Exhibit
99.1
 YUMA ENERGY,
INC. |
|
|
NEWS
RELEASE
Yuma Energy, Inc. Provides Operational and Corporate
Update
2019 Second Quarter Financial Report Filed with the
SEC
HOUSTON, TX – (PR Newswire – August 19, 2019) –
Yuma Energy, Inc. (NYSE American: YUMA) (“Yuma” or
“Company,” “we” or “our”) today
provided an operational and corporate update and reported its 2019
second quarter financial results. During the second quarter, the
Company has taken significant steps to arrest the recent declines
of our daily production. Specifically, we successfully installed a
new jet pump on the Nettles 39-1 well, resulting in approximately
40 barrels a day of gross oil (bbl/d) or 15 bbl/d net production,
up from 10 bbl/d gross prior to the workover. We also repaired the
gravel pack on the State Lease 18194 well which has produced
approximately 140 bbl/d gross, or 60 bbl/d net, for the most recent
two weeks. Prior to the workover, the well was producing 90 bbl/d
gross. We continue to diligently review our operations and evaluate
opportunities to improve production where those activities result
in short payback periods.
The Company also continues to reduce its operating and general and
administrative costs and has significantly curtailed its planned
2019 capital expenditures. We plan to take further steps to
mitigate our limited liquidity, which may include, but are not
limited to, restructuring our existing debt; selling additional
assets; further reducing general and administrative expenses;
seeking merger and acquisition related opportunities and
potentially raising proceeds from capital markets transactions,
including the sale of debt or equity securities.
Discussions regarding the restructuring of the Company and its debt
are ongoing, and management is hopeful that an accord can be
reached. Management continues to work with Seaport Global
Securities LLC, an investment banking firm, which advises the
Company on its strategic alternatives and is engaged in various
discussions regarding its debt, potential acquisitions and other
initiatives generally considered part of the restructuring
process.
Quarterly Report Form 10-Q Filed
On August 16, 2019, Yuma filed its quarterly report on Form 10-Q
for the three months ended June 30, 2019 with the Securities and
Exchange Commission (“SEC”). Investors and stockholders
may obtain our Form 10-Q, Form 10-K and other documents filed with
the SEC free of charge at the SEC’s website,
www.sec.gov.
In addition, copies of our filings are available on our website
at www.yumaenergyinc.com.
Management Comments
Mr. Anthony C. Schnur, Interim Chief Executive Officer and Chief
Restructuring Officer stated, “We are pleased that the field
work conducted to date has increased our production at certain
wells and are high-grading additional activities to further improve
our production. On the restructuring front, while the process is
taking some time, we have been engaged in in various discussions.
However, a substantial risk exists that the Company will be unable
to reach agreements on key issues related to our outstanding
indebtedness which will continue to impair our ability to move the
Company forward. The Yuma team continues to work toward a workable
solution for all of the stakeholders of your
Company.”
Continuing Uncertainty
The Company’s audited consolidated financial statements for
the year ended December 31, 2018, included a going concern
qualification. The risk factors and uncertainties described in our
SEC filings for the year ended December 31, 2018, the quarter ended
March 31, 2019, and the quarter ended June 30, 2019, as well as
continuing events of default under our credit agreement, raise
substantial doubt about the Company's ability to continue as a
going concern basis of accounting.
Please refer to our recently filed Quarterly Report on Form 10-Q
for the three months ended June 30, 2019 and all our filings with
the SEC for further information.
About Yuma Energy, Inc.
Yuma Energy, Inc., a Delaware corporation, is an independent
Houston-based exploration and production company focused on
acquiring, developing and exploring for conventional and
unconventional oil and natural gas resources. Historically, the
Company’s activities have focused on inland and onshore
properties, primarily located in central and southern Louisiana and
southeastern Texas. Its common stock is listed on the NYSE American
under the trading symbol “YUMA.”
Forward-Looking Statements
This release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended (the
“Securities Act”), and Section 21E of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”).
Any and all statements that are not strictly historical statements
constitute forward-looking statements and may often, but not
always, be identified by the use of such words such as
“expects,” “believes,”
“intends,” “anticipates,”
“plans,” “estimates,”
“potential,” “possible,” or
“probable” or statements that certain actions, events
or results “may,” “will,”
“should,” or “could” be taken, occur or be
achieved. The Company’s annual report on Form 10-K for the
year ended December 31, 2018, quarterly reports on Form 10-Q.
recent current reports on Form 8-K, and other SEC filings discuss
some of the important risk factors identified that may affect its
business, results of operations, and financial condition. The
Company undertakes no obligation to revise or update publicly any
forward-looking statements, except as required by law.
For more information, please contact
Carol Coale
Managing Director
Dennard Lascar Investor Relations
713-529-6600