-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
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MIC-Info: RSA-MD5,RSA,
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 2gs0bpM94uG1tJX7u9mF1w==

<SEC-DOCUMENT>0001010549-09-000775.txt : 20091113
<SEC-HEADER>0001010549-09-000775.hdr.sgml : 20091113
<ACCEPTANCE-DATETIME>20091113124103
ACCESSION NUMBER:		0001010549-09-000775
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20090930
FILED AS OF DATE:		20091113
DATE AS OF CHANGE:		20091113

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			New Concept Energy, Inc.
		CENTRAL INDEX KEY:			0000105744
		STANDARD INDUSTRIAL CLASSIFICATION:	CRUDE PETROLEUM & NATURAL GAS [1311]
		IRS NUMBER:				752399477
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-08187
		FILM NUMBER:		091180266

	BUSINESS ADDRESS:	
		STREET 1:		1755 WITTINGTON PLACE
		STREET 2:		SUITE 340
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75234
		BUSINESS PHONE:		9724078400

	MAIL ADDRESS:	
		STREET 1:		1755 WITTINGTON PLACE
		STREET 2:		SUITE 340
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75234

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CabelTel International Corp
		DATE OF NAME CHANGE:	20050211

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GREENBRIAR CORP
		DATE OF NAME CHANGE:	19960514

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MEDICAL RESOURCE COMPANIES OF AMERICA
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>nce10q093009.htm
<TEXT>
<html>
    <head>
        <title></title>
    </head>

    <body style="FONT-SIZE: 12pt; FONT-FAMILY: 'TIMES NEW ROMAN'">
        <p style="FONT-SIZE: 10pt; BORDER-TOP-STYLE: double; BORDER-TOP-COLOR: #000000; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left; EEPStyleName: Border Page Scotch Top" align="center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in" align="center"><b><font style="FONT-SIZE: 14pt">UNITED</font></b> <b><font style="FONT-SIZE: 14pt">STATES</font></b></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in" align="center"><b><font style="FONT-SIZE: 14pt">SECURITIES</font></b> <b><font style="FONT-SIZE: 14pt">AND</font></b> <b><font style="FONT-SIZE: 14pt">EXCHANGE</font></b> <b><font style="FONT-SIZE: 14pt">COMMISSION</font></b></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in" align="center"><b><font style="FONT-SIZE: 11pt">WASHINGTON,</font></b> <b><font style="FONT-SIZE: 11pt">D.C.</font></b> <b><font style="FONT-SIZE: 11pt">20549</font></b></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in" align="center"><b><font style="FONT-SIZE: 14pt">FORM</font></b> <b><font style="FONT-SIZE: 14pt">10-Q</font></b></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in" align="center"><font face="Wingdings"><strong>x</strong></font>&nbsp;<b>QUARTERLY</b> <b>REPORT</b> <b>PURSUANT</b> <b>TO</b> <b>SECTION</b> <b>13</b> <b>OR</b> <b>15(d)</b> <b>OF</b> <b>THE</b></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in" align="center"><b>SECURITIES</b> <b>EXCHANGE</b> <b>ACT</b> <b>OF</b> <b>1934</b><br>
        &nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in" align="center"><b>FOR</b> <b>THE</b> <b>QUARTER</b> <b>ENDED</b> <b>SEPTEMBER</b> <b>30,</b> <b>2009</b></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in" align="center"><b>or</b></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in" align="center"><b><font face="Wingdings">o</font> TRANSITION</b> <b>REPORT</b> <b>PURSUANT</b> <b>TO</b> <b>SECTION</b> <b>13</b> <b>OR</b> <b>15(d)</b> <b>OF</b> <b>THE</b></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in" align="center"><b>SECURITIES</b> <b>EXCHANGE</b> <b>ACT</b> <b>OF</b> <b>1934</b></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in" align="center"><b>FOR</b> <b>THE</b> <b>TRANSITION</b> <b>PERIOD</b> <b>FROM</b> <b>TO</b></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in" align="center"><font size="2"><b>Commission</b> <b><font style="FONT-SIZE: 10pt">File</font></b> <b><font style="FONT-SIZE: 10pt">Number</font></b> <b><font style="FONT-SIZE: 10pt">000-</font></b><b><font style="FONT-SIZE: 10pt">0</font></b><b><font style="FONT-SIZE: 10pt">8187</font></b></font></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in" align="center"><b><font style="FONT-SIZE: 18pt">NEW</font></b> <b><font style="FONT-SIZE: 18pt">CONCEPT</font></b> <b><font style="FONT-SIZE: 18pt">ENERGY,</font></b> <b><font style="FONT-SIZE: 18pt">INC</font></b></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in" align="center"><b><font style="FONT-SIZE: 7.5pt">(Exact</font></b> <b><font style="FONT-SIZE: 7.5pt">Name</font></b> <b><font style="FONT-SIZE: 7.5pt">of</font></b> <b><font style="FONT-SIZE: 7.5pt">Registrant</font></b> <b><font style="FONT-SIZE: 7.5pt">as</font></b> <b><font style="FONT-SIZE: 7.5pt">Specified</font></b> <b><font style="FONT-SIZE: 7.5pt">in</font></b>
        <b><font style="FONT-SIZE: 7.5pt">Its</font></b> <b><font style="FONT-SIZE: 7.5pt">Charter)</font></b></p>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
            <tr>
                <td style="BORDER-BOTTOM: black 0.5pt solid" valign="top" width="41%" colspan="2">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">Nevada</font></b></p>
                </td>

                <td valign="top" width="13%">&nbsp;</td>

                <td style="BORDER-BOTTOM: black 0.5pt solid" valign="top" width="44%" colspan="2">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">75-2399477</font></b></p>
                </td>
            </tr>

            <tr height="20">
                <td style="BORDER-TOP: medium none" valign="top" width="41%" colspan="2">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 7.5pt">(State</font></b> <b><font style="FONT-SIZE: 7.5pt">or</font></b> <b><font style="FONT-SIZE: 7.5pt">Other</font></b> <b><font style="FONT-SIZE: 7.5pt">Jurisdiction</font></b> <b><font style="FONT-SIZE: 7.5pt">of </font></b></p>

                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 7.5pt">Incorporation</font></b> <b><font style="FONT-SIZE: 7.5pt">or</font></b> <b><font style="FONT-SIZE: 7.5pt">Organization)</font></b></p>
                </td>

                <td valign="top" width="13%">&nbsp;</td>

                <td style="BORDER-TOP: medium none" valign="top" width="44%" colspan="2">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 7.5pt">(I.R.S.</font></b> <b><font style="FONT-SIZE: 7.5pt">Employer<br>
                    Identification</font></b> <b><font style="FONT-SIZE: 7.5pt">No.)</font></b></p>
                </td>
            </tr>

            <tr>
                <td valign="top" width="100%" colspan="5">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">1755</font></b> <b><font style="FONT-SIZE: 10pt">Wittington</font></b> <b><font style="FONT-SIZE: 10pt">Place,</font></b> <b><font style="FONT-SIZE: 10pt">Suite</font></b> <b><font style="FONT-SIZE: 10pt">340<br>
                    Dallas,</font></b> <b><font style="FONT-SIZE: 10pt">Texas</font></b></p>
                </td>
            </tr>

            <tr>
                <td valign="top" width="29%">&nbsp;</td>

                <td style="BORDER-TOP: black 0.5pt solid" valign="top" width="39%" colspan="3">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 8pt">(Address</font></b> <b><font style="FONT-SIZE: 8pt">of</font></b> <b><font style="FONT-SIZE: 8pt">principal</font></b> <b><font style="FONT-SIZE: 8pt">executive</font></b> <b><font style="FONT-SIZE: 8pt">offices)</font></b></p>
                </td>

                <td valign="top" width="30%">&nbsp;</td>
            </tr>

            <tr>
                <td valign="top" width="29%">&nbsp;</td>

                <td valign="top" width="39%" colspan="3">&nbsp;</td>

                <td valign="top" width="30%">&nbsp;</td>
            </tr>

            <tr>
                <td valign="top" width="29%">&nbsp;</td>

                <td style="BORDER-BOTTOM: black 0.5pt solid" valign="top" width="39%" colspan="3">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">75234</font></b></p>
                </td>

                <td valign="top" width="30%">&nbsp;</td>
            </tr>

            <tr>
                <td valign="top" width="29%">&nbsp;</td>

                <td style="BORDER-TOP: medium none" valign="top" width="39%" colspan="3">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 8pt">(Zip</font></b> <b><font style="FONT-SIZE: 8pt">Code)</font></b></p>
                </td>

                <td valign="top" width="30%">&nbsp;</td>
            </tr>

            <tr>
                <td valign="top" width="29%">&nbsp;</td>

                <td valign="top" width="39%" colspan="3">&nbsp;</td>

                <td valign="top" width="30%">&nbsp;</td>
            </tr>

            <tr>
                <td valign="top" width="29%">&nbsp;</td>

                <td valign="top" width="39%" colspan="3">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">(972)</font></b> <b><font style="FONT-SIZE: 10pt">407-8400</font></b></p>
                </td>

                <td valign="top" width="30%">&nbsp;</td>
            </tr>

            <tr>
                <td valign="top" width="29%">&nbsp;</td>

                <td style="BORDER-BOTTOM: black 0.5pt solid" valign="top" width="39%" colspan="3">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 8pt">(Registrant&rsquo;s</font></b> <b><font style="FONT-SIZE: 8pt">telephone</font></b> <b><font style="FONT-SIZE: 8pt">number,</font></b> <b><font style="FONT-SIZE: 8pt">including</font></b> <b><font style="FONT-SIZE: 8pt">area</font></b> <b><font style="FONT-SIZE: 8pt">code)</font></b></p>
                </td>

                <td valign="top" width="30%">&nbsp;</td>
            </tr>

            <tr>
                <td valign="top" width="29%">&nbsp;</td>

                <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="39%" colspan="3">&nbsp;</td>

                <td valign="top" width="30%">&nbsp;</td>
            </tr>

            <tr>
                <td valign="top" width="29%">&nbsp;</td>

                <td style="BORDER-TOP: medium none" valign="top" width="39%" colspan="3">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 8pt">(Former</font></b> <b><font style="FONT-SIZE: 8pt">name,</font></b> <b><font style="FONT-SIZE: 8pt">former</font></b> <b><font style="FONT-SIZE: 8pt">address</font></b> <b><font style="FONT-SIZE: 8pt">and</font></b> <b><font style="FONT-SIZE: 8pt">former</font></b> <b><font style="FONT-SIZE: 8pt">fiscal</font></b>
                    <b><font style="FONT-SIZE: 8pt">year,</font></b> <b><font style="FONT-SIZE: 8pt">if</font></b> <b><font style="FONT-SIZE: 8pt">changed</font></b> <b><font style="FONT-SIZE: 8pt">since</font></b> <b><font style="FONT-SIZE: 8pt">last</font></b> <b><font style="FONT-SIZE: 8pt">report)</font></b></p>
                </td>

                <td valign="top" width="30%">&nbsp;</td>
            </tr>
        </table>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90
        days.</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Yes:&nbsp; <font face="Wingdings 2">R </font>No:&nbsp;<font face="Wingdings 2">&pound;</font></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (&sect;232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required
        to submit and post such files).</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Yes:&nbsp; <font face="Wingdings 2">&pound;</font>&nbsp;No&nbsp; <font face="Wingdings 2">&pound;</font></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or smaller reporting company. See definitions of &ldquo;large accelerated filer,&rdquo; &ldquo;accelerated filer&rdquo; and &ldquo;smaller reporting company&rdquo; in Rule 12b-2 of the Exchange Act. (Check one):</p>

        <table style="MARGIN-LEFT: 1.5in" cellspacing="0" cellpadding="0" width="666" border="0">
            <tr>
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="top" width="163">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Large</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">accelerated</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">filer</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'WINGDINGS 2'">&pound;</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="top" width="198">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Accelerated</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">filer</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'WINGDINGS 2'">&pound;</font></p>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr style="HEIGHT: 15.8pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="top" width="163">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Non-accelerated</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">filer</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'WINGDINGS 2'">&pound;</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="top" width="198">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Smaller</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">reporting</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">company</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'WINGDINGS 2'">R </font></p>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td valign="top" width="582" colspan="3">&nbsp;</td>

                <td valign="top" width="83">
                </td>
            </tr>

            <tr>
                <td valign="top" width="582" colspan="3">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font size="2">Indicate <font style="FONT-SIZE: 9pt">by</font> <font style="FONT-SIZE: 9pt">check</font> <font style="FONT-SIZE: 9pt">mark</font> <font style="FONT-SIZE: 9pt">whether</font> <font style="FONT-SIZE: 9pt">the</font> <font style="FONT-SIZE: 9pt">registrant</font> <font style="FONT-SIZE: 9pt">is</font>
                    <font style="FONT-SIZE: 9pt">a</font> <font style="FONT-SIZE: 9pt">shell</font> <font style="FONT-SIZE: 9pt">company</font> <font style="FONT-SIZE: 9pt">(as</font> <font style="FONT-SIZE: 9pt">defined</font> <font style="FONT-SIZE: 9pt">in</font> <font style="FONT-SIZE: 9pt">Rule</font> <font style="FONT-SIZE: 9pt">12b-2</font> <font style="FONT-SIZE: 9pt">of</font> <font style="FONT-SIZE: 9pt">the</font> <font style="FONT-SIZE: 9pt">Exchange</font> Act).</font></font></p>
                </td>

                <td valign="top" width="83">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font size="2">Yes: <font style="FONT-SIZE: 9pt; COLOR: #000000; FONT-FAMILY: 'WINGDINGS 2'">&pound;</font><font style="FONT-SIZE: 9pt">No:</font> <font style="FONT-SIZE: 9pt; COLOR: #000000; FONT-FAMILY: 'WINGDINGS 2'">R</font></font></font></p>
                </td>
            </tr>
        </table>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Indicate the number of shares outstanding of each of the issuer&rsquo;s classes of Common Stock, as of the latest practicable date.</p>

        <p></p>

        <table style="MARGIN-LEFT: 0in" cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
            <tr>
                <td valign="top" width="50%">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 9pt">Common</font></b> <b><font style="FONT-SIZE: 9pt">Stock,</font></b> <b><font style="FONT-SIZE: 9pt">$.01</font></b> <b><font style="FONT-SIZE: 9pt">par</font></b> <b><font style="FONT-SIZE: 9pt">value</font></b></p>
                </td>

                <td valign="top" width="50%">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 9pt">1,946,935</font></b> <b><font style="FONT-SIZE: 9pt">shares</font></b></p>
                </td>
            </tr>

            <tr>
                <td valign="top" width="50%">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 9pt">(Class)</font></b></p>
                </td>

                <td valign="top" width="50%">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 9pt">(Outstanding</font></b> <b><font style="FONT-SIZE: 9pt">at</font></b> <b><font style="FONT-SIZE: 9pt">November</font></b> <b><font style="FONT-SIZE: 9pt">2,</font></b> <b><font style="FONT-SIZE: 9pt">2009</font></b><b><font style="FONT-SIZE: 9pt">)</font></b></p>
                </td>
            </tr>
        </table>

        <p></p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
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        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="center"><font size="2"><b><font style="FONT-SIZE: 10pt">NEW</font></b> <b><font style="FONT-SIZE: 10pt">CONCEPT</font></b> <b><font style="FONT-SIZE: 10pt">ENERGY,</font></b> <b><font style="FONT-SIZE: 10pt">INC.</font></b> <b><font style="FONT-SIZE: 10pt">AND</font></b> <b>SUBSIDIARIES</b></font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="center"><font size="2">Index to Quarterly Report on Form 10-Q</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="center"><font size="2">Period ended September 30, 2009</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="center">&nbsp;</p>

        <p align="center"></p>

        <table cellspacing="0" cellpadding="0" width="100%" align="right" border="0">
            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="94%"><font face="Times New Roman" size="2">PART I: FINANCIAL INFORMATION</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman" size="2">3</font></td>
            </tr>

            <tr>
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Item 1. Financial Statements</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">3</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Balance Sheets</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">3</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Statements of Operations</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">5</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Statements of Cash Flows</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">6</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes To Consolidated Financial Statements</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">7</font></td>
            </tr>

            <tr>
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">11</font></td>
            </tr>

            <tr>
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Item 3. Quantitative and Qualitative Disclosures About Market Risk</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">16</font></td>
            </tr>

            <tr>
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Item 4. Controls and Procedures</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">16</font></td>
            </tr>

            <tr>
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">PART II: OTHER INFORMATION</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">17</font></td>
            </tr>

            <tr>
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Item 2. Unregistered Sales of Equity Securities and Use of Proceeds</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">17</font></td>
            </tr>

            <tr>
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Item 6. Exhibits</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">17</font></td>
            </tr>

            <tr>
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Signatures</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">19</font></td>
            </tr>
        </table>
        <br>
        <br>

        <p align="center">&nbsp;</p>

        <p align="center">&nbsp;</p>

        <p align="center">&nbsp;</p>

        <p align="center">&nbsp;</p>

        <p align="center">&nbsp;</p>

        <p align="center">&nbsp;</p>

        <p align="center">&nbsp;</p>

        <p align="center">&nbsp;</p>

        <p align="center">&nbsp;</p>

        <p align="center">&nbsp;</p>

        <p align="center">&nbsp;</p>

        <p align="center">&nbsp;</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">2</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" size="2">
        </div>

        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="center"><b><a name="_Toc229905031"><font size="2">PART</font></a> <font size="2">I: FINANCIAL INFORMATION</font></b></p>

        <p align="left"><a name="_Toc451152481"></a><a name="_Toc467054463"></a><a name="_Toc229905032"><strong><u><font size="2">Item</font></u></strong></a><strong><u><font size="2">1. Financial Statements</font></u></strong></p>

        <p align="center"><a name="_Toc162771803"></a><a name="_Toc162771865"></a><a name="_Toc229905033"></a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <a name="OLE_LINK3"><strong>New</strong></a> <strong>Concept Energy, Inc. and Subsidiaries</strong></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="center"><font size="2"><font style="FONT-SIZE: 11pt">CONSOLIDATED</font> <font style="FONT-SIZE: 11pt">BALANCE</font> <font style="FONT-SIZE: 11pt">SHEETS<br>
        (</font><i><font style="FONT-SIZE: 11pt">amounts</font></i> <i><font style="FONT-SIZE: 11pt">in</font></i> <i><font style="FONT-SIZE: 11pt">thousands,</font></i> <i>except</i> <i><font style="FONT-SIZE: 11pt">share</font></i> <i><font style="FONT-SIZE: 11pt">amounts</font></i><font style="FONT-SIZE: 11pt">)</font></font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="center"></p>

        <table cellspacing="0" cellpadding="0" width="100%" align="right" border="0">
            <tr valign="bottom">
                <td align="left" width="66%">
                </td>

                <td align="left" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="2%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="12%">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">September 30,</font></p>
                </td>

                <td align="left" width="3%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="12%">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">December 31,</font></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman, Times, serif" size="2"><strong>Assets</strong></font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">2009</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">2008</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td>
                </td>

                <td>
                    <p align="center"><font size="2">(Unaudited)</font></p>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2"><strong>Current assets</strong></font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr bgcolor="#ffffff">
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">111</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">190</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable &ndash; trade</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">180</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">353</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Note and interest receivable &ndash; related party</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">11,170</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">10,632</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Other current assets (including $189 from related parties in (2008)</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">743</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">527</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp; </font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="left">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Total current assets</strong></font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">12,204</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">11,702</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ccdbe3">
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2"><strong>Oil and natural gas properties (full cost accounting method):</strong></font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr bgcolor="#ccdbe3">
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Proved developed and undeveloped oil and gas properties</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">10,795</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">10,688</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ccdbe3">
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2"><strong>Property and equipment, net of depreciation</strong></font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr bgcolor="#ccdbe3">
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Land, buildings and equipment - oil and gas operations</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">1,363</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">1,291</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Other</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">137</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">149</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ffffff">
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>&nbsp;Total property and equipment</strong></font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">1,500</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">1,440</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ffffff">
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2"><strong>Other assets</strong></font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">229</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">228</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ffffff">
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2"><strong>Total Assets</strong></font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">24,728</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">24,058</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>
        </table>
        <br>
        &nbsp;<br>
        <br>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px">&nbsp;</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="center"><font size="2">The accompanying notes are an integral part of these <font style="FONT-SIZE: 10pt">Consolidated</font> <font style="FONT-SIZE: 10pt">Financial</font> <font style="FONT-SIZE: 10pt">Statements</font>.</font></p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">3</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" size="2">
        </div>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="center"><b>New</b> <b>Concept</b> <b>Energy,</b> <b>Inc.</b> <b>and</b> <b>Subsidiaries</b></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="center"><font size="2"><font style="FONT-SIZE: 11pt">CONSOLIDATED</font> <font style="FONT-SIZE: 11pt">BALANCE</font> <font style="FONT-SIZE: 11pt">SHEETS</font> <font style="FONT-SIZE: 11pt">-</font> <font style="FONT-SIZE: 11pt">CONTINUED<br>
        (</font><i><font style="FONT-SIZE: 11pt">amounts</font></i> <i><font style="FONT-SIZE: 11pt">in</font></i> <i><font style="FONT-SIZE: 11pt">thousands,</font></i> <i><font style="FONT-SIZE: 11pt">except</font></i> <i><font style="FONT-SIZE: 11pt">share</font></i> <i>amounts</i><font style="FONT-SIZE: 11pt">)</font></font></p>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="63%">
                </td>

                <td align="left" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="2%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="13%">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">September 30,</font></p>
                </td>

                <td align="left" width="4%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="13%">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">December 31,</font></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman, Times, serif" size="2"><strong>Liabilities And Stockholders&rsquo; Equity</strong></font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">2009</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">2008</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                    <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Unaudited)</font></p>
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" colspan="9"><font face="Times New Roman, Times, serif" size="2"><strong>Current liabilities</strong>&nbsp;&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ffffff">
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3" height="12">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable &ndash; trade</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">220</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">202</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">2,524</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">1,944</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ccdbe3">
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Total current liabilities</strong></font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">2,744</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">2,146</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ccdbe3">
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2"><strong>Long-term debt</strong></font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">1,171</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">1,026</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ccdbe3">
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2"><strong>Other long-term liabilities</strong></font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">333</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">394</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ccdbe3">
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Total liabilities</strong></font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">4,248</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">3,566</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ccdbe3">
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" colspan="9"><font face="Times New Roman, Times, serif" size="2"><strong>Stockholders&rsquo; equity</strong>&nbsp;&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, Series B</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">1</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">1</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" colspan="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Common stock, $.01 par value; authorized, 100,000,000&nbsp;&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" colspan="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares; issued and outstanding, 1,946,935 shares at&nbsp;&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;September 30, 2009 and December 31, 2008</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">20</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">20</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">58,838</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">58,838</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">(38,379</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">(38,367</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>
            </tr>

            <tr bgcolor="#ccdbe3">
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">20,480</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">20,492</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ccdbe3">
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2"><strong>Total Liabilities &amp; Equity</strong></font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">24,728</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">24,058</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>
        </table>
        <font style="FONT-SIZE: 11pt">&nbsp; </font><br>
        <br>

        <p></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="center"><font size="2">The <font style="FONT-SIZE: 10pt">accompanying</font> <font style="FONT-SIZE: 10pt">notes</font> <font style="FONT-SIZE: 10pt">are</font> <font style="FONT-SIZE: 10pt">an</font> <font style="FONT-SIZE: 10pt">integral</font> <font style="FONT-SIZE: 10pt">part</font> <font style="FONT-SIZE: 10pt">of</font> <font style="FONT-SIZE: 10pt">these</font>
        <font style="FONT-SIZE: 10pt">Consolidated</font> <font style="FONT-SIZE: 10pt">Financial</font> <font style="FONT-SIZE: 10pt">Statements.</font></font></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="center">&nbsp;</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">4</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" size="2">
        </div>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="COLOR: #000000">New</font></b> <b><font style="COLOR: #000000">Concept</font></b> <b><font style="COLOR: #000000">Energy,</font></b> <b><font style="COLOR: #000000">Inc.</font></b> <b><font style="COLOR: #000000">and</font></b> <b><font style="COLOR: #000000">Subsidiaries</font></b></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-WEIGHT: normal; FONT-SIZE: 11pt; TEXT-TRANSFORM: uppercase; COLOR: #000000"><a name="_Toc166649574"></a><a name="_Toc229905034">Consolidated</a> Statements</font> <font style="FONT-WEIGHT: normal; FONT-SIZE: 11pt; TEXT-TRANSFORM: uppercase; COLOR: #000000">of</font>
        <font style="FONT-WEIGHT: normal; FONT-SIZE: 11pt; TEXT-TRANSFORM: uppercase; COLOR: #000000">Operations</font></b></p>

        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><i><font style="FONT-WEIGHT: normal; FONT-SIZE: 11pt">(amounts</font></i> <i><font style="FONT-WEIGHT: normal; FONT-SIZE: 11pt">in</font></i> <i><font style="FONT-WEIGHT: normal; FONT-SIZE: 11pt">thousands,</font></i> <i><font style="FONT-WEIGHT: normal; FONT-SIZE: 11pt">except</font></i>
        <i><font style="FONT-WEIGHT: normal; FONT-SIZE: 11pt">per</font></i> <i><font style="FONT-WEIGHT: normal; FONT-SIZE: 11pt">share</font></i> <i><font style="FONT-WEIGHT: normal; FONT-SIZE: 11pt">data)</font></i></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font size="2">(Unaudited)</font></p>

        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="52%">
                </td>

                <td align="left" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td colspan="4">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">For The&nbsp;Three Month</font></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td colspan="4">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">For The&nbsp;Nine Month</font></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td colspan="4">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">Period&nbsp;&nbsp;Ended</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td colspan="4">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">Period&nbsp;&nbsp;Ended</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td colspan="4">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">September 30,</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td colspan="4">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">September 30,</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">2009</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">2008</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">2009</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">2008</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Revenue</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oil and gas operations, net of royalties</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">285</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">154</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">966</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">154</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real estate operations</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">685</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">704</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">2,121</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">2,107</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">970</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">858</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">3,087</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">2,261</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Operating expenses</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oil and gas operations</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">329</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">70</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">1,086</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">70</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real estate operations</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">293</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">338</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">1,016</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">966</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease expense</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">242</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">244</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">719</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">717</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate general and administrative</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">169</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">108</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">666</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">633</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">1,033</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">760</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">3,487</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">2,386</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ffffff">
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income (loss)</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">(63</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">98</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">(400</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">(125</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>
            </tr>

            <tr bgcolor="#ffffff">
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Other income (expense)</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">138</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">479</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">432</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">729</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">(31</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">(92</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">(230</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of leasehold interest</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">16,440</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">5</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">45</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">48</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">457</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">112</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">524</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">388</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">17,396</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ccdbe3">
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) from continuing operations</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">49</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">622</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">(12</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">17,271</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for income taxes</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">140</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">1,766</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ffffff">
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Net income (loss) applicable to common shares</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">49</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">482</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">(12</font></td>

                <td valign="top" align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">15,505</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ffffff">
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Net earnings (loss) per common share &ndash;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;basic and diluted</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">0.03</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">0.25</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">(0.01</font></td>

                <td valign="top" align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">8.93</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Weighted average of common and equivalent shares</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;outstanding &ndash; basic and diluted</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">1,947</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">1,937</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">1,947</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">1,736</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>
        </table>
        <br>
        <br>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="center"><font size="2">The <font style="FONT-SIZE: 10pt">accompanying</font> <font style="FONT-SIZE: 10pt">notes</font> <font style="FONT-SIZE: 10pt">are</font> <font style="FONT-SIZE: 10pt">an</font> <font style="FONT-SIZE: 10pt">integral</font> <font style="FONT-SIZE: 10pt">part</font> <font style="FONT-SIZE: 10pt">of</font> <font style="FONT-SIZE: 10pt">these</font>
        <font style="FONT-SIZE: 10pt">Consolidated</font> <font style="FONT-SIZE: 10pt">Financial</font> <font style="FONT-SIZE: 10pt">Statements.</font></font></p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">5</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" size="2">
        </div>

        <p align="center"><strong>New Concept Energy, Inc. and Subsidiaries</strong></p>

        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font size="2"><font style="FONT-WEIGHT: normal; FONT-SIZE: 10pt; TEXT-TRANSFORM: uppercase; COLOR: #000000"><font size="3">ConsolidatedStatements</font> <font style="FONT-WEIGHT: normal; FONT-SIZE: 11pt; TEXT-TRANSFORM: uppercase; COLOR: #000000">of</font>
        <font style="FONT-WEIGHT: normal; FONT-SIZE: 11pt; TEXT-TRANSFORM: uppercase; COLOR: #000000">CASH FLOWS</font></font></font></b></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font size="2"><i><font style="FONT-SIZE: 11pt; COLOR: #000000">(amounts</font></i> <i><font style="FONT-SIZE: 11pt; COLOR: #000000">in</font></i> <i><font style="FONT-SIZE: 11pt; COLOR: #000000">thousands)</font></i></font></p>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="65%">
                </td>

                <td align="left" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="2%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td colspan="4">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">For the&nbsp;Nine Month</font></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td colspan="4">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">Period Ended&nbsp;September 30,</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">2009</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">2008</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td>
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">(Unaudited)</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td>
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">(Unaudited)</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Cash flows from operating activities</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net earnings from continuing operations</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">(12</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">15,505</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" colspan="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net earnings (loss) to net&nbsp;&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" colspan="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;cash provided by operating activities:&nbsp;&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation, depletion and amortization</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">281</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">43</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of mineral interests</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">(16,440</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in deferred taxes</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">250</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities:</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest receivable</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">(260</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">83</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current and non-current assets</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">(44</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">(637</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">1,516</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and other liabilities</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">537</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">1,482</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest payable</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">87</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current maturities of long-term debt</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">90</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">589</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">1,892</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ccdbe3">
                <td align="left" colspan="9">&nbsp;</td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" colspan="9"><font face="Times New Roman, Times, serif" size="2">Cash flows provided by (used in) investing activities&nbsp;&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of mineral rights</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">23,288</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans to affiliates</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">(278</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">(19,232</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans to affiliates - repayment</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">10,540</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment in oil and gas operations</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">(327</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">(11,154</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed asset additions</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">(121</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">(1,316</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assets held for sale</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">(600</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) investing activities</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">(726</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">1,526</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ffffff">
                <td align="left" colspan="9">&nbsp;</td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" colspan="9"><font face="Times New Roman, Times, serif" size="2">Cash flows provided by (used in) financing activities&nbsp;&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of common stock</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">2,831</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of notes payable</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">(6,921</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt created for the CESI acquisition</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">1,177</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from notes payable</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">58</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ffffff">
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">58</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">(2,913</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>
            </tr>

            <tr bgcolor="#ffffff">
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in cash and cash equivalents</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">(79</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">505</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ffffff">
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents at beginning of period</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">190</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">172</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ffffff">
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents at end of period</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">111</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">677</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>
        </table>

        <p align="center"><br>
        The <font style="FONT-SIZE: 10pt">accompanying</font> <font style="FONT-SIZE: 10pt">notes</font> <font style="FONT-SIZE: 10pt">are</font> <font style="FONT-SIZE: 10pt">an</font> <font style="FONT-SIZE: 10pt">integral</font> <font style="FONT-SIZE: 10pt">part</font> <font style="FONT-SIZE: 10pt">of</font> <font style="FONT-SIZE: 10pt">these</font> <font style="FONT-SIZE: 10pt">Consolidated</font> <font style="FONT-SIZE: 10pt">Financial</font>
        <font style="FONT-SIZE: 10pt">Statements.</font></p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">6</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" size="2">
        </div>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="center"><b><a name="_Toc41185696">New</a></b> <b>Concept</b> <b>Energy,</b> <b>Inc.</b> <b>and</b> <b>Subsidiaries</b></p>

        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="center"><b><a name="_Toc229905036">Notes</a> To Consolidated Financial Statements</b></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="left"><b>Note A: Basis of Presentation</b></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">The accompanying unaudited consolidated financial statements include the accounts of New Concept Energy, Inc. and its majority-owned subsidiaries (collectively, &ldquo;NCE&rdquo; or the &ldquo;Company&rdquo;). All significant intercompany transactions and accounts have been eliminated. Certain 2008 balances have been reclassified to conform
            to the 2009 presentation.</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">The unaudited financial statements included herein have been prepared by the Company without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. The financial statements reflect all adjustments that are, in the opinion of management, necessary to fairly present such information. All such adjustments are of
            a normal recurring nature. Although the Company believes that the disclosures are adequate to make the information presented not misleading, certain information and footnote disclosures, including a description of significant accounting policies normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America, have been condensed or omitted pursuant to such rules and regulations.</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><b>These</b> <b>financial</b> <b>statements</b> <b>should</b> <b>be</b> <b>read</b> <b>in</b> <b>conjunction</b> <b>with</b> <b>the</b> <b>consolidated</b> <b>financial</b> <b>statements</b> <b>and</b> <b>notes</b> <b>thereto</b> <b>included</b> <b>in</b> <b>the</b> <b>Company&rsquo;s</b> <b>Annual</b> <b>Report</b> <b>on</b> <b>Form</b>
            <b>10-K</b> <b>for</b> <b>the</b> <b>fiscal</b> <b>year</b> <b>ending</b> <b>December</b> <b>31,</b> <b>2008.</b> <b>Operating</b> <b>results</b> <b>for</b> <b>the</b> <b>three</b> <b>and</b> <b>nine</b> <b>month</b> <b>periods</b> <b>ended</b> <b>September</b> <b>30</b><b>,</b> <b>2009</b> <b>are</b> <b>not</b> <b>necessarily</b> <b>indicative</b> <b>of</b> <b>the</b> <b>results</b> <b>that</b> <b>may</b> <b>be</b> <b>expected</b> <b>for</b> <b>any</b> <b>subsequent</b>
            <b>quarter</b> <b>or</b> <b>for</b> <b>the</b> <b>fiscal</b> <b>year</b> <b>ending</b> <b>December</b> <b>31,</b> <b>2009.</b></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><b>NOTE</b> <b>B:</b> <b>NATURE</b> <b>OF</b> <b>OPERATIONS</b></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">The Company operates oil and gas wells and holds mineral leases in Athens and Meigs Counties in Ohio and in Calhoun, Jackson and Roane Counties in West Virginia through its wholly owned subsidiaries Mountaineer State Energy, Inc. and Mountaineer State Operations, LLC.</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">NCE also leases and operates a retirement community in King City Oregon, with a capacity of 114 residents.&nbsp;</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><b>Note</b> <b>C:</b> <b>Summary</b> <b>of</b> <b>Significant</b> <b>Accounting</b> <b>Policies</b></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">We consider accounting policies related to our estimates of depreciation, amortization and depletion, segments, oil and gas properties, oil and gas reserves, gas gathering assets, office and field equipment, revenue recognition and gas imbalances, leases, revenue recognition for real estate operations, impairment, and sales of real estate as
            significant accounting policies. The policies include significant estimates made by management using information available at the time the estimates are made. However, these estimates could change materially if different information or assumptions were used. These policies are summarized in our Annual Report on Form 10-K for the year ended December 31, 2008.&nbsp;</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><b>Note</b> <b>D:</b> <b>Short</b> <b>Term</b> <b>Notes</b> <b>Receivable</b> <b>&ndash;</b> <b>Related</b> <b>Party</b></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">In July 2006, the Company made an unsecured $1.4 million loan to Eurenergy Resources Corporation (&ldquo;Eurenergy&rdquo;), a related party. The loan had an annual interest rate of 8% with principal and interest payable within 30 days after demand, and if not sooner demanded, on July 17, 2007. Effective July 17, 2007 the existing accrued
            interest was added to the principal balance, which increased the principal balance to $1,487,160, and the maturity date was extended to July 17, 2009. All other terms of the note remained the same. At May 21, 2009 the balance due including accrued interest totaled $1,798,456.</p>
        </blockquote>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">7</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" size="2">
        </div>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">In June of 2008 the Company entered into a letter of credit agreement with Eurenergy. The terms of the agreement call for interest at the prime rate plus two percent. At May 21, 2009 the balance of the note and accrued interest was $2,172,441.<br>
            &nbsp;<br>
            On November 20, 2007 the Company made a $630,000 loan to Prime Income Asset Management, Inc. (&ldquo;PIAMI&rdquo;). In 2008 the Company made additional net advances on the loan totaling approximately $6.3 million. The initial loan and the additional advances have been combined into a new loan with interest at the prime rate plus two percent.<br>
            &nbsp;<br>
            On May 21, 2009 PIAMI acquired both Eurenergy notes receivable at face value plus accrued interest totaling $3,970,897. At September 30, 2009 the balance due including accrued interest on the note receivable from PIAMI was $10,775,752.<br>
            &nbsp;<br>
            In November 2007 the Company entered into an agreement with Eurenergy to provide accounting and administrative services at $15,000 per month. As of September 30, 2009 Eurenergy owes the Company $165,000 for such services. In June 2009 the agreement with Eurenergy expired. The Company entered into a similar agreement with Energy Advisors, LLC in July 2009. As of September 30, 2009 Energy Advisors owes the Company $45,000 for accounting and administrative services.&nbsp;</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="left"><strong>NOTE E &ndash; CONTINGENCIES</strong></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="left"><u>Chesapeake Exploration Limited Partnership and Chesapeake Operating, Inc. (&ldquo;Chesapeake&rdquo;)</u></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">In January 2006 the Company entered into a joint operating agreement evidencing its acquisition of a 5% interest in two gas wells being drilled and ultimately operated by Chesapeake. The Company relied on the cost projections provided by Chesapeake to make its investment decision. Subsequent to its investment, the Company received an invoice
            from Chesapeake for $556,217, which according to Chesapeake represents the Company&rsquo;s five percent share of additional costs incurred by Chesapeake in drilling the wells. The Company believes that these additional costs far exceed any reasonable expense that should have been incurred in drilling the two wells and were incurred without notifying the Company of such expenses. The Company has requested an accounting of the additional expenses and a reconciliation of the final
            costs to the cost estimates previously presented. In April 2007 Chesapeake filed a lawsuit against the Company and others in State District Court in Tarrant County, Texas.</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="left"><u>Other</u></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">The Company has been named as a defendant in other lawsuits in the ordinary course of business. Management is of the opinion that these lawsuits will not have a material effect on the financial condition, results of operations or cash flows of the Company.</p>
        </blockquote>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">8</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" size="2">
        </div>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p dir="ltr" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><b>NOTE</b> <b>F</b> <b>&ndash;</b> <b>OPERATING</b> <b>SEGMENTS</b></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">The following table reconciles the segment information to the corresponding amounts in the Consolidated Statements of Operations and total assets:</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"></p>

            <table cellspacing="0" cellpadding="0" width="95%" border="0">
                <tr valign="bottom">
                    <td align="left" width="37%">
                    </td>

                    <td align="left" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" width="2%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="11%">
                        <p align="center"><font face="Times New Roman, Times, serif" size="2">Oil and Gas&nbsp;</font></p>
                    </td>

                    <td align="left" width="4%">
                    </td>

                    <td align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="11%">
                        <p align="center"><font face="Times New Roman, Times, serif" size="2">Retirement</font></p>
                    </td>

                    <td align="left" width="3%">
                    </td>

                    <td align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="11%">
                    </td>

                    <td align="left" width="3%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="11%">
                    </td>

                    <td align="left" width="2%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2"><strong><u>Nine months ended September 30, 2009</u></strong></font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid">
                        <p align="center"><font face="Times New Roman, Times, serif" size="2">Operations</font></p>
                    </td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid">
                        <p align="center"><font face="Times New Roman, Times, serif" size="2">Facility</font></p>
                    </td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid">
                        <p align="center"><font face="Times New Roman, Times, serif" size="2">Corporate</font></p>
                    </td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid">
                        <p align="center"><font face="Times New Roman, Times, serif" size="2">Total</font></p>
                    </td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr>
                    <td align="left">&nbsp;</td>

                    <td align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td align="right">
                    </td>

                    <td align="right">
                    </td>

                    <td align="left">
                    </td>

                    <td align="right">
                    </td>

                    <td align="right">
                    </td>

                    <td align="left">
                    </td>

                    <td align="right">
                    </td>

                    <td align="right">
                    </td>

                    <td align="left">
                    </td>

                    <td align="right">
                    </td>

                    <td align="right">
                    </td>

                    <td align="left">
                    </td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3" height="18">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">Operating revenue</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">966</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">2,121</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">3,087</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr bgcolor="#ffffff">
                    <td align="left">&nbsp;</td>

                    <td align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td align="right">
                    </td>

                    <td align="right">
                    </td>

                    <td align="left">
                    </td>

                    <td align="right">
                    </td>

                    <td align="right">
                    </td>

                    <td align="left">
                    </td>

                    <td align="right">
                    </td>

                    <td align="right">
                    </td>

                    <td align="left">
                    </td>

                    <td align="right">
                    </td>

                    <td align="right">
                    </td>

                    <td align="left">
                    </td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3" height="17">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">Operating expenses</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">846</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">1,996</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">363</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">3,205</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" bgcolor="#ffffff" height="18">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">Depreciation and amortization</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">20</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">42</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">62</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3" height="17">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">Depletion</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">220</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;--</font></p>
                    </td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;220</font></p>
                    </td>
                </tr>

                <tr valign="bottom" bgcolor="#ffffff" height="18">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Total Operating Expenses</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">1,086</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">2,038</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">363</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">3,487</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3" height="18">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">Interest expense</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">92</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">92</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" bgcolor="#ffffff" height="17">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">Other income</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">10</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">38</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">48</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3" height="19">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">Interest income</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">432</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">432</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" bgcolor="#ffffff" height="18">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">Segment operating income</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">(202</font></td>

                    <td valign="top" align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">83</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">107</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">(12</font></td>

                    <td valign="top" align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>
                </tr>
            </table>
            <br>
            <br>
        </blockquote>

        <p></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="left"><b>NOTE</b> <b>G</b> <b>&ndash;</b> <b>RECENT</b> <b>ACCOUNTING</b> <b>PRONOUNCEMENTS</b></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">In June 2009, the Financial Accounting Standards Board (&ldquo;FASB&rdquo;) issued Accounting Standard Update No. 2009-01 (&ldquo;ASU No. 2009-01&rdquo;) was issued to amend topic Accounting Standard Codification 105 (&ldquo;ASC 105&rdquo;) &ldquo;Generally Accepted Accounting Principles&rdquo; an amendment based on Statement of Financial
            Accounting Standard No. 168 &ldquo;the FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles&rdquo;. This amendment establishes the &ldquo;FASB Accounting Standards Codification&rdquo; (&ldquo;Codification&rdquo;) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with GAAP. Rules and interpretive releases of the
            Securities and Exchange Commission (SEC) under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. The Codification is effective for interim and annual periods ending on or after September 15, 2009.</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">In December 2007, the FASB issued SFAS No. 141-R now referred to as ASC 805 &ldquo;Business Combinations&rdquo;. The statement improves the reporting of information about a business combination and its effects. The statement establishes principles and requirements for how the acquirer will recognize and measure the identifiable assets
            acquired, the liabilities assumed, and any non-controlling interest in the acquisition. Also, the statement determines the recognition and measurement of goodwill acquired in the business combination or a gain from a bargain purchase, and finally, determines the disclosure requirements to enable users of the financial statements to evaluate the nature and financial effects of the business combination. The Company has adopted this pronouncement on January 1, 2009 and will apply its
            requirements to future business combinations.</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">In April 2009, the FASB issued FSP FAS No. 157-4 now referred to as ASC 820 &ldquo;Fair Value Measurements and Disclosures&rdquo;, which provides additional guidance for applying the provisions that define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
            participants under current market conditions. It requires an evaluation of whether there has been a significant decrease in the volume and level of activity for the asset or liability in relation to normal market activity for the asset or liability. If there has been a change, transactions or quoted prices may not be indicative of fair value and a significant adjustment may need to be made to those prices to estimate fair value. Additionally, an entity must consider whether the
            observed transaction was orderly (that is, not distressed or forced). If the transaction was orderly, the obtained price can be considered a relevant observable input for determining fair value. If the transaction is not orderly, other valuation techniques must be used when estimating fair value. It was applied prospectively for interim periods ending after June&nbsp;15, 2009.</p>
        </blockquote>

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            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">In April 2009, the FASB issued FSP FAS No 107-1 and Accounting Principles Board (APB) No. 28-1 now referred to as ASC 825-10-50 &ldquo;Disclosure about Fair Value of Financial Instruments&rdquo;. It required disclosures about fair value of financial instruments in interim financial statements, in addition to the annual financial statements
            as already required and will be required for interim periods ending after June 15, 2009. The application of this standard will not have a material impact on our financial statements.</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">In May 2009, the FASB issued SFAS No. 165 now referred to as ASC 855 &ldquo;Subsequent Events&rdquo;, which establishes general standards of accounting and disclosure of events that occur after the balance sheet date but before the financial statements are issued or available to be issued. It was applied prospectively for interim periods
            ending after June 15, 2009.</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">In June 2009, the FASB issued SFAS No. 166 &ldquo;Accounting for Transfers of Financial Assets - an amendment of FASB Statement No. 140&rdquo;, to improve the relevance, representational faithfulness and comparability of the information that a reporting entity provides in its financial statements about a transfer of financial assets; the
            effects of a transfer on its financial position, financial performance and cash flows and a transferor&rsquo;s continuing involvement, if any, in transferred financial assets. This Statement must be applied as of the beginning of each reporting entity&rsquo;s first annual reporting period that begins after November 15, 2009. Additionally, on and after the effective date, the concept of a qualified special-purpose entity is no longer relevant for accounting purposes.</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">In June 2009, the FASB issued SFAS No. 167 &ldquo;Amendments to FASB Interpretation No. 46(R)&rdquo; (&ldquo;SFAS No. 167&rdquo;), which modifies the approach to determining the primary beneficiary of a variable interest entity (&ldquo;VIE&rdquo;) and requires companies to more frequently assess whether they must consolidate a VIE. The
            statement is effective as of the beginning of each reporting entity&lsquo;s first annual reporting period that begins after November 15, 2009.</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">On December 31, 2008, the SEC issued Release No. 33-8995, amending its oil and natural gas reporting requirements for oil and natural gas producing companies. The effective date of the new accounting and disclosure requirements is for annual reports filed for fiscal years ending on or after December 31, 2009. Companies are not permitted to
            comply at an earlier date. Among other things, Release No. 33-8995:</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"></p>

            <table cellspacing="0" cellpadding="0" width="95%" border="0">
                <tr valign="bottom">
                    <td align="left" width="5">
                    </td>

                    <td align="left" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td valign="top" align="left" width="2%"><font face="Times New Roman, Times, serif" size="2">&bull;</font></td>

                    <td align="left" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="97%">
                        <p align="justify"><font face="Times New Roman, Times, serif" size="2">Revises a number of definitions relating to oil and natural gas reserves to make them consistent with the Petroleum Resource Management System, which includes certain non-traditional resources in proved reserves;</font></p>
                    </td>

                    <td align="left" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr>
                    <td align="left">
                    </td>

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                    </td>

                    <td align="left">
                    </td>

                    <td valign="top" align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td align="left">&nbsp;</td>

                    <td align="left">
                    </td>

                    <td align="left">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left">
                    </td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td valign="top" align="left"><font face="Times New Roman, Times, serif" size="2">&bull;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">Permits the use of new technologies for determining oil and natural gas reserves;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr>
                    <td align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td valign="top" align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td align="left">&nbsp;</td>

                    <td align="left">
                    </td>

                    <td align="left">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left">
                    </td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td valign="top" align="left"><font face="Times New Roman, Times, serif" size="2">&bull;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td>
                        <p align="justify"><font face="Times New Roman, Times, serif" size="2">Requires the use of average prices for the trailing twelve-month period in the estimation of oil and natural gas reserve quantities and, for companies using the full cost method of accounting, in computing the ceiling limitation test, in place of a single day price as of the end of the fiscal year;</font></p>
                    </td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>
            </table>
            <br>
            <br>
        </blockquote>

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        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p dir="ltr" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">&nbsp;</p>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="95%" border="0">
                <tr valign="bottom">
                    <td align="left">
                    </td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td valign="top" align="left"><font face="Times New Roman, Times, serif" size="2">&bull;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td>
                        <p align="justify"><font face="Times New Roman, Times, serif" size="2">Permits the disclosure in filings with the SEC of probable and possible reserves and sensitivity of our proved oil and natural gas reserves to changes in prices;</font></p>
                    </td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr>
                    <td align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td valign="top" align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td align="left">&nbsp;</td>

                    <td align="left">
                    </td>

                    <td align="left">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left">
                    </td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td valign="top" align="left"><font face="Times New Roman, Times, serif" size="2">&bull;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td>
                        <p align="justify"><font face="Times New Roman, Times, serif" size="2">Requires additional disclosures (outside of the financial statements) regarding the status of undeveloped reserves and changes in status of these from period to period; and</font></p>
                    </td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr>
                    <td align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td valign="top" align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td align="left">&nbsp;</td>

                    <td align="left">
                    </td>

                    <td align="left">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left">
                    </td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td valign="top" align="left"><font face="Times New Roman, Times, serif" size="2">&bull;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td>
                        <p align="justify"><font face="Times New Roman, Times, serif" size="2">Requires a discussion of the internal controls in place in the reserve estimation process and disclosure of the technical qualifications of the technical person having primary responsibility for preparing the reserve estimates.</font></p>
                    </td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>
            </table>
            <br>
            <br>
        </blockquote>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p dir="ltr" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR">We are currently evaluating the effect of adopting the final rule on our financial statements and oil and natural gas reserve estimates and disclosures.</p>
        </blockquote>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p dir="ltr" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="left"><b><u><a name="_Toc229905037">Item</a> 2. Management's Discussion and Analysis of Financial Condition and Results of Operations</u></b></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><b>Critical Accounting Policies and Estimates</b></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">The Company&rsquo;s discussion and analysis of its financial condition and results of operations are based upon the Company&rsquo;s consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. Certain of the Company&rsquo;s accounting policies require the
            application of judgment in selecting the appropriate assumptions for calculating financial estimates. By their nature, these judgments are subject to an inherent degree of uncertainty. These judgments and estimates are based upon the Company&rsquo;s historical experience, current trends and information available from other sources that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets
            and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.&nbsp;</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">The Company&rsquo;s significant accounting policies are summarized in Note B to our consolidated financial statements in our Annual Report on Form 10-K. The Company believes the following critical accounting policies are more significant to the judgments and estimates used in the preparation of its consolidated financial statements.
            Revisions in such estimates are recorded in the period in which the facts that give rise to the revisions become known.&nbsp;</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><b>Oil</b> <b>and</b> <b>Gas</b> <b>Property</b> <b>Accounting</b></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Oil and gas exploration and production companies may elect to account for their property costs using either the &ldquo;successful efforts&rdquo; or &ldquo;full cost&rdquo; accounting method. Under the successful efforts method, unsuccessful exploratory well costs, as well as all exploratory geological and geophysical costs, are expensed.
            Under the full cost method, all exploration costs are capitalized, regardless of success. Selection of the oil and gas accounting method can have a significant impact on a Company&rsquo;s financial results. We use the full cost method of accounting and generally pursue acquisitions and development of proved reserves as opposed to exploration activities. Once we incur costs, they are recorded in the depletable pool of proved properties or in unproved properties, collectively, the
            full cost pool.</p>
        </blockquote>

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            <p dir="ltr" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><br>
            We evaluate possible impairment of producing properties when conditions indicate that the properties may be impaired. Such conditions include a significant decline in product prices which we believe to be other than temporary or a significant downward revision in estimated proved reserves for a field or area. An impairment provision must be recorded to adjust the net book value of the property to its estimated fair value if the net book value exceeds management&rsquo;s estimate of
            future net cash flows from the property. The estimated fair value of the property is generally calculated as the discounted present value of future net cash flows. Our estimates of cash flows are based on the latest available proved reserve and production information and management&rsquo;s estimates of future product prices and costs, based on available information such as forward strip prices and industry forecasts and analysis.&nbsp;</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">The impairment assessment process is primarily dependent upon the estimate of proved reserves. Any overstatement of estimated proved reserve quantities would result in an overstatement of estimated future net cash flows, which could result in an understated assessment of impairment. The subjectivity and risks associated with estimating
            proved reserves are discussed under &ldquo;Oil and Gas Reserves&rdquo; below. Prediction of product prices is subjective since prices are largely dependent upon supply and demand resulting from global and national conditions generally beyond our control. However, management&rsquo;s assessment of product prices for purposes of impairment is consistent with that used in its business plans and investment decisions. We believe that a sensitivity analysis regarding the effect of changes
            in assumptions on estimated impairment is impracticable to provide because of the number of assumptions and variables involved which have interdependent effects on the potential outcome.</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><b>Oil and Gas Reserves</b></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Our proved oil and gas reserves are estimated by independent petroleum engineers. Reserve engineering is a subjective process that is dependent upon the quality of available data and the interpretation thereof, including evaluations and extrapolations of well flow rates and reservoir pressure. Estimates by different engineers often vary,
            sometimes significantly. In addition, physical factors such as the results of drilling, testing and production subsequent to the date of an estimate, as well as economic factors such as changes in product prices, may justify revision of such estimates. Because proved reserves are required to be estimated using prices at the date of the evaluation, estimated reserve quantities can be significantly impacted by changes in product prices.</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Proved reserves, as defined by the Financial Accounting Standards Board (FASB) and adopted by the Securities and Exchange Commission, are limited to reservoir areas that indicate economic productibility through actual production or conclusive formation tests, and generally cannot extend beyond the immediately adjoining undrilled portion.
            Although improved technology often can identify possible or probable reserves other than by drilling, under current SEC rules, these reserves cannot be estimated and disclosed.<br>
            &nbsp;<br>
            Depreciation, depletion and amortization (DD&amp;A) of producing properties are computed on the unit-of-production method based on estimated proved oil and gas reserves. While total DD&amp;A expense for the life of a property is limited to the property&rsquo;s total cost, proved reserve revisions result in a change in timing of when DD&amp;A expense is recognized. Downward revisions of proved reserves result in an acceleration of DD&amp;A expense, while upward revisions tend to
            lower the rate of DD&amp;A expense recognition.</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">The standardized measure of discounted future net cash flows and changes in such cash flows are prepared using assumptions required by the FASB and the SEC. Such assumptions include using year-end oil and gas prices and year-end costs for estimated future development and production expenditures. Discounted future net cash flows are
            calculated using a ten percent rate. Changes in any of these assumptions could have a significant impact on the standardized measure.</p>
        </blockquote>

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            <p dir="ltr" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><b>Doubtful</b> <b>Accounts</b></p>
        </blockquote>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">The Company&rsquo;s allowance for doubtful accounts receivable and notes receivable is based on an analysis of the risk of loss on specific accounts. The analysis places particular emphasis on past due accounts. Management considers such information as the nature and age of the receivable, the payment history of the tenant, customer or other
            debtor and the financial condition of the tenant or other debtor. Management&rsquo;s estimate of the required allowance, which is reviewed on a quarterly basis, is subject to revision as these factors change.</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><b>Deferred Tax Assets&nbsp;</b></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Significant management judgment is required in determining the provision for income taxes, deferred tax assets and liabilities and any valuation allowance recorded against net deferred tax assets. The future recoverability of the Company&rsquo;s net deferred tax assets is dependent upon the generation of future taxable income prior to the
            expiration of the loss carry forwards. At September 30, 2009 the Company had a deferred tax asset due to tax deductions available to it in future years. However, as management could not determine that it was more likely than not that the benefit of the deferred tax asset would be realized, a one hundred percent valuation allowance was established.</p>
        </blockquote>

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        <p></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><b>Liquidity</b> <b>and</b> <b>Capital</b> <b>Resources</b></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">At September 30, 2009, the Company had current assets of $12.2 million and current liabilities of $2.8 million.</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Cash and cash equivalents at September 30, 2009 were $111,000 as compared to $190,000 at December 31, 2008.&nbsp;</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Net cash provided by operating activities was $589,000 for the nine months ended September 30, 2009. During the nine-month period, the Company had a net loss of $12,000.&nbsp;</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Net cash used in investing activities was $726,000 for the nine months ended September 30, 2009, consisting of loans to affiliated entities, investments in potential oil and gas operations and the purchase of equipment and other capitalized drilling costs at the Company&rsquo;s oil and gas production facility.</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><b>Results</b> <b>of</b> <b>Operations</b></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">The Company reported net income of $49,000 and a net loss of $12,000 for the three and nine months ended September 30, 2009, as compared to net income of $482,000 and $15.5 million for the comparable periods of 2008.<br>
            &nbsp;<br>
            <a name="OLE_LINK2">For</a> the three and nine months ended September 30, 2009, the Company recorded oil and gas revenues of $285,000 and $966,000. The oil and gas operations were acquired in the third quarter of 2008. Therefore, period to period comparisons are irrelevant. During the same periods in 2009, the Company recorded revenues of $685,000 and $2.1 million from its retirement property compared to $704,000 and $2.1 million for the comparable periods in 2008.</p>
        </blockquote>

        <p></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">For the three and nine months ended September 30, 2009, the Company recorded oil and gas operating expenses of $329,000 and $1.1 million. The oil and gas operations were acquired in the third quarter of 2008. Therefore, period to period comparisons are irrelevant. During the same periods in 2009, operating expenses and lease expense at the
            retirement property were $535,000 and $1.7 million as compared to $582,000 and $1.7 million for the comparable periods in 2008.<br>
            &nbsp;<br>
            For the three and nine months ended September 30, 2009, corporate general &amp; administrative expenses were $169,000 and $666,000 as compared to $108,000 and $633,000 for the comparable periods in 2008. The increase is primarily due to increased legal and professional fees.</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">For the three and nine months ended September 30, 2009, interest income was $138,000 and $432,000 as compared to $479,000 and $729,000 for the comparable periods in 2008. The decrease is primarily due to decreases in the prime lending rate from 2008 to 2009 and the decreased receivable on which interest is computed over the comparable
            periods.<br>
            &nbsp;<br>
            The Company recorded interest expense for the three and nine months ended September 30, 2009, of $31,000 and $92,000 as compared to $-0- and $230,000 for the comparable periods in 2008. The decrease is primarily due to the payoff of interest bearing debt during the second quarter of 2008, as well as reduced interest rates on notes payable from 2008 to 2009.</p>
        </blockquote>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">14</font></a>
        </div>

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            <hr width="100%" color="#000000" size="2">
        </div>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p dir="ltr" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Other income was $5,000 and $48,000 for the three and nine months ended September 30, 2009, as compared to $45,000 and $457,000 for the comparable periods in 2008. In 2008, the income was due to the collection of back interest from a mortgage bond receivable due to the sale of a property in August 2001. Because the mortgage bond
            was payable based on cash flow and profit of the property, the uncollected interest was not recorded until collected.</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><b><a name="_Toc451152487"></a><a name="_Toc41185699">Forward</a></b> <b>Looking</b> <b>Statements</b></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">&ldquo;Safe Harbor&rdquo; Statement under the Private Securities Litigation Reform Act of 1995: A number of the matters and subject areas discussed in this filing that are not historical or current facts deal with potential future circumstances, operations and prospects. The discussion of such matters and subject areas is qualified by the
            inherent risks and uncertainties surrounding future expectations generally, and also may materially differ from the Company&rsquo;s actual future experience involving any one or more of such matters and subject areas relating to interest rate fluctuations, the ability to obtain adequate debt and equity financing, demand, pricing, competition, construction, licensing, permitting, construction delays on new developments, contractual and licensure, and other delays on the disposition,
            transition, or restructuring of currently or previously owned, leased or managed properties in the Company&rsquo;s portfolio, and the ability of the Company to continue managing its costs and cash flow while maintaining high occupancy rates and market rate charges in its retirement community. The Company has attempted to identify, in context, certain of the factors that it currently believes may cause actual future experience and results to differ from the Company&rsquo;s current
            expectations regarding the relevant matter of subject area. These and other risks and uncertainties are detailed in the Company&rsquo;s reports filed with the Securities and Exchange Commission (&ldquo;SEC&rdquo;), including the Company&rsquo;s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><b><a name="_Toc41185703">Inflation</a></b></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">The Company&rsquo;s principal source of revenue is rents from a retirement community and fees for services rendered. The real estate operation is affected by rental rates that are highly dependent upon market conditions and the competitive environment in the areas where the property is located. Compensation to employees and maintenance are
            the principal cost elements relative to the operation of this property. Although the Company has not historically experienced any adverse effects of inflation on salaries or other operating expenses, there can be no assurance that such trends will continue or that, should inflationary pressures arise, the Company will be able to offset such costs by increasing rental rates in its real estate operation.</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><b>Environmental</b> <b>Matters</b></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">The Company has conducted environmental assessments on most of its existing owned or leased properties. These assessments have not revealed any environmental liability that the Company believes would have a material adverse affect on the Company&rsquo;s business, assets or results of operations. The Company is not aware of any such
            environmental liability. The Company believes that all of its properties are in compliance in all material respects with all federal, state and local laws, ordinances and regulations regarding hazardous or toxic substances or petroleum products. The Company has not been notified by any governmental authority and is not otherwise aware of any material non-compliance, liability or claim relating to hazardous or toxic substances or petroleum products in connection with any of its
            communities.</p>
        </blockquote>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">15</font></a>
        </div>

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            <hr width="100%" color="#000000" size="2">
        </div>

        <p dir="ltr" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><b><u><a name="_Toc229905038">Item</a> 3. Quantitative and Qualitative Disclosures About Market Risk</u></b></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><b>Interest</b> <b>Rate</b> <b>Risk</b></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Nearly all of the Company&rsquo;s debt is financed at fixed rates of interest. Therefore, the Company has minimal risk from exposure to changes in interest rates.</p>
        </blockquote>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="left"><b><u><a name="_Toc104102893"></a><a name="_Toc120441520"></a><a name="_Toc229905039">Item</a> 4. Controls and Procedures</u></b></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><a name="_Toc104102894"></a><a name="_Toc120441521">The</a> Company&rsquo;s management, including the principal executive officer, chief financial officer and principal accounting officer, conducted an evaluation as of the end of the period covered by this Report, of the effectiveness of the Company&rsquo;s disclosure controls and
            procedures. Based on that evaluation, the chief executive officer and the chief financial officer concluded that the Company&rsquo;s disclosure controls and procedures were effective as of the end of the period covered by this Report. The Company&rsquo;s management, including the chief executive officer, chief financial officer and principal accounting officer, also conducted an evaluation of the Company&rsquo;s internal controls over financial reporting to determine whether any
            changes occurred in the first fiscal quarter that materially affected, or are reasonably likely to materially affect, the Company&rsquo;s internal control over financial reporting. Based on that evaluation, there has been no such change during the first fiscal quarter.<br>
            &nbsp;<br>
            It should be noted that any system of controls, however well designed and operated, can only provide reasonable and not absolute assurance that the objectives of the system will be met. In addition, the design of any control system is based, in part, on certain assumptions about the likelihood of future events.<br>
            &nbsp;<br>
            There have been no changes in the Company&rsquo;s internal controls over financial reporting during the quarter ended September 30, 2009 that have materially affected, or are reasonably likely to affect the Company&rsquo;s internal controls over financial reporting.</p>
        </blockquote>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">16</font></a>
        </div>

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            <hr width="100%" color="#000000" size="2">
        </div>
        <b><a name="_Toc229905040"></a></b>

        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="center">&nbsp;</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif" align="center"><b>PART II: OTHER INFORMATION</b></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="left"><b><u><a name="_Toc120441522"></a><a name="_Toc229905041">Item</a> 2. Unregistered Sales of Equity Securities and Use of Proceeds</u></b></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">None</p>
        </blockquote>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="left"><b><u><a name="_Toc143051666"></a><a name="_Toc229905042"></a></u></b></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="left"><strong><u>Item 6. Exhibits</u></strong></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="left">The following exhibits are filed herewith or incorporated by reference as indicated below.</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="left"></p>

            <table cellspacing="0" cellpadding="0" width="95%" border="0">
                <tr>
                    <td align="left" width="4">
                    </td>

                    <td align="left" colspan="5">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font size="2"><b>Exhibit</b> <b>Designation</b></font></p>
                    </td>

                    <td width="96%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font size="2"><b>Exhibit</b> <b>Description</b></font></p>
                    </td>

                    <td align="left" width="1%">
                    </td>

                    <td align="left" width="1%">
                    </td>
                </tr>

                <tr>
                    <td align="left" width="4">
                    </td>

                    <td align="left" width="1%">
                    </td>

                    <td align="left" width="1%">
                    </td>

                    <td align="right" width="1%">
                    </td>

                    <td valign="top" align="right" width="1%">
                    </td>

                    <td align="left" width="2%">
                    </td>

                    <td width="96%">&nbsp;</td>

                    <td align="left" width="1%">
                    </td>

                    <td align="left" width="1%">
                    </td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left" width="4">
                    </td>

                    <td align="left" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td valign="top" align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">3.1</font></td>

                    <td align="left" width="2%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="96%">
                        <p align="justify"><font face="Times New Roman, Times, serif" size="2">Articles of Incorporation of Medical Resource Companies of America (incorporated by reference to Exhibit 3.1 to Registrant&rsquo;s Form S-4 Registration Statement No. 333-55968 dated December 21, 1992)</font></p>
                    </td>

                    <td align="left" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr bgcolor="#ffffff">
                    <td align="left" width="0%">
                    </td>

                    <td align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td align="right">
                    </td>

                    <td valign="top" align="right">
                    </td>

                    <td align="left">
                    </td>

                    <td>&nbsp;</td>

                    <td align="left" width="0%">
                    </td>

                    <td align="left" width="0%">
                    </td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left" width="0%">
                    </td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td valign="top" align="right"><font face="Times New Roman, Times, serif" size="2">3.2</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td>
                        <p align="justify"><font face="Times New Roman, Times, serif" size="2">Amendment to the Articles of Incorporation of Medical Resource Companies of America (incorporated by reference to Exhibit 3.5 to Registrant&rsquo;s Form 8-K dated April 1, 1993)</font></p>
                    </td>

                    <td align="left" width="0%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" width="0%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr bgcolor="#ffffff">
                    <td align="left" width="0%">
                    </td>

                    <td align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td align="right">
                    </td>

                    <td valign="top" align="right">
                    </td>

                    <td align="left">
                    </td>

                    <td>&nbsp;</td>

                    <td align="left" width="0%">
                    </td>

                    <td align="left" width="0%">
                    </td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left" width="0%">
                    </td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td valign="top" align="right"><font face="Times New Roman, Times, serif" size="2">3.3</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td>
                        <p align="justify"><font face="Times New Roman, Times, serif" size="2">Restated Articles of Incorporation of Greenbriar Corporation (incorporated by reference to Exhibit 3.1.1 to Registrant&rsquo;s Form 10-K dated December 31, 1995)</font></p>
                    </td>

                    <td align="left" width="0%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" width="0%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr bgcolor="#ffffff">
                    <td align="left" width="0%">
                    </td>

                    <td align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td align="right">
                    </td>

                    <td valign="top" align="right">
                    </td>

                    <td align="left">
                    </td>

                    <td>&nbsp;</td>

                    <td align="left" width="0%">
                    </td>

                    <td align="left" width="0%">
                    </td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left" width="0%">
                    </td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td valign="top" align="right"><font face="Times New Roman, Times, serif" size="2">3.4</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td>
                        <p align="justify"><font face="Times New Roman, Times, serif" size="2">Amendment to the Articles of Incorporation of Medical Resource Companies of America (incorporated by reference to Exhibit to Registrant&rsquo;s PRES 14-C dated February 27, 1996)</font></p>
                    </td>

                    <td align="left" width="0%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" width="0%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr bgcolor="#ffffff">
                    <td align="left" width="0%">
                    </td>

                    <td align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td align="right">
                    </td>

                    <td valign="top" align="right">
                    </td>

                    <td align="left">
                    </td>

                    <td align="left">&nbsp;</td>

                    <td align="left" width="0%">
                    </td>

                    <td align="left" width="0%">
                    </td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left" width="0%">
                    </td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td valign="top" align="right"><font face="Times New Roman, Times, serif" size="2">3.5</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">Bylaws of Registrant (incorporated by reference to Exhibit 3.2 to Registrant&rsquo;s Form S-4 Registration Statement No. 333-55968 dated December 21, 1992)</font></td>

                    <td align="left" width="0%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" width="0%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr bgcolor="#ffffff">
                    <td align="left" width="0%">
                    </td>

                    <td align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td align="right">
                    </td>

                    <td valign="top" align="right">
                    </td>

                    <td align="left">
                    </td>

                    <td>&nbsp;</td>

                    <td align="left" width="0%">
                    </td>

                    <td align="left" width="0%">
                    </td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left" width="0%">
                    </td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td valign="top" align="right"><font face="Times New Roman, Times, serif" size="2">3.6</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td>
                        <p align="justify"><font face="Times New Roman, Times, serif" size="2">Amendment to Section 3.1 of Bylaws of Registrant adopted October 9, 2003 (incorporated by reference to Exhibit 3.2.1 to Registrant&rsquo;s Form S-4 Registration Statement No. 333-55968 dated December 21, 1992)</font></p>
                    </td>

                    <td align="left" width="0%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" width="0%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr bgcolor="#ffffff">
                    <td align="left" width="0%">
                    </td>

                    <td align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td align="right">
                    </td>

                    <td valign="top" align="right">
                    </td>

                    <td align="left">
                    </td>

                    <td>&nbsp;</td>

                    <td align="left" width="0%">
                    </td>

                    <td align="left" width="0%">
                    </td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left" width="0%">
                    </td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td valign="top" align="right"><font face="Times New Roman, Times, serif" size="2">3.7</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td>
                        <p align="justify"><font face="Times New Roman, Times, serif" size="2">Certificate of Decrease in Authorized and Issued Shares effective November 30, 2001 (incorporated by reference to Exhibit 2.1.7 to Registrant&rsquo;s Form 10-K dated December 31, 2002)</font></p>
                    </td>

                    <td align="left" width="0%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" width="0%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr bgcolor="#ffffff">
                    <td align="left" width="0%">
                    </td>

                    <td align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td align="right">
                    </td>

                    <td valign="top" align="right">
                    </td>

                    <td align="left">
                    </td>

                    <td>&nbsp;</td>

                    <td align="left" width="0%">
                    </td>

                    <td align="left" width="0%">
                    </td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left" width="0%">
                    </td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td valign="top" align="right"><font face="Times New Roman, Times, serif" size="2">3.8</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td>
                        <p align="justify"><font face="Times New Roman, Times, serif" size="2">Certificate of Designations, Preferences and Rights of Preferred Stock dated May 7, 1993 relating to Registrant&rsquo;s Series B Preferred Stock (incorporated by reference to Exhibit 4.1.2 to Registrant&rsquo;s Form S-3 Registration Statement No. 333-64840 dated June 22, 1993)</font></p>
                    </td>

                    <td align="left" width="0%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" width="0%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr bgcolor="#ffffff">
                    <td align="left" width="0%">
                    </td>

                    <td align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td align="right">
                    </td>

                    <td valign="top" align="right">
                    </td>

                    <td align="left">
                    </td>

                    <td>&nbsp;</td>

                    <td align="left" width="0%">
                    </td>

                    <td align="left" width="0%">
                    </td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left" width="0%">
                    </td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td valign="top" align="right"><font face="Times New Roman, Times, serif" size="2">3.9</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td>
                        <p align="justify"><font face="Times New Roman, Times, serif" size="2">Certificate of Voting Powers, Designations, Preferences and Rights of Registrant&rsquo;s Series F Senior Convertible Preferred Stock dated December 31, 1997 (incorporated by reference to Exhibit 2.2.2 of Registrant&rsquo;s Form 10-KSB for the fiscal year ended December 31, 1997)</font></p>
                    </td>

                    <td align="left" width="0%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" width="0%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>
            </table>
            <br>
            <br>
        </blockquote>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">17</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" size="2">
        </div>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p dir="ltr" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="left">&nbsp;</p>
        </blockquote>

        <p style="MARGIN-TOP: 12pt; FONT-WEIGHT: bold; FONT-SIZE: 12pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0.2in; TEXT-TRANSFORM: uppercase; TEXT-INDENT: 0px; FONT-VARIANT: small-caps; TEXT-DECORATION: underline" align="center"></p>

        <blockquote>
            <table cellspacing="0" cellpadding="0" width="95%" border="0">
                <tr>
                    <td align="left" width="4">
                    </td>

                    <td align="left" colspan="5">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font size="2"><b>Exhibit</b> <b>Designation</b></font></p>
                    </td>

                    <td width="96%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font size="2"><b>Exhibit</b> <b>Description</b></font></p>
                    </td>

                    <td align="left" width="1%">
                    </td>

                    <td align="left" width="1%">
                    </td>
                </tr>

                <tr>
                    <td align="left" width="4">
                    </td>

                    <td align="left" width="1%">
                    </td>

                    <td align="left" width="1%">
                    </td>

                    <td align="right" width="1%">
                    </td>

                    <td valign="top" align="right" width="1%">
                    </td>

                    <td align="left" width="2%">
                    </td>

                    <td width="96%">&nbsp;</td>

                    <td align="left" width="1%">
                    </td>

                    <td align="left" width="1%">
                    </td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left" width="0%">
                    </td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td valign="top" align="right"><font face="Times New Roman, Times, serif" size="2">31.0</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td>
                        <p align="justify"><font face="Times New Roman, Times, serif" size="2">Certificate of Voting Powers, Designations, Preferences and Rights of Registrant&rsquo;s Series G Senior Non-Voting Convertible Preferred Stock dated December 31, 1997 (incorporated by reference to Exhibit 2.2.3 of Registrant&rsquo;s Form 10-KSB for the fiscal year ended December 31, 1997)</font></p>
                    </td>

                    <td align="left" width="0%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" width="0%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr bgcolor="#ffffff">
                    <td align="left" width="0%">
                    </td>

                    <td align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td align="right">
                    </td>

                    <td valign="top" align="right">
                    </td>

                    <td align="left">
                    </td>

                    <td>&nbsp;</td>

                    <td align="left" width="0%">
                    </td>

                    <td align="left" width="0%">
                    </td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left" width="0%">
                    </td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td valign="top" align="right"><font face="Times New Roman, Times, serif" size="2">31.1</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td>
                        <p align="justify"><font face="Times New Roman, Times, serif" size="2">Certificate of Designations dated October 12, 2004 as filed with the Secretary of State of Nevada on October 13, 2004 (incorporated by reference to Exhibit 3.4 of Registrant&rsquo;s Current Report on Form 8-K for event occurring October 12, 2004)</font></p>
                    </td>

                    <td align="left" width="0%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" width="0%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr bgcolor="#ffffff">
                    <td align="left" width="0%">
                    </td>

                    <td align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td align="right">
                    </td>

                    <td valign="top" align="right">
                    </td>

                    <td align="left">
                    </td>

                    <td>&nbsp;</td>

                    <td align="left" width="0%">
                    </td>

                    <td align="left" width="0%">
                    </td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left" width="0%">
                    </td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td valign="top" align="right"><font face="Times New Roman, Times, serif" size="2">31.2</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td>
                        <p align="justify"><font face="Times New Roman, Times, serif" size="2">Certificate of Amendment to Articles of Incorporation effective February 8, 2005 (incorporated by reference to Exhibit 3.5 of Registrant&rsquo;s Current Report on Form 8-K for event occurring February 8, 2005)</font></p>
                    </td>

                    <td align="left" width="0%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" width="0%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr bgcolor="#ffffff">
                    <td align="left" width="0%">
                    </td>

                    <td align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td align="right">
                    </td>

                    <td valign="top" align="right">
                    </td>

                    <td align="left">
                    </td>

                    <td>&nbsp;</td>

                    <td align="left" width="0%">
                    </td>

                    <td align="left" width="0%">
                    </td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left" width="0%">
                    </td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td valign="top" align="right"><font face="Times New Roman, Times, serif" size="2">31.3</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td>
                        <p align="justify"><font face="Times New Roman, Times, serif" size="2">Certificate of Amendment to Articles of Incorporation effective March 21, 2007 (incorporated by reference to Exhibit 3.13 of Registrant&rsquo;s Current Report on Form 8-K for event occurring March 21, 2005)</font></p>
                    </td>

                    <td align="left" width="0%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" width="0%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr bgcolor="#ffffff">
                    <td align="left" width="0%">
                    </td>

                    <td align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td align="right">
                    </td>

                    <td valign="top" align="right">
                    </td>

                    <td align="left">
                    </td>

                    <td align="left">&nbsp;</td>

                    <td align="left" width="0%">
                    </td>

                    <td align="left" width="0%">
                    </td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left" width="0%">
                    </td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td valign="top" align="right"><font face="Times New Roman, Times, serif" size="2">31.1*</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">Certification pursuant to Rule 13a-14 and 15d-14 under the Securities Exchange Act of 1934, as amended, of Principal Executive Officer and Chief Financial Officer</font></td>

                    <td align="left" width="0%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" width="0%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr bgcolor="#ffffff">
                    <td align="left" width="0%">
                    </td>

                    <td align="left">
                    </td>

                    <td align="left">
                    </td>

                    <td align="right">
                    </td>

                    <td valign="top" align="right">
                    </td>

                    <td align="left">
                    </td>

                    <td>&nbsp;</td>

                    <td align="left" width="0%">
                    </td>

                    <td align="left" width="0%">
                    </td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left" width="0%">
                    </td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td valign="top" align="right"><font face="Times New Roman, Times, serif" size="2">32.1*</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td>
                        <p align="justify"><font face="Times New Roman, Times, serif" size="2">Certification of Principal Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350</font></p>
                    </td>

                    <td align="left" width="0%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" width="0%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr bgcolor="#ffffff">
                    <td align="left" width="0%">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left" colspan="5">&nbsp;</td>

                    <td>
                    </td>

                    <td align="left" width="0%">
                    </td>

                    <td align="left" width="0%">
                    </td>
                </tr>

                <tr>
                    <td align="left" width="0%">
                    </td>

                    <td align="left" colspan="6"><font size="2">*Filed herewith.</font></td>

                    <td align="left" width="0%">
                    </td>

                    <td align="left" width="0%">
                    </td>
                </tr>
            </table>
        </blockquote>
        <br>
        <br>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">18</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" size="2">
        </div>

        <p style="MARGIN-TOP: 12pt; FONT-WEIGHT: bold; FONT-SIZE: 12pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0.2in; TEXT-TRANSFORM: uppercase; TEXT-INDENT: 0px; FONT-VARIANT: small-caps; TEXT-DECORATION: underline" align="center"><b><u><a name="_Toc229905043">Signatures</a></u></b></p>

        <p></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Pursuant to the requirements of the Securities and Exchange Act of 1934, Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"></p>

            <table cellspacing="0" cellpadding="0" width="95%" border="0">
                <tr valign="bottom">
                    <td align="left" width="35%">
                    </td>

                    <td align="left" width="109"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" width="28"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" colspan="3"><font face="Times New Roman, Times, serif" size="2">New Concept Energy, Inc.&nbsp;&nbsp;</font></td>
                </tr>

                <tr>
                    <td align="left">&nbsp;</td>

                    <td align="left" width="109">
                    </td>

                    <td align="left" width="28">
                    </td>

                    <td align="left" colspan="3">
                    </td>
                </tr>

                <tr>
                    <td align="left">&nbsp;</td>

                    <td align="left" width="109">
                    </td>

                    <td align="left" width="28">
                    </td>

                    <td align="left" colspan="3">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">Date: November 13, 2009</font></td>

                    <td align="left" width="109"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="28">
                        <p align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;By:</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left" width="215"><font face="Times New Roman, Times, serif" size="2">/s/ Gene S. Bertcher</font></td>

                    <td align="left" width="217"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left">
                    </td>

                    <td align="left" width="109"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" width="28"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" colspan="3"><font face="Times New Roman, Times, serif" size="2">Gene S. Bertcher, Principal Executive&nbsp;&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left">
                    </td>

                    <td align="left" width="109"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" width="28"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" colspan="3"><font face="Times New Roman, Times, serif" size="2">Officer, President and Chief Financial&nbsp;&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left">
                    </td>

                    <td align="left" width="109"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" width="28"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" colspan="3"><font face="Times New Roman, Times, serif" size="2">Officer&nbsp;&nbsp;</font></td>
                </tr>
            </table>
            <br>
            <br>
        </blockquote>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
        <!-- PAGE BREAK  -->

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            <a name="PAGENUM"><font face="Times New Roman" size="2">19</font></a>
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            <hr width="100%" color="#000000" noshade size="2">
        </div>
    </body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>nce10qex311093009.htm
<TEXT>
<html>
    <head>
        <title></title>
        <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
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                <td width="50%"><a name="CERTS"><strong><font size="2">CERFITICATIONS</font></strong></a>&nbsp;</td>

                <td width="50%">
                    <p align="right"><strong><font size="2">EXHIBIT 31.1</font></strong></p>
                </td>
            </tr>
        </table>
        <br>
        <br>
        <br>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif" align="center"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b> <b>PRINCIPAL EXECUTIVE OFFICER AND</b> <b>CHIEF FINANCIAL OFFICER</b><b>&rsquo;</b><b>S<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RULE 13a-14(a)/15d-14(a) <a name="OLE_LINK1">CERTIFICATION</a></b></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">I, Gene S. Bertcher, certify that:</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this quarterly report on Form 10-Q of New Concept Energy, Inc.;</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made in light of the circumstances under which such statements were made, and is not misleading with respect to the period covered by this report;</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, the financial statements and other financial information included in this report fairly present, in all material respects, the financial condition, results of operations and cash flows of the Registrant as of and for the periods presented in this report;</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13-15(e) and 15(d)-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13o -15(f) and 15(d)-15(f)) for the Registrant and have:</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Designed such disclosure controls and procedures, or used such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly
            during the period in which this quarterly report is being prepared;</p>
        </blockquote>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in
            accordance with generally accepted accounting principals;</p>
        </blockquote>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Evaluated the effectiveness of the Registrant&rsquo;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the controls and procedures as of the end of the period covered by this report based on such evaluation; and</p>
        </blockquote>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disclosed in this report any change in the Registrant&rsquo;s internal control over financial reporting that occurred during the Registrant&rsquo;s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant&rsquo;s internal control over financial
            reporting.</p>
        </blockquote>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the Registrant&rsquo;s auditors and the audit committee of Registrant&rsquo;s board of directors (or persons performing the equivalent functions):</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant&rsquo;s ability to record, process, summarize and report financial information; and</p>
        </blockquote>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant&rsquo;s internal controls.</p>
        </blockquote>

        <p dir="ltr" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"></p>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="34%"><font face="Times New Roman" size="2">Dated: November 13, 2009</font></td>

                <td align="left" width="175"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="203"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="222"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left" width="175">
                </td>

                <td align="left" width="20">
                </td>

                <td align="left" width="203">
                </td>

                <td align="left" width="222">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left" width="175"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left" colspan="2"><font face="Times New Roman" size="2">&nbsp;/s/ Gene S. Bertcher</font></td>

                <td align="left" width="222"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left" width="175"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" colspan="2"><font face="Times New Roman" size="2">Gene S. Bertcher, Principal Executive&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left" width="175"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" colspan="2"><font face="Times New Roman" size="2">Officer, President and Chief Financial&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left" width="175"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" colspan="2"><font face="Times New Roman" size="2">Officer&nbsp;</font></td>
            </tr>
        </table>
        <br>
        <br>
    </body>
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<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>3
<FILENAME>nce10qex321093009.htm
<TEXT>
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        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>EXHIBIT 32.1</b></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif" align="center"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OFFICERS</b><b>&rsquo;</b> <b>SECTION 1350 CERTIFICATIONS</b></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">The undersigned officer of New Concept Energy, Inc., a Nevada corporation (the &ldquo;Company&rdquo;) hereby certifies that:</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&rsquo;s Quarterly Report on Form 10-Q for the period ended&nbsp;September 30, 2009 fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended; and</p>
        </blockquote>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">(ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information contained in the Company&rsquo;s Quarterly Report on Form 10-Q for the period ended June 30, 2009 fairly presents, in all material respects, the financial condition and results of operations of the Company, at and for the periods indicated.</p>
        </blockquote>

        <p dir="ltr" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"></p>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="34%"><font face="Times New Roman, Times, serif" size="2">Dated: November 13, 2009</font></td>

                <td align="left" width="175"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="203"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="222"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left" width="175">
                </td>

                <td align="left" width="20">
                </td>

                <td align="left" width="203">
                </td>

                <td align="left" width="222">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left" width="175"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left" colspan="2"><font face="Times New Roman" size="2">&nbsp;/s/ Gene S. Bertcher</font></td>

                <td align="left" width="222"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left" width="175"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" colspan="2"><font face="Times New Roman" size="2">Gene S. Bertcher, Principal Executive&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left" width="175"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" colspan="2"><font face="Times New Roman" size="2">Officer, President and Chief Financial&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left" width="175"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" colspan="2"><font face="Times New Roman" size="2">Officer&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>
        </table>
        <br>
        <br>
        <br>
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