Company: CRCE
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001096906-25-000799
Chunk: 5

Company: Circle Energy, Inc./NV
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 5
---
 incurred under the operating agreement.  Aspen is a ten-year-old oil and gas exploration company with the majority of its projects located in Texas.  During its operating history, Aspen has owned over 70 oil and gas producing wells.

Subsequent to March 31, 2025, the Company has entered into a new Farmout Agreement and Conditional Lease Assignment dated May 5, 2025 and a new joint venture agreement with Boa Vista, LLC that is identical to the prior agreements with Aspen with a new three-year term on the Farmout agreement.  Aspen transferred their ownership and rights to Boa Vista, LLC. effective December 2, 2024.  

Management intends to lease additional acreage within the area of mutual interest.  Towards this end, we have engaged a petroleum engineer to prioritize the acreage for leasing and have engaged a landman to execute our leasing efforts.  Once we have identified and acquired the specific acreage for development and evaluated our best options to develop it, we will be able to determine whether to utilize vertical or horizontal drilling.  This will be determined based on the amount and configuration of any additional acquired acreage.  

If we are unsuccessful in adding additional acreage, we intend to commence development or our existing property via vertical drilling, beginning with the two wells required under our current lease.  We estimate that drilling and completing these wells would cost approximately $750,000 per well.  If the results of the initial well are successful, we would commence drilling of the second well at a similar cost and timeframe. We intend to seek joint venture opportunities to fund the drilling of these wells.  We anticipate that any wells drilled on the existing lease would produce primarily oil.

Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements, and it is not anticipated that the Company will enter into any off-balance sheet arrangements.