Company: TPET
Filing Date: 2025-02-05
Form Type: S-1/A
Source: 0001493152-25-005014
Chunk: 35

Company: Trio Petroleum Corp.
Filing Date: 2025-02-05
Form: S-1/A
Chunk 35
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 option to acquire up to an additional 17.75% working interest in an initial 960 acres of the Asphalt Ridge Leases, we could lose significant opportunity to participate with a greater working interest in the expected development of a substantial number of additional wells in such 960 acres, which could result in substantially less revenues receivable by us.

On November
10, 2023, we 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, we acquired an option to purchase up to
a 20% working interest in the Asphalt Ridge Leases. To date, we have exercised this option for a 2.25% working interest in an initial
960 acres of the Asphalt Ridge Leases. Under the Asphalt Ridge Option Agreement, as amended, we currently have an option until April
10, 2025, to acquire an additional 17.75% working interest in the 960 acres in consideration for payment of $1,775,000, or to acquire
any lesser amount of working interest at proportionately reduced cost (e.g., $100,000 payment to acquire 1% working interest). In the
event that we do not raise sufficient funds in this or other financings to use the net proceeds to make some or all of such payment,
or we otherwise choose not to exercise such option for any of the remaining 17.75% working interest, then we will retain only our current
2.25% working interest ownership in the original 960 acres, whereas we will retain options on an additional 1,920 acres and a right of
first refusal on an additional approximate 30,000 acres. While it is still too early to fully assess the potential reserves that we would
be losing by not exercising the option for the additional 17.75% working interest in the initial 960 acres, the loss of such opportunity
could be significant and could result in reducing our future revenue with a material adverse impact on our results of operations.

We have faced and may in the future face conflicts of interest in negotiations with related parties, including in negotiations with Lafayette Energy Corp and/or Trio LLC, entities which certain of our employees, officers and directors serve as employees, officers or directors, for example concerning assets where TPET and one of these entities have interests.

TPET and Lafayette Energy Corp (“LEC”) both have equity interests in the Asphalt Ridge Project, Utah. TPET and