Company: TPET
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001493152-25-013189
Chunk: 27

Company: Trio Petroleum Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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 been expensed in accordance with
applicable accounting standards. The total expense recognized in connection with this abandonment was $111,149 and is reflected in the
Company’s statement of operations for the year-to-date period.

McCool
Ranch Oil Field

In
October 2023, the Company entered into the McCool Ranch Purchase Agreement with Trio LLC for the purchase of a 21.918315% working interest
in the McCool Ranch Oil Field, located in Monterey County near the Company’s flagship South Salinas Project. The Company initially
recorded a payment of $100,000 upon execution of the agreement, at which time Trio LLC began refurbishment operations on the San Ardo
WD-1 water disposal well to assess its ability to serve the produced water needs for the assets.

On
May 27, 2025, the Company made the decision to terminate the McCool Ranch Oil Field leases; accordingly, all capitalized costs related
to the acquisition, refurbishment, and production restart—including costs for support equipment and facilities—totaling $500,614
have been written off and expensed in the statement of operations for the period ended July 31, 2025.

The
Company will not make any further payments under the McCool Ranch Purchase Agreement, and all previously recorded liabilities associated
with the project have been recognized as an expense. The Company no longer holds any interests in the McCool Ranch Oil Field, and the
abandonment decision will be reflected in the financial statements.

Optioned
Assets – Asphalt Ridge Leasehold Acquisition & Development Option Agreement

On
November 10, 2023, the Company entered into the ARLO Agreement with HSO for a term of nine months which gives the Company the exclusive
right to acquire up to a 20% interest in a 960 acre drilling and production program in the Asphalt Ridge leases for $2,000,000, which
may be invested in tranches by the Company, with an initial tranche closing for an amount no less than $500,000 and paid within seven
days subsequent to HSO providing certain required items to the Company.

On
December 29, 2023, the Company entered into an amendment to the ARLO Agreement, whereby the Company funded $200,000 of the $500,000 payable
by the Company to HSO at the Initial Closing, in advance of HSO satisfying certain required items for a 2% interest in the leases; such
funds are to be used by H