F. DEBT

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

F. DEBT

	September 30,			December 31,
	2014			2013
Variable rate revolving credit facility payable to Société Générale,
OneWest Bank, FSB, and View Point Bank, N.A., maturing
May 20, 2017, secured by oil and natural gas properties held by
Yuma Exploration and Production Company, Inc. and guaranteed
by The Yuma Companies, Inc.	$	24,965,000		$	31,215,000
Installment loan due February 28, 2015, originating from the
financing of insurance premiums at 3.65% interest rate.		565,166			178,027
		25,530,166			31,393,027
Less:  current portion		(565,166	)		(178,027	)
Total long-term debt	$	24,965,000		$	31,215,000

On February 13, 2013, the credit agreement was amended to bring SocGen in as a new participant and as a replacement for Union Bank N.A. (“Union”) as the Administrative Agent, and to remove Amegy from the syndication (although still remaining as the Company’s bank for operations).  The participation allocation became 68.75% for SocGen and 31.25% for Union.  The interest rate margins effective February 13, 2013, are as follows:

				LIBOR
Borrowing base utilization	Prime margin			margin
Utilization ≥ 90%		2.25	%		3.25	%
75% ≤ utilization < 90%		2.00	%		3.00	%
50% ≤ utilization < 75%		1.75	%		2.75	%
25% ≤ utilization < 50%		1.50	%		2.50	%
Utilization < 25%		1.25	%		2.25	%

On May 20, 2013, a third amendment to the credit agreement brought in OneWest Bank, FSB (“OneWest”) to replace Union with new participation equal for SocGen and OneWest at 50/50.  With the new amendment, the credit agreement matures on May 20, 2017.

On September 27, 2013, the Borrowing Base Redetermination Agreement and Assignment brought in View Point Bank, N.A. (“View Point”) as a third lender in the credit agreement.  Participating percentages at September 27, 2013 became 37.5% for SocGen, 37.5% for OneWest and 25% for View Point.

Effective April 22, 2014, Yuma Exploration and Production Company, Inc., a Delaware corporation and wholly owned subsidiary of the Company (“Exploration”), entered into the fourth amendment to the credit agreement, which among other things, provides for a borrowing base of $40 million, and an additional non-conforming borrowing base over and above the conforming base of $4.5 million (which expired October 15, 2014).  The unamortized Amegy and Union costs of $123,925 and $189,727 were written off immediately upon their exit from the syndicate.

The following summarizes interest expense for the three and nine month periods ended September 30, 2014 and 2013.

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
Credit facility	$	308,486		$	223,967		$	889,111		$	748,450
Credit facility commitment fees		19,133			14,140			47,209			39,053
Amortization and write offs of
credit facility loan costs		47,715			36,436			140,955			431,603
Insurance installment loan		4,955			6,222			9,244			12,789
Louisiana Mineral Board		-			32,383			-			32,383
Other interest charges		616			331			3,069			12,724
Capitalized interest		(266,500	)		(249,403	)		(767,908	)		(788,214	)
Total interest expense	$	114,405		$	64,076		$	321,680		$	488,788

The terms of the credit agreement require Exploration to meet a specific current ratio, interest coverage ratio, and a funded debt to EBITDA ratio.  In addition, the credit facility requires the guarantee of The Yuma Companies, Inc., a wholly owned subsidiary of the Company.  Exploration was in compliance with the loan covenants as of September 30, 2014.