Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 326

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 1
Chunk 326
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 acres.

During
February and March of 2023, we entered into additional leases related to the unproved properties of the South Salinas Project with two
groups of lessors. The first group of leases covers 360 acres and has a term of 20 years; we are required to make rental payments of
$25/acre per year. We are currently in compliance with this requirement and have paid in advance the rental payment for the period February
2024 through February 2025. The second group of leases covers 307.75 acres and has a term of 20 years; we are required to make rental
payments of $30/acre per year. We are currently in compliance with this requirement and have paid in advance the rental payment for the
period from March 2024 through March 2025.

On
November 10, 2023, we entered into the ARLO Agreement with HSO for a term of nine months which allows us the exclusive right to acquire
up to a 20% interest in a 960 acre drilling and production program in the Asphalt Ridge leases for $2,000,000, which may be invested
in tranches, with an initial tranche closing for an amount no less than $500,000 and paid within seven days subsequent to HSO providing
certain required items to us.

On
December 29, 2023, we entered into an amendment to the ARLO Agreement, whereby we funded $200,000 of the $500,000 payable by us to HSO
at the Initial Closing, in advance of HSO satisfying certain required items for a 2% interest in the leases; such funds are to be used
by HSO solely for the building of roads and related infrastructure in furtherance of the development of the leases. As of October 31,
2024, we have paid a total of $225,000 to HSO in costs related to infrastructure and has obtained a 2.25% interest in the leases; such
costs are capitalized costs and are reflected in the balance of the oil and gas property as of October 31, 2024.

Board
of Directors Compensation

On
July 11, 2022, our Board of Directors approved compensation for each of the non-employee directors of the Company, which would be effective
upon the consummation of the IPO. Such compensation is structured as follows: an annual retainer of $50,000 cash plus an additional $10,000
for