Company: TPET
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001493152-25-013189
Chunk: 86

Company: Trio Petroleum Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 2
Chunk 86
---

generator, boiler, storage tanks, and various operational infrastructure. While initial production was restarted on February 22, 2024,
we have subsequently determined that under previously negotiated terms, natural gas prices and water disposal costs, particularly in California,
makes it cost prohibitive for the Company to employ cyclic-steam operations to increase production and will not be economically feasible
in the long run. On May 27, 2025, we executed a termination agreement with Trio LLC to end operations at the location and abandon all
related leases. Capitalized costs totaling $500,614 have been written off and expensed in the statement of operations for the period ended
April 30, 2025.

Asphalt Ridge
Option Agreement and the Lafayette Energy Leasehold Acquisition and Development Option Agreement

On November 10, 2023, TPET entered into a Leasehold Acquisition and Development
Option Agreement (the “Asphalt Ridge Option Agreement”) with Heavy Sweet Oil LLC (“HSO”). Pursuant to the Asphalt
Ridge Option Agreement, the Company acquired an option to purchase up to a 20% working interest in certain leases at a long-recognized,
major oil accumulation in northeastern Utah, including an initial 960 acres and a subsequent 1,920 acres, as well as a right-of-refusal
option on approximately 30,000 acres.

On December 29, 2023, the Company and HSO entered into an Amendment to
the Asphalt Ridge Option Agreement, under which the Company funded $200,000 in exchange for an immediate 2% working interest in the initial
960 acres. An additional $25,000 was funded in January 2024, increasing the Company’s working interest to 2.25%. While the Company
had the option to acquire an additional 17.75% working interest, it has decided not to exercise this option and will instead retain its
existing 2.25% working interest in the initial 960 acres.

27

Novacor
Asset Purchase Agreement 

As of April 4, 2025, we entered into
an Asset Purchase Agreement (the “Novacor APA”) with Trio Canada and Novacor Exploration Ltd., a corporation
incorporated under the Canada Business Corporations Act (“Novacor”), pursuant to which, subject to the terms and
conditions set forth in the Novacor APA, Trio Canada agreed to acquire certain assets of Novacor relating its oil and gas business,
including certain contracts, leases and permits for working interests