Business Wire | Nov 16, 2020 05:17PM EST

New Concept Energy, Inc. Reports Third Quarter 2020 Results

Nov. 16, 2020

DALLAS--(BUSINESS WIRE)--Nov. 16, 2020--New Concept Energy, Inc. (NYSE American: GBR), ( the "Company" or "NCE") a Dallas-based company, today reported net income for the three months ended September 30, 2020 of $2,182,000 or ($0.43) per share, compared to a net loss of $2,320,000 or ($0.45) per share for the three months ended September 30, 2019.

For the three months ended September 30, 2020, the Company recorded net revenue from continuing operations of $82,000 and net income from discontinued operations of $2,100,000. For the three months ended September 30, 2019, the Company recorded $22,000 from continuing operations and a loss of $2,342,000 from discontinued operations.

On August 31, 2020 the Company sold its entire oil and gas operation for $85,000 to an independent third party. In prior years the Company has accrued a liability of $2,745,000 to plug and abandon the existing wells. This obligation was assumed by the buyer. Upon the sale of the wells the Company recorded a gain of $2,138,000.

In September 2019 the Company wrote down the accounting value of its oil and gas reserves by $2,285,000.

For the three months ended September 30, 2020 the Company reported other income of $84,000 which represents a tax refund for taxes paid in prior years.

The Company continues to own approximately 190 acres of land located in Parkersburg West Virginia. Located on the land are four structures totaling approximately 53,000 square feet. Of this total area the main industrial / office building contains approximately 24,800 square feet of which approximately 16,000 square feet is leased at a rate of $101,000 per annum.

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(unaudited)

(dollars in thousands, except par value amount) September 30, December 31, 2020 2019 (unaudited) (audited)Assets Current assets Cash and cash $ 42 $ 22equivalents Current portionnotes receivable (including $3,578 3,618 4,046and $4,005 due torelated parties in2020 and 2019) Other current assets 104 -

Total current assets 3,764 4,068

Property andequipment, net of depreciation Land, buildings and equipment 659 668

Assets held for sale - 840

Other assets 181 214

Total assets $ 4,604 $ 5,790

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS - CONTINUED(unaudited) (dollars in thousands, except par value amount) September 30, December 31, 2020 2019 Liabilitiesand stockholders'equity Current liabilities Accountspayable (includes $32and $180 due $ 39 $ 226 to relatedparties in2020 and2019) Accrued expenses 18 20

Current portion of 40 44 long termdebtTotal current liabilities 97 290

Long-term debt Notes payable less 150 177 currentportion Liabilities - 2,914 of assets held for sale Total 247 3,381 liabilities Stockholders' equity Preferred stock, Series 1 1BCommon stock,$.01 parvalue;authorized,100,000,000shares; issued and 51 51 outstanding,5,131,934shares atSeptember 30,2020 andDecember 31,2019 Additional 63,579 63,579 paid-incapital (59,274 ) (61,222 )Accumulated deficit Total 4,357 2,409 Shareholder Equity Total $ 4,604 $ 5,790 liabilities &equityNEW CONCEPT ENERGY, INC AND SUBSIDIARIESCONSOLIDATED STATEMENT OF OPERATIONS(unaudited)(amounts in thousands, except per share data) For the Three Months ended September For the Nine Months ended September 30, 30, 2020 2019 2020 2019

Revenue $ $ $ $ 76 Rent 25 25 76

Operating expensesOperating 15 17 46 53 expensesCorporate 65 92 296 314 general andadministrativeTotal 80 109 342 367 operating expenses Operating (55 ) (84 ) (266 ) (291 )loss Other income(expense)Interestincome from 54 60 172 180 relatedpartiesInterest 3 3 12 12 Income fromthird partiesInterest (3 ) (3 ) (9 ) (12 )expense Income other 83 46 83 199

Other income 137 106 258 379

Net income(loss) from 82 22 (8 ) 88 continuingoperations DiscontinuedOperationsGain (loss)from (38 ) (2,342 ) (182 ) (2,423 )discontinuedoperations Gain (loss) from disposal 2,138 - 2,138 - of Oil & GasOperations 2,100 ) 1,956 ) (2,342 (2,423

Net income (loss) 2,182 (2,320 ) 1,948 (2,335 )applicable tocommon shares Net income(loss) per $ $ ) $ $ )common 0.43 (0.45 0.38 (0.45share-basicand diluted Weightedaverage commonand equivalent 5,132 5,132 5,132 5,132 sharesoutstanding -basic View source version on businesswire.com: https://www.businesswire.com/news/home/20201116006053/en/

CONTACT: New Concept Energy Inc. Investor Relations Gene Bertcher, (800) 400-6407 info@newconceptenergy.com