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, 2017.
During the three months ended December 31, 2017 the Company
reported a net loss of $2,851,000 or ($1.39) per share, compared to
a net income of $641,000 or $0.32 per share for the same period
ended December 31, 2016.
For the full year ended December 31, 2017 the Company reported a
net loss of $3,246,000 or ($1.59) per share, compared to a net
income of $48,000 or $0.02 per share for the same period ended
December 31, 2016.
Included in the 2017 loss are non-cash expenses of $3,047,000
including an impairment expense of $2,626,000 to reduce the
carrying value of the Company’s oil and gas properties,
depreciation, depletion and amortization expense of $396,000 and a
$25,000 expense to write off assets from the operations at a
retirement center that was discontinued in 2017.
Revenues: Total revenues from the oil & gas operation was
$791,000 in 2017 and $764,000 in 2016. Net revenue for our oil and
gas operation increased by $27,000 in 2017 as compared to 2016.
Included in 2016 revenue is a onetime fee of $30,000. The increase
in revenue in 2017 was principally due to an increase in the
quantity of oil and gas produced.
Operating Expenses: Operating expenses for continuing oil &
gas operations was $1,027,000 in 2017 and $1,181,000 in 2016. This
decrease of $154,000 was principally due to a reduction of
depreciation and depletion expense of $174,000. The remaining
increase 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 $2,646,000 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 $408,000 in 2017 and $352,000 in 2016.
The increase is due to an overall increase in operating
expenses.
Interest Expense: Interest Expense was $24,000 in 2017 as
compared to $38,000 in 2016. The decrease was due to a reduction in
the long term debt.
Other Income & (Expense): Other income & (expense) was
$28,000 for 2017 as compared to ($110,000) in 2016. In 2017 the
most significant item was the receipt of $64,000 for a receivable
the Company had previously written off. The expenses in 2016 were
principally the write off assets pertaining to the termination of
the lease at the retirement center.
Discontinued Operations: The Company leased and operated Pacific
Pointe Retirement Inn (“Pacific Pointe”) a retirement community in
King City, Oregon. Our lease provided that should the property be
sold the lease maintained by the Company would be terminated. The
owners completed the sale of the building on March 30, 2017 and our
lease terminated on that date. These financial statements reflect
the operations of the retirement community as a discontinued
operation. Net income (loss) from discontinued operations was
($5,000) and $4,000 in 2017 and 2016, respectively.
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, 2017 2016
2015 Revenue Oil and gas operations, net of royalties
$ 791 $ 764 $ 820 791 764
820
Operating expenses Oil &
gas operations 1,027 1,181 1,800 Corporate general and
administrative 408 352 605 Impairment of natural gas and oil
properties 2,626 - 2,717
4,061 1,533 5,122
Operating earnings (loss) (3,270 ) (769 ) (4,302 )
Other
income (expense) Interest income 25 23 12 Interest expense (24
) (38 ) (62 ) Gain on prepayment of debt - 888 - Gain on sale of
land - 50 - Bad debt expense (recovery) - note receivable - - 1,430
Other income (expense), net 28 (110 )
(32 ) 29 813 1,348 Earnings (loss) from continuing
operations (3,241 ) 44 (2,954 ) Earnings from discontinued
operations (5 ) 4 332
Net income (loss) applicable to common shares $
(3,246 ) $ 48 $ (2,622 ) Net income (loss) per common
share-basic and diluted $ (1.59 ) $ 0.02 $ (1.35 )
Weighted average common and equivalent shares outstanding - basic
2,037 1,947 1,947
NEW
CONCEPT ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE
SHEETS (amounts in thousands) December 31,
2017 2016 Assets Current assets
Cash and cash equivalents $ 419 $ 113 Accounts receivable from oil
and gas sales 67 119 Current portion note receivable 36
206
Total current assets 522 438
Oil and natural gas properties (full cost accounting
method) Proved developed and undeveloped oil and gas
properties, net of depletion 2,721 5,608
Property and
equipment, net of depreciation Land, buildings and equipment -
oil and gas operations 661 706 Other - 25
Total
property and equipment 661 731
Note Receivable
301 401
Total assets $ 4,205 $ 7,178
NEW CONCEPT ENERGY,
INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS -
CONTINUED (amounts in thousands, except share amounts)
December 31, 2017 2016 Liabilities
and stockholders' equity Current liabilities
Accounts payable - trade (including $412 and $160 in 2017 and 2016
due to related parties) $ 446 $ 238 Accrued expenses 29 59 Current
portion of long term debt 81 96
Total current liabilities 556 393
Long-term
debt Notes payable less current portion 243 296 Asset
retirement obligation 2,770 2,770
Total liabilities 3,569 3,459
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, 2,036,935 and 1,946,935
shares at December 31, 2017 and 2016 21 20 Additional paid-in
capital 59,000 58,838 Accumulated deficit (58,386 )
(55,140 ) 636 3,719
Total
liabilities & stockholders' equity $ 4,205 $ 7,178
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version on businesswire.com: https://www.businesswire.com/news/home/20180418006542/en/
New Concept Energy, Inc.Gene Bertcher,
800-400-6407info@newconceptenergy.com
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