GBR shares soared on Friday, with gains of over 200% at the stock’s intra-day high. There was no specific news to explain the sudden move for the Dallas-based oil and gas company.
Back in April, New Concept Energy reported a net loss for the three months ended March 31, 2016 of $296,000 or ($0.15) per share, compared to net income of $314,000 or $0.16 per share for the three months ended March 31, 2015.
In March 2015 the Company recorded a $738,000 recovery of a note receivable which had been fully reserved in a prior year.
For the three months ended March 31, 2016, GBR recorded oil and gas revenues of $219,000 as compared to $172,000 for the comparable period of 2015. The increase in oil and gas revenue for the three months ended March 31, 2016 was $47,000. The increase is due to the production of more gas in 2016 than 2015. During 2016 the Company has reduced the production of oil from wells that were unprofitable due to the market price of oil.
The Company recorded revenues of $677,000 for the three months ended March 31, 2016 from its retirement property compared to $717,000 for the comparable period in 2014. The decrease is due to reduced occupancy at the facility.
For the three months ended March 31, 2016, the Company recorded oil and gas operating expenses of $396,000 as compared to $470,000 for the comparable period of 2015. The decrease was due to a specific effort by management to reduce operation costs. The decrease represents a $41,000 reduction in payroll costs and a reduction in general operating expenses of $38,000.
GBR was one of the biggest midday gainers on Friday and hit a new 52-week high.
Disclaimer: We have no position in New Concept Energy (NYSE: GBR) and have not been compensated for this article.