Yuma Energy (YUMAQ) 10-Q 11 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 11, 2017
Document And Entity Information
Entity Registrant Name	Yuma Energy, Inc.
Entity Central Index Key	1,672,326
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		12,540,747
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,017

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
CURRENT ASSETS:
Cash and cash equivalents	$ 2,927,494	$ 3,625,686
Accounts receivable, net of allowance for doubtful accounts:
Trade	5,485,155	4,827,798
Officers and employees	60,461	68,014
Other	1,903,274	1,757,337
Commodity derivative instruments	478,242	0
Prepayments	757,111	1,063,418
Other deferred charges	309,789	284,305
Total current assets	11,921,526	11,626,558
OIL AND GAS PROPERTIES (full cost method):
Proved properties	490,389,144	488,723,905
Unproved properties - not subject to amortization	5,473,755	3,656,989
Subtotal	495,862,899	492,380,894
Less: accumulated depreciation, depletion and amortization	(413,471,472)	(410,440,433)
Net oil and gas properties	82,391,427	81,940,461
OTHER PROPERTY AND EQUIPMENT:
Land, buildings and improvements	1,600,000	1,600,000
Other property and equipment	7,034,591	7,136,530
Total	8,634,591	8,736,530
Less: accumulated depreciation and amortization	(5,436,568)	(5,349,145)
Net other property and equipment	3,198,023	3,387,385
OTHER ASSETS AND DEFERRED CHARGES:
Commodity derivative instruments	674,431	0
Deposits	467,592	467,306
Other noncurrent assets	486,326	517,201
Total other assets and deferred charges	1,628,349	984,507
TOTAL ASSETS	99,139,325	97,938,911
CURRENT LIABILITIES:
Current maturities of debt	344,315	599,341
Accounts payable, principally trade	11,375,720	11,009,631
Commodity derivative instruments	250,592	1,340,451
Asset retirement obligations	383,830	376,735
Other accrued liabilities	3,179,182	2,572,680
Total current liabilities	15,533,639	15,898,838
LONG-TERM DEBT	39,500,000	39,500,000
OTHER NONCURRENT LIABILITIES:
Asset retirement obligations	9,951,122	9,819,648
Commodity derivative instruments	0	1,215,551
Total other noncurrent liabilities	9,951,122	11,035,199
EQUITY:
Preferred stock Series D Convertible ($.001 par value, 7,000,000 authorized, 1,807,385 issued as of March 31, 2017 and 1,776,718 issued as of December 31, 2016)	1,808	1,777
Common stock ($.001 par value, 100 million shares authorized, 12,211,256 issued as of March 31, 2017 and 12,201,884 issued as of December 31, 2016)	12,211	12,202
Accumulated other comprehensive income (loss)	44,268,868	43,877,563
Treasury stock at cost (1,109 shares as of March 31, 2017 and -0- shares as of December 31, 2016)	(4,170)	0
Accumulated earnings (deficit)	(10,124,153)	(12,386,668)
Total equity	34,154,564	31,504,874
TOTAL LIABILITIES AND EQUITY	$ 99,139,325	$ 97,938,911

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Preferred Stock, Par Value	$ .001	$ .001
Preferred Stock, Authorized	7,000,000	7,000,000
Preferred Stock, Issued	1,807,385	1,776,718
Common Stock, Par Value	$ .001	$ 0.001
Common stock, Authorized	100,000,000	100,000,000
Common Stock, Issued	12,211,256	12,201,884
Treasury stock	1,109	0

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
REVENUES:
Sales of natural gas and crude oil	$ 7,144,424	$ 2,178,932
EXPENSES:
Lease operating and production costs	2,661,264	986,697
General and administrative - stock-based compensation	51,735	196,924
General and administrative - other	2,176,002	2,165,514
Depreciation, depletion and amortization	3,140,940	1,788,225
Asset retirement obligation accretion expense	138,569	52,059
Impairment of oil and gas properties	0	9,847,887
Gain on asset sales	(555,642)	0
Other	0	3,188
Total expenses	7,612,868	15,040,494
LOSS FROM OPERATIONS	(468,444)	(12,861,562)
OTHER INCOME (EXPENSE):
Net gains from commodity derivatives	3,556,783	456,314
Interest expense	(496,091)	(42,708)
Other, net	36,408	0
Total other income (expense)	3,097,100	413,606
INCOME (LOSS) BEFORE INCOME TAXES	2,628,656	(12,447,956)
Income tax expense	26,531	2,602
NET INCOME (LOSS)	2,602,125	(12,450,558)
PREFERRED STOCK:
Dividends paid in kind	339,610	320,279
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS	$ 2,262,515	$ (12,770,837)
INCOME (LOSS) PER COMMON SHARE:
Basic	$ 0.19	$ (1.71)
Diluted	$ 0.16	$ (1.71)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic	12,211,256	7,454,062
Diluted	14,056,170	7,454,062

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - 3 months ended Mar. 31, 2017 - USD ($)	PREFERRED STOCK	COMMON STOCK	PAID-IN-CAPITAL	TREASURY STOCK	ACCUMULATED DEFICIT	Total
Beginning Balance, Amount at Dec. 31, 2016	$ 1,777	$ 12,202	$ 43,877,563	$ 0	$ (12,386,668)	$ 31,504,874
Beginning Balance, Shares at Dec. 31, 2016	1,776,718	12,201,884
Net income					2,602,125	2,602,125
Payment of Series D dividends in kind, Amount	$ 31		339,579		(339,610)	0
Payment of Series D dividends in kind, Shares	30,667
Stock awards vested, Amount		$ 9	(9)
Stock awards vested, Shares		9,372
Amortization of stock-based compensation			51,735			51,735
Treasury stock - employee tax payment				(4,170)		(4,170)
Ending Balance, Amount at Mar. 31, 2017	$ 1,808	$ 12,211	$ 44,268,868	$ (4,170)	$ (10,124,153)	$ 34,154,564
Ending Balance, Shares at Mar. 31, 2017	1,807,385	12,211,256

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Reconciliation of net loss to net cash provided by (used in) operating activities
Net loss	$ 2,602,125	$ (12,450,558)
Depreciation, depletion and amortization of property and equipment	3,140,940	1,788,225
Impairment of oil and gas properties	0	9,847,887
Amortization of debt issuance costs	81,843	0
Net deferred income tax benefit	0	2,602
Stock-based compensation expense	51,735	196,924
Settlement of asset retirement obligations	0	(12,324)
Accretion of asset retirement obligation	138,569	52,059
Bad debt expense	0	3,188
Net gains from commodity derivatives	(3,556,783)	(456,314)
Gain on sales of fixed assets	(555,642)	0
Changes in current operating assets and liabilities:
(Increase) decrease in accounts receivable	(795,740)	1,445,512
Decrease in prepaids, deposits and other assets	306,021	232,729
Decrease in accounts payable and other current and non-current liabilities	(461,542)	(1,542,241)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	951,526	(892,311)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures on property and equipment	(2,053,826)	(4,663,114)
Proceeds from sale of oil and gas properties and other fixed assets	641,056	0
Derivative settlements	98,700	535,488
NET CASH USED IN INVESTING ACTIVITIES	(1,314,070)	(4,127,626)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings	0	4,000,000
Repayments of borrowings	(255,026)	0
Debt issuance costs	(76,452)	0
Treasury stock repurchases	(4,170)	0
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	(335,648)	4,000,000
NET DECREASE IN CASH AND CASH EQUIVALENTS	(698,192)	(1,019,937)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	3,625,686	4,064,094
CASH AND CASH EQUIVALENTS AT END OF PERIOD	2,927,494	3,044,157
Supplemental disclosure of cash flow information:
Interest payments (net of interest capitalized)	264,542	42,709
Income tax payments	0	0
Supplemental disclosure of significant non-cash activity:
(Increase) decrease in capital expenditures financed by accounts payable	$ (1,434,132)	$ (1,613,607)

1. ORGANIZATION AND BASIS OF PR

1. ORGANIZATION AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
1. ORGANIZATION AND BASIS OF PRESENTATION	Organization Yuma Energy, Inc., a Delaware corporation (“Yuma” and collectively with its subsidiaries, the “Company”), 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, the Permian Basin of west Texas and California. The Company has employed a 3-D seismic-based strategy to build an inventory of development and exploration prospects. The Company’s operations are currently focused on onshore properties located in southern Louisiana, southeastern Texas, and the Permian Basin of west Texas. In addition, the Company has non-operated positions in the East Texas Eagle Ford and Woodbine and the Bakken Shale in North Dakota, and operated positions in Kern and Santa Barbara Counties in California. On October 26, 2016, Yuma Energy, Inc., a California corporation (“Yuma California”), merged (the “Reincorporation Merger”) with and into Yuma. Pursuant to the Reincorporation Merger, Yuma California was reincorporated in Delaware as Yuma. Immediately thereafter, a wholly owned subsidiary of Yuma merged (the “Davis Merger”) with and into privately-held Davis Petroleum Acquisition Corp., a Delaware corporation (“Davis”). As a result of the Davis Merger, Davis became a wholly owned subsidiary of Yuma. Prior to the Reincorporation Merger, each share of Yuma California’s existing 9.25% Series A Cumulative Redeemable Preferred Stock (the “Yuma California Series A Preferred Stock”) was converted into 35 shares of common stock of Yuma California (“Yuma California Common Stock”). As a result of the closing of the Reincorporation Merger, each share of Yuma California Common Stock was converted into one-twentieth of one share (the “Reverse Stock Split”) of common stock of Yuma (the “common stock”). As a result of the Reverse Stock Split, Yuma issued an aggregate of approximately 4.75 million shares of its common stock. As a result of the Davis Merger, Yuma issued approximately 7.45 million shares of its common stock to the former stockholders of Davis’ common stock. Yuma also issued approximately 1.75 million shares of Series D Convertible Preferred Stock of Yuma (the “Series D Preferred Stock”) to existing Davis preferred stockholders. Upon completion of the Reincorporation Merger and the Davis Merger, there was an aggregate of approximately 12.2 million shares of common stock outstanding and 1.75 million shares of Series D Preferred Stock outstanding. At the closing of the Davis Merger, Davis appointed a majority of the board of directors of Yuma. Four out of the five members of Yuma’s board of directors prior to the closing of the Davis Merger continued to serve on the board of directors of Yuma, with one of those four directors having been appointed by Davis. Three additional directors were appointed by Davis. The Davis Merger was accounted for as a “reverse acquisition” and a recapitalization since the former common stockholders of Davis have control over the combined company through their post-merger 61.1% ownership of the common stock and majority representation on Yuma’s board of directors. The Davis Merger was accounted for as a business combination in accordance with ASC 805 Business Combinations (“ASC 805”). ASC 805, among other things, requires assets acquired and liabilities assumed to be measured at their acquisition date fair value. Although Yuma was the legal acquirer, Davis was the accounting acquirer. The historical financial statements are therefore those of Davis. Hence, the financial statements included in this report reflect (i) the historical results of Davis prior to the Davis Merger; (ii) the combined results of the Company following the Davis Merger; (iii) the acquired assets and liabilities of Davis at their historical cost; and (iv) the fair value of Yuma’s assets and liabilities as of the closing of the Davis Merger. Basis of Presentation The accompanying unaudited consolidated financial statements of the Company and its wholly owned subsidiaries have been prepared in accordance with Article 8-03 of Regulation S-X for interim financial statements required to be filed with the Securities and Exchange Commission (“SEC”). The information furnished herein reflects all adjustments that are, in the opinion of management, necessary for the fair presentation of the Company’s Consolidated Balance Sheets as of March 31, 2017, and December 31, 2016; the Consolidated Statements of Operations for the three months ended March 31, 2017 and 2016; the Consolidated Statements of Changes in Equity for the three months ended March 31, 2017; and the Consolidated Statements of Cash Flows for the three months ended March 31, 2017 and 2016. The Company’s balance sheet at December 31, 2016 is derived from the audited consolidated financial statements of the Company at that date. The preparation of financial statements in conformity with the generally accepted accounting principles of the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. For further information, see Note 2 in the Notes to Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. Interim period results are not necessarily indicative of results of operations or cash flows for the full year and accordingly, certain information normally included in financial statements and the accompanying notes prepared in accordance with GAAP has been condensed or omitted. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. The Company has evaluated events or transactions through the date of issuance of these unaudited consolidated financial statements.

2. CHANGES IN ACCOUNTING PRINCI

2. CHANGES IN ACCOUNTING PRINCIPLES	3 Months Ended
	Mar. 31, 2017
Changes In Accounting Principles
2. CHANGES IN ACCOUNTING PRINCIPLES	Not Yet Adopted In August 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which provides clarification on how certain cash receipts and cash payments are presented and classified on the statement of cash flows. This ASU is effective for annual and interim periods beginning after December 15, 2017 and is required to be adopted using a retrospective approach if practicable, with early adoption permitted. The Company does not expect the adoption of this ASU to have a material impact on its Consolidated Statements of Cash Flows. In February 2016, the FASB issued ASU 2016-02, “Leases,” a new lease standard requiring lessees to recognize lease assets and lease liabilities for most leases classified as operating leases under previous GAAP. The guidance is effective for fiscal years beginning after December 15, 2018 with early adoption permitted. The Company will be required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. The Company is currently evaluating the impact of adopting this standard on its Consolidated Financial Statements, but does believe that it will materially impact the Company’s consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” which changes certain guidance related to the recognition, measurement, presentation and disclosure of financial instruments. This update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is not permitted for the majority of the update, but is permitted for two of its provisions. The Company is evaluating the new guidance, but does not believe that it will materially impact the Company’s consolidated financial statement presentation. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” In March, April, and May of 2016, the FASB issued rules clarifying several aspects of the new revenue recognition standard. The new guidance is effective for fiscal years and interim periods beginning after December 15, 2017. This guidance outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods and services. The new standard also requires more detailed disclosures related to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company will not early adopt the standard although early adoption is permitted. The Company is currently evaluating whether to apply the retrospective approach or modified retrospective approach with the cumulative effect recognized as of the date of initial application. The Company is currently evaluating the impact the standard is expected to have on its consolidated financial statements by evaluating current revenue streams and evaluating contracts under the revised standards. Recently adopted The FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business,” which assists in determining whether a transaction should be accounted for as an acquisition or disposal of assets or as a business. This ASU provides a screen that when substantially all of the fair value of the gross assets acquired, or disposed of, are concentrated in a single identifiable asset, or a group of similar identifiable assets, the set will not be considered a business. If the screen is not met, a set must include an input and a substantive process that together significantly contribute to the ability to create an output to be considered a business. This ASU is effective for annual and interim periods beginning in 2018 and is required to be adopted using a prospective approach, with early adoption permitted for transactions not previously reported in issued financial statements. The Company adopted this ASU on January 1, 2017, and expects that the adoption of this ASU could have a material impact on future consolidated financial statements as goodwill would not be allocated to divestitures or recorded for acquisitions that are not considered to be businesses. The FASB issued ASU 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” The FASB issued ASU 2014-15, “Presentation of Financial Instruments – Going Concern,” which requires management of an entity to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued or available to be issued. This update is effective for annual periods ending after December 15, 2016. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

3. ASSET IMPAIRMENTS

3. ASSET IMPAIRMENTS	3 Months Ended
	Mar. 31, 2017
Asset Impairments
3. ASSET IMPAIRMENTS	The Company’s oil and natural gas properties are accounted for using the full cost method of accounting, under which all productive and nonproductive costs directly associated with property acquisition, exploration and development activities are capitalized. These capitalized costs (net of accumulated DD&A and deferred income taxes) of proved oil and natural gas properties are subject to a full cost ceiling limitation. The ceiling limits these costs to an amount equal to the present value, discounted at 10%, of estimated future net cash flows from estimated proved reserves less estimated future operating and development costs, abandonment costs (net of salvage value) and estimated related future income taxes. In accordance with SEC rules, prices used are the 12 month average prices, calculated as the unweighted arithmetic average of the first-day-of-the-month price for each month within the 12 month period prior to the end of the reporting period, unless prices are defined by contractual arrangements. Prices are adjusted for “basis” or location differentials. Prices are held constant over the life of the reserves. The Company’s first quarter of 2017 full cost ceiling calculation was prepared by using (i) $47.61 per barrel for oil, and (ii) $2.73 per MMBTU for natural gas as of March 31, 2017. If unamortized costs capitalized within the cost pool exceed the ceiling, the excess is charged to expense and separately disclosed during the period in which the excess occurs. Amounts thus required to be written off are not reinstated for any subsequent increase in the cost center ceiling. During the three month periods ended March 31, 2017 and 2016, the Company recorded full cost ceiling impairments after income taxes of $-0- and $9.8 million, respectively.

4. ASSET RETIREMENT OBLIGATIONS

4. ASSET RETIREMENT OBLIGATIONS	3 Months Ended
	Mar. 31, 2017
Asset Retirement Obligation Disclosure [Abstract]
4. ASSET RETIREMENT OBLIGATIONS	The Company has asset retirement obligations associated with the future plugging and abandonment of oil and natural gas properties and related facilities. The accretion of the asset retirement obligation is included in the Consolidated Statements of Operations. Revisions to the liability typically occur due to changes in the estimated abandonment costs, well economic lives and the discount rate. The following table summarizes the Company’s asset retirement obligation transactions recorded during the three months ended March 31, 2017 in accordance with the provisions of FASB ASC Topic 410, “Asset Retirement and Environmental Obligations” : Three Months Ended March 31, 2017 Asset retirement obligations at December 31, 2016 $ 10,196,383 Liabilities incurred - Liabilities settled - Liabilities sold - Accretion expense 138,569 Revisions in estimated cash flows - Asset retirement obligations at March 31, 2017 $ 10,334,952 Based on expected timing of settlements, $383,830 of the asset retirement obligation is classified as current at March 31, 2017.

5. FAIR VALUE MEASUREMENTS

5. FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
5. FAIR VALUE MEASUREMENTS	Certain financial instruments are reported at fair value on our Consolidated Balance Sheets. Under fair value measurement accounting guidance, fair value is defined as the amount that would be received from the sale of an asset or paid for the transfer of a liability in an orderly transaction between market participants, i.e., an exit price. To estimate an exit price, a three-level hierarchy is used. The fair value hierarchy prioritizes the inputs, which refer broadly to assumptions market participants would use in pricing an asset or a liability, into three levels. The Company uses a market valuation approach based on available inputs and the following methods and assumptions to measure the fair values of its assets and liabilities, which may or may not be observable in the market. Fair Value of Financial Instruments (other than Commodity Derivative Instruments, see below) – Derivatives Fair value measurements at March 31, 2017 Significant Quoted prices other Significant in active observable unobservable markets inputs inputs (Level 1) (Level 2) (Level 3) Total Assets: Commodity derivatives – oil $ - $ 1,264,880 $ - $ 1,264,880 Commodity derivatives – gas - (112,207 ) - $ (112,207 ) Total assets $ - $ 1,152,673 $ - $ 1,152,673 Liabilities: Commodity derivatives – oil $ - $ (68,532 ) $ - $ (68,532 ) Commodity derivatives – gas - 319,124 - $ 319,124 Total liabilities $ - $ 250,592 $ - $ 250,592 Fair value measurements at December 31, 2016 Significant Quoted prices other Significant in active observable unobservable markets inputs inputs (Level 1) (Level 2) (Level 3) Total Liabilities: Commodity derivatives – oil $ - $ 956,997 $ - $ 956,997 Commodity derivatives – gas - 1,599,005 - $ 1,599,005 Total liabilities $ - $ 2,556,002 $ - $ 2,556,002 Derivative instruments listed above include swaps and three-way collars (see Note 6 – Commodity Derivative Instruments). Debt Asset Retirement Obligations

6. COMMODITY DERIVATIVE INSTRUM

6. COMMODITY DERIVATIVE INSTRUMENTS	3 Months Ended
	Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
6. COMMODITY DERIVATIVE INSTRUMENTS	Objective and Strategies for Using Commodity Derivative Instruments Futures contracts and commodity price swap agreements are used to fix the price of expected future oil and natural gas sales at major industry trading locations such as Henry Hub, Louisiana for natural gas and Cushing, Oklahoma for oil. Basis swaps are used to fix or float the price differential between product prices at one market location versus another. Options are used to establish a floor price, a ceiling price, or a floor and ceiling price (collar) for expected future oil and natural gas sales. A three-way collar is a combination of three options: a sold call, a purchased put, and a sold put. The sold call establishes the maximum price that the Company will receive for the contracted commodity volumes. The purchased put establishes the minimum price that the Company will receive for the contracted volumes unless the market price for the commodity falls below the sold put strike price, at which point the minimum price equals the reference price (e.g., NYMEX) plus the excess of the purchased put strike price over the sold put strike price. While these instruments mitigate the cash flow risk of future reductions in commodity prices, they may also curtail benefits from future increases in commodity prices. The Company does not apply hedge accounting to any of its derivative instruments. As a result, gains and losses associated with derivative instruments are recognized currently in earnings. Counterparty Credit Risk Commodity derivative instruments open as of March 31, 2017 are provided below. Natural gas prices are New York Mercantile Exchange (“NYMEX”) Henry Hub prices, and crude oil prices are NYMEX West Texas Intermediate (“WTI”). 2017 2018 2019 Settlement Settlement Settlement NATURAL GAS (MMBtu): Swaps Volume 1,748,574 1,451,734 - Price $ 3.13 $ 3.00 - 3-way collars Volume 132,587 - - Ceiling sold price (call) $ 3.38 - - Floor purchased price (put) $ 3.02 - - Floor sold price (short put) $ 2.47 - - CRUDE OIL (Bbls): Swaps Volume 105,214 195,152 156,320 Price $ 52.24 $ 53.17 $ 53.77 3-way collars Volume 83,023 - - Ceiling sold price (call) $ 77.00 - - Floor purchased price (put) $ 60.00 - - Floor sold price (short put) $ 45.00 - - Derivatives for each commodity are netted on the Consolidated Balance Sheets. The following table presents the fair value and balance sheet location of each classification of commodity derivative contracts on a gross basis without regard to same-counterparty netting: Fair value as of March 31, 2017 December 31, 2016 Asset commodity derivatives: Current assets $ 896,651 $ 734,464 Noncurrent assets 678,470 54,380 1,575,121 788,844 Liability commodity derivatives: Current liabilities (669,000 ) (2,074,915 ) Noncurrent liabilities (4,040 ) (1,269,931 ) (673,040 ) (3,344,846 ) Total commodity derivative instruments $ 902,081 $ (2,556,002 ) Net gains (losses) from commodity derivatives on the Consolidated Statements of Operations are comprised of the following: Three Months Ended March 31, 2017 2016 Derivative settlements $ 98,700 $ 535,488 Mark to market on commodity derivatives 3,458,083 (79,174 ) Net gains (losses) from commodity derivatives $ 3,556,783 $ 456,314

7. PREFERRED STOCK

7. PREFERRED STOCK	3 Months Ended
	Mar. 31, 2017
Preferred stock [Abstract]
7. PREFERRED STOCK	The Company issued an aggregate of 1,754,179 shares of Series D Preferred Stock as part of the completion of the Davis Merger to former holders of Series A Preferred Stock, which is convertible into shares of the Company’s common stock. Each share of Series D Preferred Stock is convertible into a number of shares of common stock determined by dividing the original issue price, which was $11.0741176, by the conversion price, which is currently $11.0741176. The conversion price is subject to adjustment for stock splits, stock dividends, reclassification, and certain issuances of common stock for less than the conversion price. As of March 31, 2017, the Series D Preferred Stock had a liquidation preference of approximately $20.0 million and a conversion rate of $11.0741176 per share. The Series D Preferred Stock provides for cumulative dividends of 7.0% per annum, payable in-kind. The Company issued 30,667 shares of Series D Preferred Stock as in-kind dividends for the period from January 1, 2017 through March 31, 2017.

8. STOCK-BASED COMPENSATION

8. STOCK-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
8. STOCK-BASED COMPENSATION	2014 Long-Term Incentive Plan On October 26, 2016, the Company assumed the Yuma California 2014 Long-Term Incentive Plan (the “2014 Plan”), which was approved by the shareholders of Yuma California. The shareholders of Yuma California originally approved the 2014 Plan at the special meeting of shareholders on September 10, 2014 and the subsequent amendment to the 2014 Plan at the special meeting of shareholders on October 26, 2016. Under the 2014 Plan, Yuma may grant stock options, restricted stock awards (“RSAs”), restricted stock units (“RSUs”), stock appreciation rights (“SARs”), performance units, performance bonuses, stock awards and other incentive awards to employees of Yuma and its subsidiaries and affiliates. Yuma may also grant nonqualified stock options, RSAs, RSUs, SARs, performance units, stock awards and other incentive awards to any persons rendering consulting or advisory services and non-employee directors of Yuma and its subsidiaries, subject to the conditions set forth in the 2014 Plan. Generally, all classes of Yuma’s employees are eligible to participate in the 2014 Plan. The 2014 Plan provides that a maximum of 2,495,000 shares of common stock may be issued in conjunction with awards granted under the 2014 Plan. As of the closing of the Reincorporation Merger, there were awards for approximately 179,165 shares of common stock outstanding. Awards that are forfeited under the 2014 Plan will again be eligible for issuance as though the forfeited awards had never been issued. Similarly, awards settled in cash will not be counted against the shares authorized for issuance upon exercise of awards under the 2014 Plan. The 2014 Plan provides that a maximum of 1,000,000 shares of common stock may be issued in conjunction with incentive stock options granted under the 2014 Plan. The 2014 Plan also limits the aggregate number of shares of common stock that may be issued in conjunction with stock options and/or SARs to any eligible employee in any calendar year to 1,500,000 shares. The 2014 Plan also limits the aggregate number of shares of common stock that may be issued in conjunction with the grant of RSAs, RSUs, performance unit awards, stock awards and other incentive awards to any eligible employee in any calendar year to 700,000 shares. At March 31, 2017, 2,152,920 shares of the 2,495,000 shares of common stock originally authorized under active share-based compensation plans remained available for future issuance. The Company generally issues new shares to satisfy awards under employee share-based payment plans. The number of shares available is reduced by awards granted. The Company accounts for stock-based compensation in accordance with FASB ASC Topic 718, “Compensation – Stock Compensation”. Restricted Stock and Stock Appreciation Rights – Total share-based compensation expenses recognized for the three months ended March 31, 2017 and 2016 were $51,735 and $196,924, respectively, and are reflected in general and administrative expenses in the Consolidated Statements of Operations.

9. EARNINGS PER COMMON SHARE

9. EARNINGS PER COMMON SHARE	3 Months Ended
	Mar. 31, 2017
INCOME (LOSS) PER COMMON SHARE:
9. EARNINGS PER COMMON SHARE	Earnings per common share – Basic is calculated by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Earnings per common share – Diluted assumes the conversion of all potentially dilutive securities, and is calculated by dividing net income (loss) by the sum of the weighted average number of shares of common stock outstanding plus potentially dilutive securities. Earnings per common share – Diluted considers the impact of potentially dilutive securities except in periods where their inclusion would have an anti-dilutive effect. Equity, including the average number of shares of common stock and per share amounts, has been retroactively restated to reflect the Davis Merger. A reconciliation of earnings per common share is as follows: Three Months Ended March 31, 2017 2016 Net income (loss) attributable to common stockholders $ 2,262,515 $ (12,770,837 ) Weighted average common shares outstanding Basic 12,211,256 7,454,062 Add potentially dilutive securities: Unvested restricted stock awards 67,855 - Stock appreciation rights - - Stock options - - Series A preferred stock - - Series D preferred stock 1,777,059 - Diluted weighted average common shares outstanding 14,056,170 7,454,062 Net income (loss) per common share: Basic $ 0.19 $ (1.71 ) Diluted $ 0.16 $ (1.71 ) For the three months ended March 31, 2016, the Company excluded 235,646 shares of unvested RSAs, 337,452 stock options and 1,686,115 shares of Series A Preferred Stock in calculating diluted earnings per share, as the effect was anti-dilutive.

10. DEBT AND INTEREST EXPENSE

10. DEBT AND INTEREST EXPENSE	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
10. DEBT AND INTEREST EXPENSE	Long-term debt consisted of the following: March 31, December 31, 2017 2016 Senior credit facility $ 39,500,000 $ 39,500,000 Installment loan due 7/15/17 originating from the financing of insurance premiums at 4.38% interest rate 344,315 599,341 Total debt 39,844,315 40,099,341 Less: current maturities (344,315 ) (599,341 ) Total long-term debt $ 39,500,000 $ 39,500,000 Senior Credit Facility In connection with the closing of the Davis Merger, on October 26, 2016, Yuma and three of its subsidiaries, as the co-borrowers, entered into a credit agreement providing for a $75.0 million three-year senior secured revolving credit facility (the “Credit Agreement”) with SocGen, as administrative agent, SG Americas Securities, LLC (“SG Americas”), as lead arranger and bookrunner, and the Lenders signatory thereto (collectively with SocGen, the “Lender”). The initial borrowing base of the credit facility was $44.0 million, which was reaffirmed as of January 1, 2017. The borrowing base is subject to redetermination on April 1st and October 1st of each year, as well as special redeterminations described in the Credit Agreement. The April 2017 redetermination is still in process. The amounts borrowed under the Credit Agreement bear annual interest rates at either (a) the London Interbank Offered Rate (“LIBOR”) plus 3.00% to 4.00% or (b) the prime lending rate of SocGen plus 2.00% to 3.00%, depending on the amount borrowed under the credit facility and whether the loan is drawn in U.S. dollars or Euro dollars. The interest rate for the credit facility at March 31, 2017 was 4.54% and was based on LIBOR. Principal amounts outstanding under the credit facility are due and payable in full at maturity on October 26, 2019. All of the obligations under the Credit Agreement, and the guarantees of those obligations, are secured by substantially all of the Company’s assets. Additional payments due under the Credit Agreement include paying a commitment fee to the Lender in respect of the unutilized commitments thereunder. The commitment rate is 0.50% per year of the unutilized portion of the borrowing base in effect from time to time. The Company is also required to pay customary letter of credit fees. The Credit Agreement contains a number of covenants that, among other things, restrict, subject to certain exceptions, the Company’s ability to incur additional indebtedness, create liens on assets, make investments, enter into sale and leaseback transactions, pay dividends and distributions or repurchase its capital stock, engage in mergers or consolidations, sell certain assets, sell or discount any notes receivable or accounts receivable, and engage in certain transactions with affiliates. In addition, the Credit Agreement requires the Company to maintain the following financial covenants: a current ratio of not less than 1.0 to 1.0, a ratio of total debt to earnings before interest, taxes, depreciation, depletion, amortization and exploration expenses (“EBITDAX”) ratio of not greater than 3.5 to 1.0, a ratio of EBITDAX to interest expense for the four fiscal quarters ending on the last day of the fiscal quarter immediately preceding such date of determination to be less than 2.75 to 1.0, and cash and cash equivalent investments together with borrowing availability under the Credit Agreement of at least $3.0 million. For fiscal quarters ending prior to and not including the fiscal quarter ending December 31, 2017, EBITDAX will be calculated using an annualized EBITDAX and interest expense will be calculated using an annualized interest expense. Annualized EBITDAX is defined in the Credit Agreement as follows: (a) EBITDAX for the four-fiscal quarter period ending March 31, 2017 will be deemed to equal EBITDAX for the two-fiscal quarter period comprising the fiscal quarter ending December 31, 2016 and the fiscal quarter ending March 31, 2017, multiplied by two (2); and (b) EBITDAX for the four-fiscal quarter period ending June 30, 2017 will be deemed to equal EBITDAX for the three-fiscal quarter period comprising the fiscal quarter ending December 31, 2016, the fiscal quarter ending March 31, 2017 and the fiscal quarter ending June 30, 2017, multiplied by four-thirds (4/3). Annualized interest expense is defined in the Credit Agreement as follows: (a) interest expense for the four-fiscal quarter period ending on December 31, 2016 will be deemed to equal interest expense for such fiscal quarter multiplied by four (4); (b) interest expense for the four-fiscal quarter period ending March 31, 2017 will be deemed to equal interest expense for the two-fiscal quarter period comprising the fiscal quarter ending December 31, 2016 and the fiscal quarter ending March 31, 2017, multiplied by two (2); and (c) interest expense for the four-fiscal quarter period ending June 30, 2017 will be deemed to equal interest expense for the three-fiscal quarter period comprising the fiscal quarter ending December 31, 2016, the fiscal quarter ending March 31, 2017 and the fiscal quarter ending June 30, 2017, multiplied by four-thirds (4/3). The Credit Agreement contains customary affirmative covenants and defines events of default for credit facilities of this type, including failure to pay principal or interest, breach of covenants, breach of representations and warranties, insolvency, judgment default, and a change of control. Upon the occurrence and continuance of an event of default, the Lender has the right to accelerate repayment of the loans and exercise its remedies with respect to the collateral. As of March 31, 2017 and December 31, 2016, the Company was in compliance with the covenants under the Credit Agreement.

11. STOCKHOLDERS' EQUITY

11. STOCKHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2017
EQUITY:
11. STOCKHOLDERS' EQUITY	Yuma is authorized to issue up to 100,000,000 shares of common stock, $0.001 par value per share, and 20,000,000 shares of preferred stock, $0.001 par value per share. The holders of common stock are entitled to one vote for each share of common stock, except as otherwise required by law. The Company has designated 7,000,000 shares of preferred stock as Series D Preferred Stock. The Company assumed the 2014 Plan upon the completion of the Reincorporation Merger as described in Note 8 – Stock-Based Compensation, which describes outstanding stock options, RSAs and SARs granted under the 2014 Plan.

12. INCOME TAXES

12. INCOME TAXES	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
12. INCOME TAXES	The Company’s effective tax rate for the three months ended March 31, 2017 and 2016 was 1.01% and (.02%), respectively. The difference between the statutory federal income taxes calculated using a U.S. Federal statutory corporate income tax rate of 35% and the Company’s effective tax rate of 1.01% for the three months ended March 31, 2017 is related to the valuation allowance on the deferred tax assets and state income taxes. The difference between the statutory federal income taxes calculated using a U.S. Federal statutory corporate income tax rate of 35% and the Company’s effective tax rate of (.02%) for the three months ended March 31, 2016 is primarily related to the full valuation allowance against its Federal and Louisiana net deferred tax assets. As of March 31, 2017, the Company had federal and state net operating loss carryforwards of approximately $130.0 million which expire between 2022 and 2035. Of this amount, approximately $61.3 million is subject to limitation under Section 382 of the Internal Revenue Code of 1986, as amended, which could result in some amounts expiring prior to being utilized. Realization of a deferred tax asset is dependent, in part, on generating sufficient taxable income prior to expiration of the loss carryforwards. The Company provides for deferred income taxes on the difference between the tax basis of an asset or liability and its carrying amount in the financial statements in accordance FASB ASC Topic 740, “Income Taxes”. This difference will result in taxable income or deductions in future years when the reported amount of the asset or liability is recovered or settled, respectively. In recording deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred income tax asset will be realized. The ultimate realization of deferred income tax assets, if any, is dependent upon the generation of future taxable income during the periods in which those deferred income tax assets would be deductible. Based on the available evidence, the Company has recorded a full valuation allowance against its net deferred tax assets.

13. COMMITMENTS AND CONTINGENCI

13. COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
13. COMMITMENTS AND CONTINGENCIES	Joint Development Agreement On March 27, 2017, the Company entered into a Joint Development Agreement with Firethorn Petroleum, LLC and Carnes Natural Gas, Ltd., both unaffiliated entities, covering an area of approximately 52 square miles (33,280 acres) in Yoakum County, Texas. In connection with the agreement, the Company acquired an 87.5% interest in approximately 2,269 existing gross (1,985 net) leasehold acres. As the operator of the property covered by this agreement, the Company is committed to spend an additional $1.5 million. The Company intends to acquire additional leasehold acreage and begin drilling its first joint venture well in 2017. Certain Legal Proceedings From time to time, the Company is party to various legal proceedings arising in the ordinary course of business. While the outcome of lawsuits cannot be predicted with certainty, the Company is not currently a party to any proceeding that it believes, if determined in a manner adverse to the Company, could have a potential material adverse effect on its financial condition, results of operations, or cash flows. See Part II, Item 1 – “Legal Proceedings” below for further details.

14. SUBSEQUENT EVENTS

14. SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
14. SUBSEQUENT EVENTS	Yuma and its subsidiary, Pyramid Oil LLC have executed a Purchase, Sale, Settlement and Release Agreement with Texican Energy Corporation dated effective April 26, 2017. By virtue of said agreement, the Company has received $180,000 and conveyed its interest in all of the leasehold acreage, wells, and equipment in the Cat Canyon Prospect in Santa Barbara County, California, to Texican Energy Corporation. The Company retained the obligation to plug and abandon one well on the property and clean up its location pad area. See Part II, Item 1 – “Legal Proceedings” below for further details.

4. ASSET RETIREMENT OBLIGATIO21

4. ASSET RETIREMENT OBLIGATIONS (Tables)	3 Months Ended
	Mar. 31, 2017
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations	Three Months Ended March 31, 2017 Asset retirement obligations at December 31, 2016 $ 10,196,383 Liabilities incurred - Liabilities settled - Liabilities sold - Accretion expense 138,569 Revisions in estimated cash flows - Asset retirement obligations at March 31, 2017 $ 10,334,952

5. FAIR VALUE MEASUREMENTS (Tab

5. FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair value measurements by hierarchy	Fair value measurements at March 31, 2017 Significant Quoted prices other Significant in active observable unobservable markets inputs inputs (Level 1) (Level 2) (Level 3) Total Assets: Commodity derivatives – oil $ - $ 1,264,880 $ - $ 1,264,880 Commodity derivatives – gas - (112,207 ) - $ (112,207 ) Total assets $ - $ 1,152,673 $ - $ 1,152,673 Liabilities: Commodity derivatives – oil $ - $ (68,532 ) $ - $ (68,532 ) Commodity derivatives – gas - 319,124 - $ 319,124 Total liabilities $ - $ 250,592 $ - $ 250,592 Fair value measurements at December 31, 2016 Significant Quoted prices other Significant in active observable unobservable markets inputs inputs (Level 1) (Level 2) (Level 3) Total Liabilities: Commodity derivatives – oil $ - $ 956,997 $ - $ 956,997 Commodity derivatives – gas - 1,599,005 - $ 1,599,005 Total liabilities $ - $ 2,556,002 $ - $ 2,556,002

6. COMMODITY DERIVATIVE INSTR23

6. COMMODITY DERIVATIVE INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Commodity derivative instruments	2017 2018 2019 Settlement Settlement Settlement NATURAL GAS (MMBtu): Swaps Volume 1,748,574 1,451,734 - Price $ 3.13 $ 3.00 - 3-way collars Volume 132,587 - - Ceiling sold price (call) $ 3.38 - - Floor purchased price (put) $ 3.02 - - Floor sold price (short put) $ 2.47 - - CRUDE OIL (Bbls): Swaps Volume 105,214 195,152 156,320 Price $ 52.24 $ 53.17 $ 53.77 3-way collars Volume 83,023 - - Ceiling sold price (call) $ 77.00 - - Floor purchased price (put) $ 60.00 - - Floor sold price (short put) $ 45.00 - -
Schedule of derivative assets and liablities	Fair value as of March 31, 2017 December 31, 2016 Asset commodity derivatives: Current assets $ 896,651 $ 734,464 Noncurrent assets 678,470 54,380 1,575,121 788,844 Liability commodity derivatives: Current liabilities (669,000 ) (2,074,915 ) Noncurrent liabilities (4,040 ) (1,269,931 ) (673,040 ) (3,344,846 ) Total commodity derivative instruments $ 902,081 $ (2,556,002 )
Gains (losses) from commodity derivatives	Three Months Ended March 31, 2017 2016 Derivative settlements $ 98,700 $ 535,488 Mark to market on commodity derivatives 3,458,083 (79,174 ) Net gains (losses) from commodity derivatives $ 3,556,783 $ 456,314

9. EARNINGS (LOSS) PER COMMON S

9. EARNINGS (LOSS) PER COMMON SHARE (Tables)	3 Months Ended
	Mar. 31, 2017
INCOME (LOSS) PER COMMON SHARE:
Potentially dilutive securities	Three Months Ended March 31, 2017 2016 Net income (loss) attributable to common stockholders $ 2,262,515 $ (12,770,837 ) Weighted average common shares outstanding Basic 12,211,256 7,454,062 Add potentially dilutive securities: Unvested restricted stock awards 67,855 - Stock appreciation rights - - Stock options - - Series A preferred stock - - Series D preferred stock 1,777,059 - Diluted weighted average common shares outstanding 14,056,170 7,454,062 Net income (loss) per common share: Basic $ 0.19 $ (1.71 ) Diluted $ 0.16 $ (1.71 )

10. DEBT AND INTEREST EXPENSE (

10. DEBT AND INTEREST EXPENSE (Tables)	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Debt	March 31, December 31, 2017 2016 Senior credit facility $ 39,500,000 $ 39,500,000 Installment loan due 7/15/17 originating from the financing of insurance premiums at 4.38% interest rate 344,315 599,341 Total debt 39,844,315 40,099,341 Less: current maturities (344,315 ) (599,341 ) Total long-term debt $ 39,500,000 $ 39,500,000

3. ASSET IMPAIRMENTS (Details N

3. ASSET IMPAIRMENTS (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Asset Impairments Details Narrative
Oil and gas impairment	$ 0	$ 9,847,887

4. ASSET RETIREMENT OBLIGATIO27

4. ASSET RETIREMENT OBLIGATIONS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Asset Retirement Obligation Disclosure [Abstract]
Beginning of year balance	$ 10,196,383
Liabilities incurred during year	0
Liabilities settled during year	0
Liabilities sold during year	0
Accretion expense	138,569	$ 52,059
Revisions in estimated cash flows	0
End of year balance	$ 10,334,952

5. FAIR VALUE MEASUREMENTS (Det

5. FAIR VALUE MEASUREMENTS (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Total assets	$ 1,152,673
Total Liabilities	250,592	$ 2,556,002
Commodity derivatives - oil
Derivative Assets	1,264,880
Derivative liability	(68,532)	956,997
Commodity derivatives - gas
Derivative Assets	(112,207)
Derivative liability	319,124	1,599,005
Quoted prices in active markets (Level 1)
Total assets	0
Total Liabilities	0	0
Quoted prices in active markets (Level 1) | Commodity derivatives - oil
Derivative Assets	0
Derivative liability	0	0
Quoted prices in active markets (Level 1) | Commodity derivatives - gas
Derivative Assets	0
Derivative liability	0	0
Significant other observable inputs (Level 2)
Total assets	1,152,673
Total Liabilities	250,592	2,556,002
Significant other observable inputs (Level 2) | Commodity derivatives - oil
Derivative Assets	1,264,880
Derivative liability	(68,532)	956,997
Significant other observable inputs (Level 2) | Commodity derivatives - gas
Derivative Assets	(112,207)
Derivative liability	319,124	1,599,005
Significant unobservable inputs (Level 3)
Total assets	0
Total Liabilities	0	0
Significant unobservable inputs (Level 3) | Commodity derivatives - oil
Derivative Assets	0
Derivative liability	0	0
Significant unobservable inputs (Level 3) | Commodity derivatives - gas
Derivative Assets	0
Derivative liability	$ 0	$ 0

6. COMMODITY DERIVATIVE INSTR29

6. COMMODITY DERIVATIVE INSTRUMENTS (Details)	Dec. 31, 2019bblMMBbls$ / bbl$ / MMBTU	Dec. 31, 2018bblMMBbls$ / bbl$ / MMBTU	Dec. 31, 2017bblMMBbls$ / bbl$ / MMBTU
Swaps
Natural Gas (MMBtu):
Volume | MMBbls	0	1,451,734	1,748,574
Price(NYMEX) | $ / MMBTU	0	3	3.13
Crude Oil:
Volume | bbl	156,320	195,152	105,214
Floor Purchased Price (put) | $ / bbl	53.77	53.17	52.24
3-Way Collars
Natural Gas (MMBtu):
Volume | MMBbls	0	0	132,587
Ceiling sold price (call) | $ / MMBTU	0	0	3.38
Floor purchased price (put) | $ / MMBTU	0	0	3.02
Floor sold price (short put) | $ / MMBTU	0	0	2.47
Crude Oil:
Volume | bbl	0	0	83,023
Ceiling sold price (call) | $ / bbl	0	0	77
Floor purchased price (put) | $ / bbl	0	0	60
Floor sold price (short put) | $ / bbl	0	0	45

6. COMMODITY DERIVATIVE INSTR30

6. COMMODITY DERIVATIVE INSTRUMENTS (Details 1) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Asset commodity derivatives:
Current assets	$ 896,651	$ 734,464
Noncurrent assets	678,470	54,380
Total	1,575,121	788,844
Liability commodity derivatives:
Current liabilities	(669,000)	(2,074,915)
Noncurrent liabilities	(4,040)	(1,269,931)
Total	(673,040)	(3,344,846)
Total commodity derivative instruments	$ 902,081	$ (2,556,002)

6. COMMODITY DERIVATIVE INSTR31

6. COMMODITY DERIVATIVE INSTRUMENTS (Details 2) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
C. Commodity Derivative Instruments Details 1
Derivative settlements	$ 98,700	$ 535,488
Mark to market on commodity derivatives	3,458,083	(79,174)
Net gains (losses) from commodity derivatives	$ 3,556,783	$ 456,314

9. EARNINGS PER COMMON SHARE (D

9. EARNINGS PER COMMON SHARE (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
INCOME (LOSS) PER COMMON SHARE:
Net income (loss) attributable to common stockholders	$ 2,262,515	$ (12,770,837)
Net income (loss) per common share:
Basic	$ 0.19	$ (1.71)
Diluted	$ 0.16	$ (1.71)
Weighted average common shares outstanding
Basic	12,211,256	7,454,062
Add potentially dilutive securities
Unvested restricted stock awards	67,855	0
Stock appreciation rights	0	0
Stock options	0	0
Series A preferred stock	0	0
Series D preferred stock	1,777,059	0
Diluted weighted average common shares outstanding	14,056,170	7,454,062

10. DEBT AND INTEREST EXPENSE33

10. DEBT AND INTEREST EXPENSE (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Total Debt	$ 39,844,315	$ 40,099,341
Less: current maturities	(344,315)	(599,341)
Total long-term debt	39,500,000	39,500,000
Senior Credit Facility [Member]
Total Debt	39,500,000	39,500,000
Installment loan due July 15, 2017 [Member]
Total Debt	$ 344,315	$ 599,341