Business Wire | Aug 13, 2020 04:30PM EDT

New Concept Energy, Inc. Reports Second Quarter 2020 Results

Aug. 13, 2020

DALLAS--(BUSINESS WIRE)--Aug. 13, 2020--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, 2020 of $137,000 or ($0.03) per diluted share, compared to net loss from continuing operations of $141,000 or ($0.03) per share for the three months ended June 30, 2019.

The Company reported a net loss from continuing operations for the six months ended June 30, 2020 of $234,000 or ($0.05) per share, compared to net loss from continuing operations of $15,000 for the six months ended June 30, 2019.

For the three months ended June 30, 2019, the Company recorded oil and gas revenues of $93,000 as compared to $164,000 for the comparable period of 2019. The decrease was principally due to a lower price received for the sale of natural gas.

For the three months ended June 30, 2020, the Company recorded oil and gas operating expenses of $163,000 as compared to $231,000 for the comparable period of 2019. The decrease was principally due to reductions in payroll, consulting fees and overall expenses.

For the three months ended June 30, 2019, corporate general & administrative expenses were $127, 000 as compared to $134,000 for the comparable periods in 2019.

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(unaudited)

(amounts in thousands)

June December 30, 31, 2020 2019

Assets Current assetsCash and cash equivalents $ 39 $ 22

Accounts receivable from oil and gas sales 69 73

Current portion note receivable (including $3,620 and $4,136 3,660 4,046in 2020 and 2019 from related partiesOther current assets 25 -

Total current assets 3,793 4,141

Oil and natural gas properties (full cost accounting method)Proved developed and undeveloped oil and gas properties, net 706 767of depletion Property and equipment, net of depreciationLand, buildings and equipment - oil and gas operations 662 668

Note receivable 192 214

Total assets $ 5,353 $ 5,790

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS - CONTINUED

(unaudited)

(dollars in thousands, except par value amount)

June 30, December 2020 31, 2019

Liabilities and stockholders' equity Current liabilities Accounts payable - (including $20 and $180 due to $ 195 $ 355related parties in 2020 and 2019)Accrued expenses 37 35

Current portion of long term debt 40 44

Total current liabilities 272 434

Long-term debt Notes payable less current portion 161 177

Asset retirement obligation 2,745 2,770

Total liabilities 3,178 3,381

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 sharesat June 30, 2020 and December 31, 2019 51 51

Additional paid-in capital 63,579 63,579

Accumulated deficit (61,456) (61,222)

Total shareholder equity 2,175 2,409

Total liabilities & equity $ 5,353 $ 5,790

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 Months ended June 30, ended June 30,

2020 2019 2020 2019

Revenue Oil and gas operations, net of $ 93 $ 164 $ 218 $ 344royalties Operating expenses Oil and gas operations 163 231 341 410

Corporate general and administrative 127 134 231 222

Total Operating Expenses 290 365 572 632

Operating earnings (loss) (197) (201) (354) (288)

Other income (expense) Interest income 63 64 127 129

Interest expense (3) (4) (7) (9)

Other income (expense), net - - - 153

Expense 60 60 120 273

Net income (loss) applicable to $ (137) $ (141) $ (234) $ (15)common shares Net income (loss) per common $ (0.03) $ (0.03) $ (0.05) $ -share-basic and diluted Weighted average common and 5,132 5,132 5,132 5,132equivalent shares outstanding - basic

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