Circle Energy Reports Q1 2025 Financial Results with Net Loss and No Revenue

Circle Energy, Inc. reported its financial results for the first quarter of 2025, revealing a net loss of $24,273, which is slightly higher than the net loss of $24,051 recorded in the same period of 2024. The company continues to operate without generating any revenue, as it has no producing wells. General and administrative expenses increased marginally from $24,051 in Q1 2024 to $24,273 in Q1 2025, reflecting ongoing operational costs associated with legal and accounting services, as well as oil and gas lease acquisition costs.

As of March 31, 2025, Circle Energy's total assets amounted to $229,350, a decrease from $240,903 at the end of 2024. The decline in total assets is primarily attributed to a reduction in cash and cash equivalents, which fell to $184,371 from $192,024. Current liabilities increased significantly, with accounts payable rising to $15,197 from $2,477, indicating a shift in the company's short-term financial obligations. Stockholders' equity also decreased to $214,153 from $238,426, largely due to the accumulated deficit growing from $208,637 to $232,910.

In terms of strategic developments, Circle Energy has entered into a new Farmout Agreement and Conditional Lease Assignment with Boa Vista, LLC, effective May 5, 2025. This agreement follows the transfer of rights from Aspen Energy Partners, LTD. and includes a new three-year term for the farmout agreement. The company is focused on expanding its acreage position in Texas, where it currently holds a 75% working interest in an 80-acre oil and gas lease in Andrews County. Management is actively seeking additional acreage and has engaged a petroleum engineer and landman to facilitate these efforts.

Operationally, Circle Energy remains in its startup phase, with no production or revenue to date. The company has two plugged wells on its lease but plans to drill two new wells within three years to maintain its lease rights. Each well is estimated to cost approximately $750,000 to drill and complete. The company has indicated that it may seek joint venture opportunities to fund these drilling operations, as it anticipates needing additional capital to support its growth and development plans.

Looking ahead, Circle Energy's management believes it has sufficient cash resources to meet its material cash requirements for the next 12 months. However, the company will require further funding to commence extensive drilling operations or acquire additional oil and gas interests. Management is optimistic about securing necessary funding through industry partnerships or potential equity sales once its common stock begins trading. The company remains focused on its strategic goal of developing its existing lease and expanding its operational footprint in the Texas oil and gas market.