Company: CRCE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001096906-25-001824
Chunk: 13

Company: Circle Energy, Inc./NV
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 13
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 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 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 developing our initial acreage, beginning with the drilling of the two vertical wells as required by the current oil and gas lease.  Each of these wells would cost approximately $750,000 to drill and complete.  To fund this drilling, the Company would likely enter into agreements with industry partners who would provide funding in return for a portion of the working interest in the wells.  Management has not yet entered into any agreements but has had extended conversations with those industry partners regarding potential participation in the drilling.  These discussions have concluded with positive indications that they would wish to participate and so the required funding would be available.  In the alternative, management may seek funding through the sale of equity in the Company after the Common Stock commences trading, if ever.

Cash Flows. We had no cash inflows during either of the nine-month periods ended September 30, 2025 or 2024. During the nine months ended September 30, 2025, we had cash outflow of $42,973 from operating activities as compared to cash outflow from operations of $43,661 for the same period of 2024.  During the nine months ended September 30, 2025, we had cash outflow from investing activities of $5,000 with no similar expenditures during the same period of 2024.  As of September 30, 2025, we had cash on hand of $144,051 and working capital of $137,