Circle Energy, Inc./NV (OTC: CRCE)

Circle Energy, Inc. is an exploration stage oil and natural gas company focused on acquiring and developing oil and natural gas properties in the Permian Basin region of Texas.

The firm holds a 75% working interest and a 55.5% net revenue interest in an 80 acre tract located in Andrews County, Texas.

It has not yet commenced drilling operations, has no producing wells or proved reserves, and is engaged in evaluating its leasehold, pursuing additional acreage acquisitions and seeking financing to drill and develop its properties.

Under a joint venture agreement the company also holds an interest in an approximately 880 acre area of mutual interest adjoining its current lease.

Circle Energy, Inc. currently does not generate revenue because it has not commenced production.

The company expects to generate future revenue from the sale of oil, natural gas and natural gas liquids produced from its properties once drilling and development activities are successful.

Revenues will depend on the volume of hydrocarbons extracted and prevailing market prices.

The oil and natural gas industry is highly competitive, particularly in the acquisition of leasehold acreage and access to capital.

Many of Circle Energy's competitors possess substantially greater financial and technical resources, which may place the company at a disadvantage when bidding for properties or securing drilling services.

The firm's limited capital resources and lack of operating history are key challenges.

To improve its position the company aims to expand its acreage base in the Permian Basin and to identify additional drilling opportunities that require further financing.

Because the company has not yet produced hydrocarbons, it does not have any current customers.

Upon commencing production Circle Energy, Inc. intends to sell its oil and natural gas to refiners, marketers and other downstream users in the energy sector.

No specific customer names are disclosed in the filing.