Company: CRCE
Filing Date: 2025-05-14
Form Type: 8-K
Source: 0001096906-25-000776
Chunk: 0

Company: Circle Energy, Inc./NV
Filing Date: 2025-05-14
Form: 8-K
Item: Item 1.01
Chunk 0
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Item 1.01 Entry into a Material Definitive Agreement

On May 5, 2025, Circle Energy, Inc. (the “ Company”) entered into a Farmout Agreement and Conditional Lease Assignment (the “ Farmout Agreement”) dated effective May 16, 2025, with Boa Vista, LLC, a New Mexico limited liability company (“ Boa Vista”). Furthermore, in conjunction with the Farmout Agreement, on May 5, 2025, the Company and Boa Vista entered into a Joint Venture Agreement (the “ JV Agreement”) (the Farmout Agreement and the JV Agreement, together, the “ New Agreements”).

The Company had previously entered into a farmout agreement and conditional lease assignment and a joint venture agreement on or about May 16, 2022 (the “ Previous Agreements”) with Aspen Energy Partners, LTD (“Aspen”). Recently Aspen transferred their ownership rights in the Previous Agreements to Boa Vista. As a result of that transfer, the Company and Boa Vista entered into the New Agreements. The New Agreements are on the same terms as the Previous Agreements. Consideration paid by the Company for the New Agreements consisted of $5,000.00 up front with a spudding payment of $30,000.00 due upon commencement of drilling the first well.

Under the terms of the Farmout Agreement the Company still has a 75% working interests, and 55.5% net revenue interest, in the C. W. Logsdon Lease, an 80-acre tract located in Andrews County, Texas. Boa Vista holds the remaining 25% working interest and a 18.5% net revenue interest. The Company is required to drill at least two wells, one on each 40-acre farmout tract, within three years or the rights under the lease to any undrilled tract or tracts will automatically revert to Boa Vista.

Under the terms of the JV Agreement, the Company and Boa Vista intend to mutually develop an area of mutual interest near the current lease. This area of mutual interest consists of approximately 880 acres including and adjoining the acquired acreage. If the parties are successful in acquiring the additional acreage, the parties would jointly own mineral rights in the same percentage of ownership as the current lease (75% the Company, 25% Boa Vista). The parties intend that the joint venture would use AAPL 610-19819 or AAPL 610-2015 or similar operating agreement