Company: TPET
Filing Date: 2025-03-14
Form Type: 10-Q
Source: 0001493152-25-010362
Chunk: 86

Company: Trio Petroleum Corp.
Filing Date: 2025-03-14
Form: 10-Q
Item: Part I, Item 8
Chunk 86
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 in the South Salinas
Project and the Company holds an 85.775% working interest. The Company provides funds to Trio LLC to develop and operate the assets in
the South Salinas Project; such funds are classified in the short-term asset/liability section of the balance sheet as Advance to Operators/Due
to Operators, respectively. As of January 31, 2025 and October 31, 2024, the balance of the Due to Operators account is $20,532 and $103,146,
respectively.

McCool
Ranch Oil Field Asset Purchase – Related Party

On
October 16, 2023, the Company entered into the McCool Ranch Purchase Agreement with Trio LLC for 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 (see Note 6); the Assets
are situated in what is known as the “Hangman Hollow Area” of the McCool Ranch Oil Field. The Company initially recorded
a payment of $100,000 upon execution of the McCool Ranch Purchase Agreement, at which time Trio LLC began refurbishment operations with
respect to the San Ardo WD-1 to determine if it was capable of reasonably serving the produced water needs for the assets. With refurbishment
successfully accomplished, the Company will pay an additional $400,000 per the McCool Ranch Purchase Agreement; to date, it has paid
approximately $344,000 during the year for restarting production operations on the assets and has a liability of approximately $56,000
to Trio LLC as a payable – related party on the balance sheet as of January 31, 2025.

Restricted
Stock Units (“RSUs”) issued to Directors

On
June 19, 2024, the Company agreed to award 50,000 restricted stock units to a newly appointed director under the Plan; as there were
only 22,750 shares remaining for issuance under the Plan at that time, 22,500 RSUs were awarded immediately with a fair value of $6.00
per share for a grant date value of $134,550, with the remainder issued in the following quarter at a fair value of $3.32 per share for
a grant date value of $91,300. For the three months ended January 31, 2025 and 2024, the Company recognized stock-based compensation
for these awards in the amount of $36,279 and $