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New Concept Energy, Inc. Reports Second Quarter 2017 Results

New Concept Energy, Inc. (NYSE American: GBR), (the “Company” or “NCE”) a Dallas-based oil and gas company, today reported a net loss for the three months ended June 30, 2017 of $135,000 or ($0.07) per share, compared to a net loss of $133,000 or ($0.07) per share for the three months ended June 30, 2016.

The net loss from continuing operations was $124,000 for the three months ended June 30, 2017 compared to a net loss of $171,000 for the similar period in the prior year.

At March 30, 2017 the Company’s operating lease expired at the retirement center it operated in Oregon. The operations of the retirement center are reflected as a discontinued operations.

For the three months ended June 30, 2017, the Company recorded oil and gas revenues, net of royalty expenses of $243,000 as compared to $170,000 for the comparable period of 2016. The increase in oil and gas revenue was principally due to an increase in production in 2017 as compared to 2016.

For the three months ended June 30, 2017, the Company recorded oil and gas operating expenses of $256,000 as compared to $233,000 for the comparable period of 2016. The increase was due to general operating expenses.

For the three months ended June 30, 2017, corporate general & administrative expenses were $122,000 as compared to $101,000 for the comparable period in 2016. The increase was due to overall operating expenses.

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited)
(amounts in thousands)

June 30,
2017

December 31,
2016

Assets
Current assets
Cash and cash equivalents $ 433 $ 113
Accounts receivable from oil and gas sales 143 119
Other current assets 87 206
Total current assets 663 438
Oil and natural gas properties (full cost accounting method)
Proved developed and undeveloped oil and gas properties, net of depletion 5,489 5,608
Property and equipment, net of depreciation
Land, buildings and equipment - oil and gas operations 689 706
Other - 25
Total property and equipment 689 731
Other assets (including $124 due from related parties in 2015) 298 401
Total assets $ 7,139 $ 7,178
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - CONTINUED
(unaudited)
(amounts in thousands, except share amounts)

June 30,
2017

December 31,
2016

Liabilities and stockholders' equity
Current liabilities

Accounts payable (includes $540 and $160 due to related parties in 2017 & 2016)

$ 555 $ 238
Accrued expenses 26 59
Current portion of long term debt 87 96
Total current liabilities 668 393
Long-term debt
Notes payable less current portion 276 296
Asset retirement obligation 2,770 2,770
Total liabilities 3,714 3,459
Stockholders' equity
Preferred stock, Series B 1 1

Common stock, $.01 par value; authorized, 100,000,000 shares; issued and outstanding, 1,946,935 shares at June 30, 2017 and December 31, 2016

20 20
Additional paid-in capital 58,838 58,838
Accumulated deficit (55,434)(55,140)
3,4253,719
Total liabilities & equity $ 7,139 $ 7,178
NEW CONCEPT ENERGY, INC AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited)
(amounts in thousands, except per share data)

For the Three Months
ended June 30,

For the Six Months
ended June 30,

2017201620172016
Revenue
Oil and gas operations, net of royalties $ 243 $ 170 $ 438 $ 389
Total Revenue 243 170 438 389
Operating expenses
Oil and gas operations 256 233 512 629
Corporate general and administrative 122 101 222 267
Total Operating Expenses 378 334 734 896
Operating earnings (loss) (135 ) (164 ) (296 ) (507 )
Other income (expense)
Interest income 11 5 15 11
Interest expense (6 ) (7 ) (13 ) (18 )
Other income (expense) 6 (5 ) (2 ) (10 )
11 (7 ) 0 (17 )
Loss from continuing operations (124 ) (171 ) (296 ) (524 )

Earnings (loss) from discontinued operations

(11 ) 38 2 95
Net income (loss) applicable to common shares $ (135 ) $ (133 ) $ (294 ) $ (429 )
Net income (loss) per common share-basic and diluted $ (0.07 ) $ (0.07 ) $ (0.15 ) $ (0.22 )
Weighted average common and equivalent shares outstanding - basic 1,947 1,947 1,947 1,947

Contacts:

New Concept Energy, Inc.
Gene Bertcher, 800-400-6407
info@newconceptenergy.com

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