NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF OPERATION
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(unaudited)
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(amounts in thousands, except per share data)
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For the Three Months ended
June 30,
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For the Six Months ended
June 30,
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2011
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2010
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2011
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2010
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Revenue
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Oil and gas operations, net of royalties
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$ | 280 | $ | 331 | $ | 560 | $ | 601 | ||||||||
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Real estate operations
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733 | 751 | 1,462 | 1,454 | ||||||||||||
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1,013 | 1,082 | 2,022 | 2,055 | ||||||||||||
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Operating expenses
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Oil and gas operations
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365 | 316 | 700 | 672 | ||||||||||||
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Real estate operations
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321 | 368 | 711 | 693 | ||||||||||||
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Lease expense
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193 | 234 | 384 | 473 | ||||||||||||
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Corporate general and administrative
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126 | 124 | 250 | 323 | ||||||||||||
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Accretion of asset retirement obligation
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32 | 30 | 64 | 60 | ||||||||||||
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1,037 | 1,072 | 2,109 | 2,221 | ||||||||||||
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Operating earnings (loss)
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(24 | ) | 10 | (87 | ) | (166 | ) | |||||||||
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Other income (expense)
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Interest income
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120 | 114 | 239 | 253 | ||||||||||||
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Interest expense
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(31 | ) | (31 | ) | (62 | ) | (62 | ) | ||||||||
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Gain on sale of assets, net
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- | - | - | 10 | ||||||||||||
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Other income (expense), net
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1 | (368 | ) | 73 | (350 | ) | ||||||||||
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Income/(Expense)
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90 | (285 | ) | 250 | (149 | ) | ||||||||||
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Net income (loss) applicable to common shares
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$ | 66 | $ | (275 | ) | $ | 163 | $ | (315 | ) | ||||||
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Net income (loss) per common share-basic and diluted
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$ | 0.03 | $ | (0.14 | ) | $ | 0.08 | $ | (0.16 | ) | ||||||
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Weighted average common and equivalent shares outstanding - basic
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1,947 | 1,947 | 1,947 | 1,947 | ||||||||||||
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NEW CONCEPT ENERGY ENERGY, INC. AND SUBSIDARIES
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CONSOLIDATED BALANCE SHEETS
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(unaudited)
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(amounts in thousands)
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June 30,
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December 31,
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2011
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2010
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Assets
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Current assets
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Cash and cash equivalents
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$ | 32 | $ | 59 | ||||
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Accounts receivable from oil and gas sales
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209 | 223 | ||||||
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Other current assets
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16 | 14 | ||||||
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Total current assets
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257 | 296 | ||||||
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Note and interest receivable – related party
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9,885 | 10,361 | ||||||
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Oil and natural gas properties (full cost accounting method)
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Proved developed and undeveloped oil and gas properties, net of depletion
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11,736 | 11,789 | ||||||
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Property and equipment, net of depreciation
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Land, buildings and equipment - oil and gas operations
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1,381 | 1,395 | ||||||
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Other
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151 | 156 | ||||||
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Total property and equipment
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1,532 | 1,551 | ||||||
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Other assets
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475 | 70 | ||||||
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Total assets
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$ | 23,885 | $ | 24,067 | ||||
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NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
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CONSOLIDATED BALANCE SHEETS - CONTINUED
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(unaudited)
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(amounts in thousands, except share amounts)
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June 30,
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December 31,
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2011
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2010
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Liabilities and stockholders' equity
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Current liabilities
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Accounts payable - trade
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$ | 208 | $ | 83 | ||||
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Accrued expenses
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28 | 156 | ||||||
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Total current liabilities
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236 | 239 | ||||||
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Long-term debt
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Notes payable
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1,367 | 1,308 | ||||||
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Payable - related parties
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486 | 953 | ||||||
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Asset retirement obligation
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2,637 | 2,573 | ||||||
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Other long-term liabilities
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726 | 723 | ||||||
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Total liabilities
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5,452 | 5,796 | ||||||
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Stockholders' equity
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Preferred stock, Series B
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1 | 1 | ||||||
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Common stock, $.01 par value; authorized, 100,000,000
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shares; issued and outstanding, 1,946,935 shares
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at June 30, 2011 and December 31, 2010
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20 | 20 | ||||||
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Additional paid-in capital
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58,838 | 58,838 | ||||||
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Accumulated deficit
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(40,426 | ) | (40,588 | ) | ||||
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18,433 | 18,271 | ||||||
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Total liabilities & equity
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$ | 23,885 | $ | 24,067 | ||||