DALLAS--(BUSINESS WIRE)--New Concept Energy, Inc. (NYSE American: GBR), (the “Company” or “NCE”) a Dallas-based oil and gas company, today reported Results of Operations for the fourth quarter ended December 31, 2018. During the three months ended December 31, 2018 the Company reported a net loss of $55,000 or ($0.005) per share, compared to a net loss of $2,851,000 or ($1.39) per share for the same period ended December 31, 2017
For the full year ended December 31, 2018 the Company reported a net loss of $484,000 or ($0.21) per share, compared to a net loss of $3,246,000 or ($1.59) per share for the same period ended December 31, 2017.
On December 4, 2018, the Company issued an additional 3,000,000 shares of Common Stock to a single investor for cash of $4,500,000 to increase stockholders’ equity by $4,440,000 after issuance costs. The issuance of 3,000,000 shares of Common Stock resulted in a change in control of the Company, as the investor now owns approximately 59.6% of the outstanding Common Stock. The issuance of the 3,000,000 shares of Common Stock increased the total number of shares issued and outstanding to 5,131,935 shares.
Revenues: Total revenues from the oil & gas operation was $682,000 in 2018 and $791,000 in 2017. The decrease was due to the rate the Company received for the sale of its natural gas during 2018.
Operating Expenses: Operating expenses for continuing oil & gas operations was $844,000 in 2018 and $1,027, 000 in 2017. This decrease was principally due to a reduction of depreciation and depletion expense of $73,000. The remaining decrease was the result of an overall reduction in operating expenses.
In 2017 pursuant to the requirements of the “full cost ceiling test” for oil & gas companies we recorded a non-cash charge to operations of $2.6 million to write down its investment in Ohio and West Virginia. This charge to earnings was caused by a revaluation of the Company’s non-producing oil and gas reserves.
Corporate Expenses were $353,000 in 2018 and $408,000 in 2017. The decrease was principally due to a reduction in payroll expenses.
Interest Expense: Interest Expense was $18,000 in 2018 as compared to $24,000 in 2017. The decrease was due to a reduction in the long-term debt.
About New Concept Energy, Inc.
New Concept Energy, Inc. is a Dallas-based oil and gas company which owns oil and gas wells and mineral leases in Ohio and in West Virginia. For more information, visit the Company’s website at www.newconceptenergy.com.
| NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES | ||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
| (amounts in thousands, except per share data) | ||||||||||||
| Year Ended December 31, | ||||||||||||
| 2018 | 2017 | 2016 | ||||||||||
| Revenue | ||||||||||||
| Oil and gas operations, net of royalties | $ | 682 | $ | 791 | $ | 764 | ||||||
| 682 | 791 | 764 | ||||||||||
| Operating expenses | ||||||||||||
| Oil & gas operations | 844 | 1,027 | 1,181 | |||||||||
| Corporate general and administrative | 353 | 408 | 352 | |||||||||
| Impairment of natural gas and oil properties | - | 2,626 | - | |||||||||
| 1,197 | 4,061 | 1,533 | ||||||||||
| Operating earnings (loss) | (515 | ) | (3,270 | ) | (769 | ) | ||||||
| Other income (expense) | ||||||||||||
| Interest income (including $17 for the year ended 2018 from related parties) | 37 | 25 | 23 | |||||||||
| Interest expense | (18 | ) | (24 | ) | (38 | ) | ||||||
| Gain on prepayment of debt | - | - | 888 | |||||||||
| Gain on sale of land | - | - | 50 | |||||||||
| Bad debt expense (recovery) - note receivable | - | - | - | |||||||||
| Other income (expense), net | 12 | 28 | (110 | ) | ||||||||
| 31 | 29 | 813 | ||||||||||
| Earnings (loss) from continuing operations | (484 | ) | (3,241 | ) | 44 | |||||||
| Earnings from discontinued operations | - | (5 | ) | 4 | ||||||||
| Net income (loss) applicable to common shares | $ | (484 | ) | $ | (3,246 | ) | $ | 48 | ||||
| Net income (loss) per common share-basic and diluted | $ | (0.21 | ) | $ | (1.59 | ) | $ | 0.02 | ||||
| Weighted average common and equivalent shares outstanding - basic | 2,358 | 1,947 | 1,947 | |||||||||
| NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES | ||||||
| CONSOLIDATED BALANCE SHEETS | ||||||
| (amounts in thousands) | ||||||
| December 31, | ||||||
| 2018 | 2017 | |||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 361 | $ | 419 | ||
| Accounts receivable from oil and gas sales | 72 | 67 | ||||
| Current portion note receivable (including $4,017 in 2018 from related parties) | 4,063 | 36 | ||||
| Total current assets | 4,496 | 522 | ||||
| Oil and natural gas properties (full cost accounting method) | ||||||
| Proved developed and undeveloped oil and gas properties, net of depletion | 2,517 | 2,721 | ||||
| Property and equipment, net of depreciation | ||||||
| Land, buildings and equipment - oil and gas operations | 618 | 661 | ||||
| Note Receivable | 251 | 301 | ||||
| Total assets | $ | 7,882 | $ | 4,205 | ||
| NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED BALANCE SHEETS - CONTINUED | ||||||||
| (amounts in thousands, except share amounts) | ||||||||
| December 31, | ||||||||
| 2018 | 2017 | |||||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable - trade (including $37 and $412 in 2018 and 2017 due to related parties) | $ | 59 | $ | 446 | ||||
| Accrued expenses | 32 | 29 | ||||||
| Current portion of long term debt | 59 | 81 | ||||||
| Total current liabilities | 150 | 556 | ||||||
| Long-term debt | ||||||||
| Notes payable less current portion | 201 | 243 | ||||||
| Asset retirement obligation | 2,770 | 2,770 | ||||||
| Total liabilities | 3,121 | 3,569 | ||||||
| Stockholders' equity | ||||||||
| Series B convertible preferred stock, $10 par value, liquidation value | ||||||||
| of $100 authorized 100 shares, issued and outstanding one share | 1 | 1 | ||||||
| Common stock, $.01 par value; authorized, 100,000,000 | ||||||||
| shares; issued and outstanding, 5,131,934 and 2,036,935 shares | ||||||||
| at December 31, 2018 and 2017 | 51 | 21 | ||||||
| Additional paid-in capital | 63,579 | 59,000 | ||||||
| Accumulated deficit | (58,870 | ) | (58,386 | ) | ||||
| 4,761 | 636 | |||||||
| Total liabilities & stockholders' equity | $ | 7,882 | $ | 4,205 | ||||
