Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 71

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 1
Chunk 71
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 in the newly acquired Saskatchewan property, plus two workovers. We expect to add the reserve value of such fields to our reserve report after a further period of observation
and review of the oil production; once this has been determined, we will estimate the necessary depreciation, depletion and amortization
(“DD&A”) for such wells.

34

Proved
and unproved oil and natural gas properties

Unproved
oil and natural gas properties have unproved lease acquisition costs, which are capitalized until the lease expires or otherwise until
we specifically identify a lease that will revert to the lessor, at which time we charge the associated unproved lease acquisition costs
to exploration costs.

Unproved
oil and natural gas properties are not subject to amortization and are assessed periodically for impairment on a property-by-property
basis based on remaining lease terms, drilling results or future plans to develop acreage. As of April 30, 2025 and October 31, 2024, such oil and gas properties were classified as unproved properties
and were not subject to depreciation, depletion and amortization.

Proved
oil and natural gas properties include developed and undeveloped reserves that have been confirmed through drilling and production activities.
These properties are subject to DD&A, which is calculated using the unit-of-production method based on total proved reserves.

    ●
    Proved
    developed reserves are amortized over the expected production life of the wells.

    ●
    Proved
    undeveloped reserves remain capitalized until development activities commence.

    ●
    The
    Company assesses impairment of proved properties periodically based on commodity prices, production forecasts, and reserve estimates.

As
of April 30, 2025, we have proved reserves in the newly acquired Saskatchewan properties and expect to add the reserves values of such
fields to our reserve report; once this has been done, we will estimate the necessary DD&A for such wells.

Impairment
of Other Long-lived Assets

We
review the carrying value of our long-lived assets annually or whenever events or changes in circumstances indicate that the historical
cost-carrying value of an asset may no longer be appropriate. We assess the recoverability of the carrying value of the asset by estimating
the future net undiscounted cash flows expected to result from the asset, including eventual disposition. If the future net undiscounted
cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset’s
carrying value and