Yuma Energy, Inc. Announces 2017 Financial Results

HOUSTON, April 2, 2018

Year End 2017 Highlights

• Yuma spud its first San Andres horizontal well in December 2017 and completed it during the first quarter of 2018.  All of the associated facilities have been installed and the well is currently in the early stages of production, recovering frac fluids and dewatering the near wellbore area.
• Net average production for the year ended December 31, 2017 was 2,454 Boe/d, or 34.8% higher than the net average production for the prior year of 1,820 Boe/d.
• Yuma reduced its debt by $11.8 million during 2017, bringing its bank debt down to $27.7 million.
• Yuma closed its common stock offering of 10,100,000 shares of common stock in October 2017 (including 500,000 shares purchased pursuant to the underwriters' overallotment option) for gross proceeds of $10,100,000 before deducting underwriters' fees and offering expenses.

Management Comments

Sam L. Banks, CEO of Yuma Energy, Inc., commented, "We are looking forward to the results of our first San Andres horizontal well, and continuing to expand our position in the play.  During 2018, we intend to take advantage of the low-risk and low-cost growth opportunities within our existing inventory, continue the development and expansion of our San Andres play, and actively pursue acquisitions and mergers."

Oil and Natural Gas Reserves – SEC Prices

The table below summarizes the Company's estimated proved reserves at December 31, 2017, which were prepared in accordance with Securities and Exchange Commission ("SEC") guidelines by Netherland, Sewell & Associates, Inc. ("NSAI"), an independent petroleum engineering firm. In preparing its report, NSAI evaluated 100% of the Company's properties at December 31, 2017.

Proved reserves were calculated using prices equal to the twelve-month unweighted arithmetic average of the first-day-of-the-month prices for each of the preceding twelve months, which were $51.34 per Bbl West Texas Intermediate and $2.976 per MMBtu Henry Hub, for the year ended December 31, 2017. Adjustments were made for location and grade. The information in the following table does not give any effect to or reflect the Company's commodity derivatives.