8-K

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):      April 16, 2009 
 

NEW CONCEPT ENERGY, INC.

(Exact Name of Registrant as Specified in its Charter)

Nevada	000-08187	75-2399477
(State or other jurisdiction of Incorporation or organization)	(Commission      File No.)	(IRS Employer Identification Number)
1755 Wittington Place, Suite 340 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:
 

o     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 2 – Financial Information

Item 2.02. Results of Operations and Financial Condition
 
     On April 16, 2009, New Concept Energy, Inc. (“GBR” or the “Company”) announced its operational results for the year ended December 31, 2008. 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
Designation	Description of Exhibit
99.1*	Press Release dated April 16, 2009.
*Furnished herewith.

 

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: April 16, 2009

NEW CONCEPT ENERGY, INC

By: /s/ Gene S. Bertcher

Gene S. Bertcher, President and Chief

Financial Officer

EX-99.1

Exhibit 99.1

For Immediate Release	Contact:	Oscar Smith
		Gene Bertcher
		(972) 407-8400
NEW CONCEPT ENERGY
REPORTS 2008 RESULTS

Dallas, Texas (Business Wire) April 16, 2009: New Concept Energy, Inc. (AMEX: GBR), (“the Company” or “NCE”), a Dallas-based oil and gas company, today reported net income for the twelve months ended December 31, 2008 of $15.5 million or $8.92 per share, compared to net income of $62,000 or $0.06 per share for the twelve months ended December 31, 2007. Net loss for the three months ended December 31, 2008 was $150,000 as compared to net income of $544,000 for the three months ended December 31, 2007.

In September 2008, the Company completed the acquisition of certain entities, mineral interests and related assets through its wholly owned subsidiaries Mountaineer State Energy, Inc. and Mountaineer State Operations, LLC. The Company now operates oil and gas wells and mineral leases in Athens and Meigs Counties in Ohio and in Calhoun, Jackson and Roane Counties in West Virginia. The assets acquired included 94 producing gas wells, 121 non-producing wells and related equipment and mineral leases. 

In addition to the wells and mineral leases, the acquisition included a complex covering approximately 41 acres of land with 8,000 square feet of office and storage buildings, an adjacent 12 acres site with a 24 stall horse barn, machinery and equipment in excess of the needs of the gas operation and approximately $1.5 million in cash. NCE is evaluating the excess equipment and currently plans on selling any excess land and equipment not needed for current or planned future operations.

Revenues and Operating Expenses: Revenues for 2008 totaled $3.6 million compared to $3.0 million in 2007. The primary reason for the increase is the acquisition of the oil and gas operations in West Virginia and Ohio in September, 2008, which provided $672,000 of net revenue. Revenue for the retirement facility totaled approximately $2.9 million in 2008 as compared to $3.0 million for 2007. 

Operating expenses totaled $3.7 million for 2008 compared to $3.0 million for 2007. In 2008, oil and gas operating costs totaled $496,000, and corporate general and administrative expenses increased approximately $200,000, primarily due to the administrative costs of the acquisition. 

Interest Income: Interest income increased approximately $670,000 from 2007 to 2008 due to the increase in the interest-bearing loans to affiliates during 2008.

Interest Expense: Interest expense for 2008 increased approximately $197,000 due primarily to the amount of time debt was owed. Interest on the note payable to affiliate in 2007 reflects less than two months of accrued interest, while 2008 interest is for more than four months. 

Gain on sale of assets: In 2008 the Company sold its investment in mineral rights in the Fayetteville Shale for a gain of approximately $16.4 million. In 2007, the Company sold a participation in the future cash flow of its retirement community in King City, Oregon and recorded a gain of $750,000.

Other Income: Other income increased from $143,000 in 2007 to $464,000 in 2008. The increase in 2008 is primarily due to cash received from receivables that were previously fully reserved.

CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts)

	Year Ended December 31,
		2008			2007
Revenue
Oil and gas operations, net of royalties	$	672		$	--
Real estate operations		2,888			2,984
		3,560			2,984
Operating expenses
Oil and gas operations		496			--
Real estate operations		1,243			1,315
Lease expense		962			845
Corporate general and administrative		1,001			796
		3,702			2,956
Operating earnings (loss)		(142	)		28
Other income (expense)
Interest income		785			112
Interest expense		(270	)		(73	)
Gain on sale of assets, net		16,432			750
Other income, net		464			142
		17,411			931
Earnings from continuing operations		17,269			959
Provision for income taxes		(1,774	)		(270	)
Net income from continuing operations		15,495			689
Discontinued operations (net of income taxes)
Loss from operations		--			(101	)
Gain (loss) from sale of assets		--			(526	)
Net loss from discontinued operations		--			(627	)
Net income applicable to common shares	$	15,495		$	62
Earnings (loss) per common share – basic
Continuing operations	$	8.92		$	.70
Discontinued operations		--			(0.64	)
Net earnings (loss) per share	$	8.92		$	0.06
Weighted average common and equivalent shares
outstanding – basic		1,737			987

CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)

	December 31,
Assets		2008		2007
Current assets
Cash and cash equivalents	$	190	$	172
Accounts receivable from oil and gas sales		353		--
Note and interest receivable – related party		10,632		2,200
Other current assets (including $189 from related parties in 2008)		527		8
Total current assets		11,702		2,380
Oil and natural gas properties (full cost accounting method):
Proved developed and undeveloped oil and gas properties		10,688		--
Unproved oil and natural gas properties		--		6,848
Property and equipment, net of depreciation
Land, buildings and equipment - oil and gas operations		1,291		--
Other		149		131
Total property and equipment		1,440		131
Deferred tax asset		--		250
Other assets		228		177
Total Assets	$	24,058	$	9,786

Certain statements in this media release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. The words “estimate”, “plan”, “intend”, “expect”, “anticipate”, “believe” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are found at various places throughout this release. New Concept Energy, Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Although we believe that our expectations are based upon reasonable assumptions, we can give no assurance that our goals will be achieved. Important factors that could cause our actual results to differ from estimates or projects contained in any forward-looking statements are described under Item 1A. Risk Factors in the Company’s Form 10-K for the fiscal year ended December 31, 2008.