Company: TPET
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001493152-25-013189
Chunk: 75

Company: Trio Petroleum Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 1
Chunk 75
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 oil and/or natural gas properties to the extent associated with successful exploration
activities. Significant undeveloped leases are assessed individually for impairment, based on our current exploration plans, and a valuation
allowance is provided if impairment is indicated. Capitalized costs from successful exploration and development activities associated
with producing crude oil and/or natural gas leases, along with capitalized costs for support equipment and facilities, are amortized
to expense using the unit-of-production method based on proved crude oil and/or natural gas reserves on a field-by-field basis, as estimated
by qualified petroleum engineers.

As
of July 31, 2025, we had seven wells that are producing, all of which are located 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.

35

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 July 31, 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 July 31, 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