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| 8-K - CURRENT REPORT - Yuma Energy, Inc. | yuma_8k.htm |
Exhibit 99.1
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NEWS
RELEASE
YUMA ENERGY, INC. PROVIDES INFORMATION REGARDING ITS RECENTLY
COMPLETED MERGER WITH DAVIS PETROLEUM ACQUISITION CORP. AND ITS
1-FOR-20 REVERSE STOCK SPLIT
HOUSTON,
TEXAS – November 1, 2016 – Yuma Energy, Inc. (NYSE MKT:
YUMA) (“Yuma”) announced today that upon consummation
of the transaction with Davis Petroleum Acquisition Corp.
(“Davis”) that was completed on October 26, 2016, Yuma
issued approximately 7,455,000 shares of its common stock to former
common stockholders of Davis and approximately 1,754,000 shares of
its newly created Series D Convertible Preferred Stock with a
conversion price of $11.074 per share and a liquidation preference
of approximately $19.4 million to former preferred stockholders of
Davis.
After
completion of Yuma’s reincorporation from California to
Delaware, conversion of its Series A Preferred Stock into common
stock, completion of its 1-for-20 reverse stock split, as well as
taking into account the newly issued shares of common stock to
Davis as a result of the transaction, Yuma currently has
approximately 12,201,000 shares of its common stock issued and
outstanding and approximately 1,754,000 shares of its Series D
Convertible Preferred Stock issued and outstanding with a
liquidation preference of $19.4 million.
In
connection with the Davis merger, on October 26, 2016, Yuma entered
into a Credit Agreement providing for a $75.0 million 3-year
revolving credit facility (the “Credit Agreement”) with
SG Americas Securities, LLC (“SG Americas”) as Lead
Arranger and Bookrunner, Société Générale S.A.
(“Société Générale”) as
Administrative Agent and the lenders party thereto. The Credit
Agreement replaces Yuma’s existing credit agreement. The
initial borrowing base of the credit facility is $44.0 million, and
is subject to redetermination as of January 1, 2017 as well as
April 1st and October 1st of each year. As of October 26, 2016,
Yuma had approximately $39.5 million outstanding under the Credit
Agreement. All of the obligations under the Credit Agreement, and
the guarantee of those obligations, are secured by substantially
all of the assets of Yuma and customary financial covenants have
been made.
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About Yuma Energy, Inc.
Yuma
Energy, Inc. is an independent Houston-based exploration and
production company focused on acquiring, developing and exploring
for conventional and unconventional oil and natural gas resources,
primarily in the U.S. Gulf Coast and California. Yuma has employed
a 3-D seismic-based strategy to build a multi-year inventory of
development and exploration prospects. Yuma’s operations are
currently focused on onshore properties located in central and
southern Louisiana, where it is targeting the Austin Chalk,
Tuscaloosa, Wilcox, Frio, Marg Tex and Hackberry formations. Its
recently acquired company-operated properties are conventional
fields located onshore in south Louisiana and the upper Texas Gulf
Coast, and the newly acquired non-operated properties include Eagle
Ford and Eaglebine properties in east Texas. In addition, Yuma has
a non-operated position in the Bakken Shale in North Dakota and
operated positions in Kern and Santa Barbara Counties in
California. Yuma’s common stock is traded on the NYSE MKT
under the trading symbol “YUMA.” For more information
about Yuma Energy, Inc., please visit Yuma’s website
at www.yumaenergyinc.com.
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”).
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 forward-looking statements include
statements about future operations, estimates of reserve and
production volumes, and the anticipated timing for closing the
proposed merger. Forward-looking statements are based on current
expectations and assumptions and analyses made by Yuma in light of
experience and perception of historical trends, current conditions
and expected future developments, as well as other factors
appropriate under the circumstances. However, whether actual
results and developments will conform with expectations is subject
to a number of risks and uncertainties, including but not limited
to: problems may arise in the integration of the operations of Yuma
and Davis; the risks of exploration and production segment of the
oil and gas industry (for example, operational risks in exploring
for, developing and producing crude oil and natural gas); risks and
uncertainties involving geology of oil and gas deposits; the
uncertainty of reserve estimates; revisions to reserve estimates as
a result of changes in commodity prices; the uncertainty of
estimates and projections relating to future production, costs and
expenses; potential delays or changes in plans with respect to
exploration or development projects or capital expenditures;
health, safety and environmental risks and risks related to
weather; declines in oil and gas prices; inability of management to
execute its plans to meet its goals, shortages of drilling
equipment, oil field personnel and services; unavailability of
gathering systems, pipelines and processing facilities; and the
possibility that government policies may change. Yuma’s
annual report on Form 10-K/A for the year ended December 31, 2015,
quarterly reports on Form 10-Q, recent current reports on Form 8-K,
and other Securities and Exchange Commission (“SEC”)
filings discuss some of the important risk factors identified that
may affect Yuma’s business, results of operations, and
financial condition. Yuma undertakes no obligation to revise or
update publicly any forward-looking statements, except as required
by law.
For
more information, please contact:
James
J. Jacobs
Treasurer
and Chief Financial Officer
Yuma
Energy, Inc.
1177
West Loop South, Suite 1825
Houston,
Texas 77027
Telephone:
(713) 968-7000
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