Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 103

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 8
Chunk 103
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 approximately 800 gross and net acres. As of April 30, 2025, the Company made the decision to abandon all
McCool Ranch leases. Accordingly, these leases have been written off and have been expensed on the statement of operations as of April
30, 2025. No further rental payments or development activities will be pursued.

On
November 10, 2023, the Company 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 it.

On
December 29, 2023, the Company entered into an amendment to the ARLO Agreement, whereby the Company funded $200,000 of the $500,000 payable
by it 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 April 30, 2025, the Company had 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 April 30, 2025.

    16

Per
the most recent amendment to the ARLO Agreement signed in April 2025, the Company had until May 10, 2025 to pay HSO an additional $1,775,000
to exercise an option for the remaining 17.75% working interest in the initial 960 acres of the Asphalt Ridge Leases. The option expired after the reporting period on May 10, 2025 due to the
Company’s failure to exercise it before the expiration date. As a result, the Company forfeited any further right
to acquire the additional 17.75% working interest but will retain its existing 2.25% interest in the leases.

Proved
Property Leases

In
April 2025, the Company acquired oil and gas lease rights