Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 1451

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 7
Chunk 1451
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25,000 resulting in a 2.25% working interest
in the initial 960 acres.

35

The
Asphalt Ridge Project, according to J. Wallace Gwynn of Energy News, is estimated to be the largest measured tar sand resource in the
United States and is unique given its low wax and negligible sulfur content, which is expected to make the oil produced very desirable
for many industries, including shipping.

Asphalt
Ridge is a prominent, northwest-southeast trending topographic feature (i.e., a dipping slope called a hog’s back or cuesta) that
crops-out along the northeast flank of the Uinta Basin. The outcrop is comprised largely of Tertiary and Cretaceous age sandstones that
are locally highly saturated with heavy oil and/or tar. The oil-saturated sandstones extend into the shallow subsurface of the Uinta
Basin to the southwest, which is the site of the Asphalt Ridge Development Project, and where the sandstones are estimated in various
independent studies to contain billions of barrels of oil-in-place. The project leasehold comprises over 30,000 acres and trends northwest-southeast,
along the trend of Asphalt Ridge, over a distance of about 20 miles.

The
area has been underdeveloped for decades due, in large part, to lease ownership issues and the definition of heavy oil falling under
mining regulations in the State of Utah. These factors created conflict between surface rights and subsurface mineral rights and were
obstacles to developing the asset using proven advanced cyclic-steam production techniques. Necessary permits have now been secured that
should allow drilling to commence by our operating partner. HSO hopes to continue to work with the State of Utah to supplement prior
receipt of permits with other state incentives, including working with the State on an arrangement requiring only an 8% state royalty
in connection with this project.

An
early development phase contemplates the development of 240 acres with an estimated 119 wells in the Northwest Asphalt Ridge Area. The
plan is to develop the 240 acres using advanced cyclic-steam production techniques, including initial CO2 injection. This phase contemplates
seventeen 7-spot hexagonal well patterns on 2 ½ acre spacing (a 7-spot has a central steam/CO2 injection well that is surrounded
by six producing oil wells). Upgrades have been made to existing roads and well pads as part of this early development phase.

Two
oil-saturated Cretaceous sand