Company: CRCE
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001096906-25-000799
Chunk: 2

Company: Circle Energy, Inc./NV
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 2
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ization.  Further, we have no depreciable assets.  

General and administrative expenses. General and administrative expenses were $24,273 for three months ended March 31, 2025, as compared to $24,051 for the same period of 2024.  Similar costs were incurred during each of the periods.

Net loss. The Company had net loss of $24,273 for three months ended March 31, 2025, as compared to $24,051 for the same period of 2024.  The lack of change is the result of currently having no revenues and costs incurred being similar during each of the periods.

Liquidity and Capital Resources

Management believes it has on hand sufficient cash resources to meet its material cash requirements for the next 12 months but will require further funding or other arrangements to commence extensive drilling operations or acquire further oil and gas interests.  As discussed further below, management believes that through its resources and relationships, appropriate arrangements for required funding can be reasonably obtained.  Mr. Rochford, one of our founders, paid $240,000 for his founder’s shares in the Company.  In addition, we received $264,000 in gross proceeds from the sale of shares of our common stock in a non-public offering of the shares.  We have no capital commitments for expenditures, other than those existing under our current oil and gas lease.  We anticipate primarily utilizing these funds to increase our acreage position adjacent to our initial acreage position.  Any remaining funds would be used to cover the initial costs of drilling wells on the Company’s existing lease, to seek drilling partners for the costs of the wells, and to secure additional oil and gas properties.

Under our current oil and gas lease, we are required to drill two wells on the property within three years from the lease date.  If we fail to commence, drill or develop one or both of the wells within the three-year period, the undrilled tract or tracts will automatically revert to the lessor.

Before commencing development activity, management first intends to increase our acreage position adjacent to our initial acreage position.  Once this process is complete, we can determine how best to proceed, particularly as it relates 

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to whether we would drill vertically or horizontally.  The amount and configuration of the acreage will determine whether to implement vertical or horizontal drilling.

If the Company is not successful in adding additional acreage, we would proceed with