Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 657

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 1C
Chunk 657
---
 the Company has the right to acquire up
to all 30% of the rights set forth in the LEC Option (or such lesser amount which LEC has not exercised), from HSO, for $3,000,000 cash.

61

The
exercise of the Asphalt Ridge Option is contingent, unless waived by the Company, upon the following: (a) HSO providing the Company the
statements of revenues and direct operating expenses for the prior two years for the asset and the unaudited stub period for 2023, through
the date of closing; (b) satisfactory due diligence review by the Company of HSO, the leases, the property and other information; (c)
the negotiating of a mutually-acceptable joint operations agreement or other development and operations agreement(s) as agreed by the
parties; and (d) HSO providing the Company an updated independent reserves report including proved undeveloped reserves (PUDs) and an
estimate of gross valuation and discounted net present values, and indicating best estimate original oil-in-place (OOIP) volumes and
gross (100%) contingent oil resources, as of a date no earlier than August 31, 2023, for discoveries located in Northwest Asphalt Ridge,
Uinta Basin, Utah.

The
Company previously exercised the Asphalt Ridge Option for a 2.25% working interest in the Asphalt Ridge Leases and has until February
10, 2025 to pay HSO an additional $1,775,000 to exercise an option for the remaining 17.75% working interest in the Asphalt Ridge Leases.
If this option is not exercised on or before such date, the option will expire and the Company will forfeit any further right to acquire
this additional 17.75% working interest.

Loan
from former Chief Executive Officer

On
March 26, 2024, the Company borrowed $125,000 from its former Chief Executive Officer, Michael L. Peterson (the “Peterson Loan”),
in connection with which the Company delivered to Mr. Peterson an Unsecured Subordinated Promissory Note in the principal amount of $125,000
(the “Peterson Note”). As additional consideration for the Peterson Loan, the Company accelerated the vesting of 50,000 shares
of restricted stock awarded to Mr. Peterson under the Company’s 2022 Equity Incentive Plan. The Company repaid the entire outstanding
principal balance of the Peterson Loan and all accrued interest thereon on November 26, 202