UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 Pursuant to Section 13 or 15(d) of the Securities Exchange Act

 

 

Date of Report (Date of earliest event reported): March 26, 2020                                                                  

 

 

NEW CONCEPT ENERGY, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

Nevada

 

000-08187

 

75-2399477

(State or other

jurisdiction of incorporation)

(Commission

File No.)

(I.R.S. Employer

Identification No.)

     
   

1603 LBJ Freeway, Suite 300

Dallas, Texas

75234
(Address of principal executive offices) (Zip Code)
       

 

Registrant’s telephone number, including area code 972-407-8400                                                                   

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:

 

[  ]Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

  

Securities registered pursuant to Section 12(b) of the Act:

 

 

 

Title of Each Class

 

 

Trading Symbol

 

Name of Each Exchange

on which Registered

 

Common Stock, par value $0.01

 

GBR

 

NYSE American

 

Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company [  ]

 

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

[  ]

 

1 
 

Section 2 – Financial Information

 

Item 2.02. Results of Operations and Financial Condition

 

On March 26, 2020, New Concept Energy, Inc. (“

GBR” or the “Company”) announced its operational results for the year ended December 31, 2019. A copy of the announcement is attached as Exhibit “99.1.”

 

The information furnished pursuant to Item 2.02 in this Form 8-K, including Exhibit “99.1” attached hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section, unless we specifically incorporate it by reference in a document filed under the Securities Act of 1933 or the Securities Exchange Act of 1934. We undertake no duty or obligation to publicly update or revise the information furnished pursuant to Item 2.02 of this Current Report on Form 8-K.

 

Section 9 – Financial Statements and Exhibits

 

Item 9.01. Financial Statements and Exhibits

 

(d)       Exhibits.

 

The following exhibit is furnished with this Report:

 

                    Exhibit No. Description

 

99.1*       Press release dated March 26, 2020 

 

_________________________

* Furnished herewith

2 
 

 

SIGNATURES

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned, hereunto duly authorized.

 

Dated: March 27, 2020

 

 

 

      NEW CONCEPT ENERGY, INC.
       
       
By: /s/ Gene S. Bertcher
    Gene S. Bertcher
    President and
    Chief Financial Officer

 

3 
 

 

Exhibit "99.1"

 

NEWS RELEASE

 

FOR IMMEDIATE RELEASE

Contact:

 

New Concept Energy Inc.

Gene Bertcher (800) 400-6407

info@newconceptenergy.com

 

New Concept Energy, Inc. Reports Fourth Quarter and Full Year 2019 Results

Dallas – March 26, 2020 - 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 and the full year ended December 31, 2019.

 

During the three months ended December 31, 2019 the Company reported a net loss of $17,000 compared to a net loss of $55,000 for the same period ended December 31, 2018.

 

For the full year ended December 31, 2019 the Company reported a net loss of $2.3 million or ($0.46) per share, compared to a net loss of $484,000 or ($0.21) per share for the same period ended December 31, 2018.

 

Revenues: Total revenues from the oil & gas operation was $590,000 in 2019 and $682,000 in 2018. The decrease was due to the rate the Company received for the sale of its natural gas during 2019.

 

Operating Expenses: Operating expenses for continuing oil & gas operations was $686,000 in 2019 and $844,000 in 2018. This decrease was principally due to a reduction of depreciation and depletion expense of $166,000.

In 2019 pursuant to the requirements of the “full cost ceiling test” for oil & gas companies we recorded a non-cash charge to operations of $2.3 million to write down its investment in West Virginia. In September 2019 the Company unsuccessfully drilled a well which resulted in dry hole. As the well did not prove up the estimated probable and possible reserves, the Company had to deem the applicable reserve estimates as impaired. In the third quarter the company booked an impairment expense of $2,285,000 which represents a reduction of both the estimated probable and possible reserves as well as the cost of drilling the failed well. This charge to earnings was caused by a revaluation of the Company's non-producing oil and gas reserves.

Corporate Expenses were $412,000 in 2019 and $353,000 in 2018. The increase was principally due to an increase in consulting expenses.

Interest Income: Interest Income was $237,000 in 2019 as compared to $37,000 in 2018. The increase was due to the interest earned from investing the proceeds from the issuance and sale of common stock in December 2018.

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.

 

Contact:

New Concept Energy, Inc.

Gene Bertcher (800) 400-6407

info@newconceptenergy.com

 

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
 
   December 31,
   2019  2018
Assets      
       
Current assets          
Cash and cash equivalents  $22   $361 
Accounts receivable from oil and gas sales   73    72 
Current portion note receivable (including $4,005 and $4,017 in 2019 and 2018 from related parties)   4,046    4,063 
Total current assets   4,141    4,496 
           
           
Oil and natural gas properties (full cost accounting method)          
Proved developed and undeveloped oil and gas properties, net of depletion   767    2,517 
           
Property and equipment, net of depreciation          
Land, buildings and equipment - oil and gas operations   668    618 
           
Note Receivable   214    251 
           
Total assets  $5,790   $7,882 
           
           
           

 

 

 

 

 

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - CONTINUED
(amounts in thousands, except share amounts)
       
   December 31,
   2019  2018
Liabilities and stockholders' equity          
           
Current liabilities          
    Accounts payable - trade (including $180 and $37 in 2019 and 2018 due to related parties)  $355   $59 
    Accrued expenses   35    32 
    Current portion of long term debt   44    59 
Total current liabilities   434    150 
           
Long-term debt          
    Notes payable less current portion   177    201 
    Asset retirement obligation   2,770    2,770 
Total liabilities   3,381    3,121 
           
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 shares          
at December 31, 2019 and 2018   51    51 
    Additional paid-in capital   63,579    63,579 
    Accumulated deficit   (61,222)   (58,870)
    2,409    4,761 
           
Total liabilities & stockholders' equity  $5,790   $7,882 
           
           

 

 

 

 
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands, except per share data)
          
   Year Ended December 31,
   2019  2018  2017
Revenue         
Oil and gas operations, net of royalties  $590   $682   $791 
    590    682    791 
                
Operating expenses               
Oil & gas operations   686    844    1,027 
Corporate general and administrative   412    353    408 
Impairment of natural gas and oil properties   2,285    —      2,626 
    3,383    1,197    4,061 
Operating earnings (loss)   (2,793)   (515)   (3,270)
                
Other income (expense)               
Interest income (including $240 and $17 for the year ended 2019 and 2018 from related parties)   257    37    25 
Interest expense   (15)   (18)   (24)
Other income (expense), net   199    12    28 
    441    31    29 
                
Earnings (loss) from continuing operations   (2,352)   (484)   (3,241)
                
Earnings from discontinued operations   —      —      (5)
                
Net income (loss) applicable to common shares  $(2,352)  $(484)  $(3,246)
                
Net income (loss) per common share-basic and diluted  $(0.46)  $(0.21)  $(1.59)
                
Weighted average common and equivalent shares outstanding - basic   5,132    2,358    1,947 
                
                

 

 


The following information was filed by New Concept Energy, Inc. (GBR) on Friday, March 27, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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