Circle Energy, Inc., incorporated in Nevada, focuses on the acquisition, exploration, and development of oil and natural gas properties primarily in Texas. As of September 30, 2024, the company reported total assets of $254.99 million, a decrease from $310.36 million as of December 31, 2023. Total current assets also declined to $220.49 million from $275.86 million during the same period. Cash and cash equivalents were $217.68 thousand, down from $261.34 thousand at year-end.

For the third quarter of 2024, Circle Energy recorded a net loss of $15.27 thousand, a slight improvement from a net loss of $16.31 thousand in Q3 2023. The net loss for the nine months ended September 30, 2024, was $51.37 thousand, compared to $62.04 thousand for the same period in 2023. The basic and diluted loss per share remained consistent at $(0.01) for Q3 2024 and $(0.01) for Q3 2023, while for the nine-month period, it improved to $(0.03) from $(0.04) year-over-year. The decrease in net loss is attributed to reduced general and administrative expenses, which were $15.27 thousand in Q3 2024 compared to $16.31 thousand in Q3 2023, and $51.37 thousand for the nine months ended September 30, 2024, down from $62.04 thousand in the prior year.

The company has not generated any revenue to date and is currently in its startup phase. It has acquired a 75% working interest in an 80-acre oil and gas lease in Andrews County, Texas, and entered into a joint venture agreement to explore further acquisitions and development in the area. Circle Energy is required to drill two wells within three years from the lease date, with each well estimated to cost approximately $750 thousand.

Management believes it has sufficient cash resources to meet material cash requirements for the next 12 months but will require additional funding for extensive drilling operations. The company raised $264 thousand in gross proceeds from a non-public offering of common stock, which will be used to increase its acreage position and cover initial drilling costs. As of September 30, 2024, the cumulative valuation allowance against deferred tax assets was $41.18 thousand, reflecting the company's lack of revenue and tax provisions.

Circle Energy continues to engage professionals to prioritize and execute leasing efforts for additional acreage, with plans to commence development of existing property through vertical drilling.