November 29, 2020

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New Concept Energy, Inc. Reports Third Quarter 2020 Results

DALLAS--(BUSINESS WIRE)--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 30,2020 December 31,2019 (unaudited) (audited) Assets Current assets Cash and cash equivalents $ 42 $ 22 Current portion notes receivable (including $3,578 and $4,005 due to related parties in 2020 and 2019) 3,618 4,046 Other current assets 104 - Total current assets 3,764 4,068 Property and equipment, 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 SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - CONTINUED (unaudited) (dollars in thousands, except par value amount) September 30,2020 December 31,2019 Liabilities and stockholders' equity Current liabilities Accounts payable (includes $32 and $180 due to related parties in 2020 and 2019) $ 39 $ 226 Accrued expenses 18 20 Current portion of long term debt 40 44 Total current liabilities 97 290 Long-term debt Notes payable less current portion 150 177 Liabilities of assets held for sale - 2,914 Total liabilities 247 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 shares at September 30, 2020 and December 31, 2019 51 51 Additional paid-in capital 63,579 63,579 Accumulated deficit (59,274 ) (61,222 ) Total Shareholder Equity 4,357 2,409 Total liabilities & equity $ 4,604 $ 5,790 NEW CONCEPT ENERGY, INC AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS (unaudited) (amounts in thousands, except per share data) For the Three Months ended September 30, For the Nine Months ended September 30, 2020 2019 2020 2019 Revenue Rent $ 25 $ 25 $ 76 $ 76 Operating expenses Operating expenses 15 17 46 53 Corporate general and administrative 65 92 296 314 Total operating expenses 80 109 342 367 Operating loss (55 ) (84 ) (266 ) (291 ) Other income (expense) Interest income from related parties 54 60 172 180 Interest Income from third parties 3 3 12 12 Interest expense (3 ) (3 ) (9 ) (12 ) Income other 83 46 83 199 Other income 137 106 258 379 Net income (loss) from continuing operations 82 22 (8 ) 88 Discontinued Operations Gain (loss) from discontinued operations (38 ) (2,342 ) (182 ) (2,423 ) Gain (loss) from disposal of Oil & Gas Operations 2,138 - 2,138 - 2,100 (2,342 ) 1,956 (2,423 ) Net income (loss) applicable to common shares 2,182 (2,320 ) 1,948 (2,335 ) Net income (loss) per common share-basic and diluted $ 0.43 $ (0.45 ) $ 0.38 $ (0.45 ) Weighted average common and equivalent shares outstanding - basic 5,132 5,132 5,132 5,132 Contacts New Concept Energy Inc. Investor Relations Gene Bertcher, (800) 400-6407 [email protected]

DALLAS–(BUSINESS WIRE)–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,
2020
December 31,
2019
(unaudited) (audited)
Assets
Current assets
Cash and cash equivalents

$

42

$

22

Current portion notes receivable (including $3,578 and $4,005 due to related parties in 2020 and 2019)

3,618

4,046

Other current assets

104

Total current assets

3,764

4,068

Property and equipment, 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 SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS – CONTINUED
(unaudited)
(dollars in thousands, except par value amount)
September 30,
2020
December 31,
2019
Liabilities and stockholders' equity
Current liabilities
Accounts payable (includes $32 and $180 due to related parties in 2020 and 2019)

$

39

$

226

Accrued expenses

18

20

Current portion of long term debt

40

44

Total current liabilities

97

290

Long-term debt
Notes payable less current portion

150

177

Liabilities of assets held for sale

2,914

Total liabilities

247

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 shares at September 30, 2020 and December 31, 2019

51

51

Additional paid-in capital

63,579

63,579

Accumulated deficit

(59,274

)

(61,222

)

Total Shareholder Equity

4,357

2,409

Total liabilities & equity

$

4,604

$

5,790

NEW CONCEPT ENERGY, INC AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited)
(amounts in thousands, except per share data)
For the Three Months ended September 30, For the Nine Months ended September 30,

2020

2019

2020

2019

Revenue
Rent

$

25

$

25

$

76

$

76

Operating expenses
Operating expenses

15

17

46

53

Corporate general and administrative

65

92

296

314

Total operating expenses

80

109

342

367

Operating loss

(55

)

(84

)

(266

)

(291

)

Other income (expense)
Interest income from related parties

54

60

172

180

Interest Income from third parties

3

3

12

12

Interest expense

(3

)

(3

)

(9

)

(12

)

Income other

83

46

83

199

Other income

137

106

258

379

Net income (loss) from continuing operations

82

22

(8

)

88

Discontinued Operations
Gain (loss) from discontinued operations

(38

)

(2,342

)

(182

)

(2,423

)

Gain (loss) from disposal of Oil & Gas Operations

2,138

2,138

2,100

(2,342

)

1,956

(2,423

)

Net income (loss) applicable to common shares

2,182

(2,320

)

1,948

(2,335

)

Net income (loss) per common share-basic and diluted

$

0.43

$

(0.45

)

$

0.38

$

(0.45

)

Weighted average common and equivalent shares outstanding – basic

5,132

5,132

5,132

5,132

Contacts

New Concept Energy Inc.

Investor Relations

Gene Bertcher, (800) 400-6407

[email protected]

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