Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 507

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 1B
Chunk 507
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 not closed.

58

Under
the Fourth Amendment, we also agreed to start the process of pursuing and consummating additional lease acquisitions in the areas deemed
by the parties to be higher priority areas lying within and around the South Salinas Project Area. Such acquisitions were approved for
an aggregate purchase price not to exceed approximately $79,000.00. Some leases were acquired in February and March, 2023, as described
more-fully elsewhere hereunder.

Further
under the Fourth Amendment, we agreed to engage the services of a contractor to do road access work and dirt-moving work (estimated to
cost approximately $170,000.00) that was necessary before the commencement of drilling the HV-1 well. We also agreed to pay a deposit
(in an amount not to exceed $25,000) to secure a drilling rig to drill the HV-1 well, which was drilled in May, 2023. This deposit was
not required and was not paid.

Finally,
we agreed, retroactively commencing on May 1, 2022, to accrue a monthly consulting fee of $35,000.00, due and payable by the Company
to Trio LLC no later than two weeks following the closing date of Company’s IPO. This fee was intended to cover the work being
done for the Company by Trio LLC’s employees prior to the closing date of our IPO. This consulting fee was paid by TPET to Trio
LLC.

McCool
Ranch Oil Field Asset Purchase

In
October 2023, TPET entered into an agreement (“McCool Ranch Purchase Agreement”) with Trio LLC for purchase of a 21.918315%
working interest in the McCool Ranch Oil Field located in Monterey County near the Company’s flagship South Salinas Project. As
Trio LLC is partly owned and controlled by members of TPET’s management, this was a related party transaction, and the aforementioned
Trio Special Committee was involved in the evaluation and negotiation of the terms of the acquisition. TPET engaged KLSP to conduct a
comprehensive analysis and valuation of the asset, which in-progress, preliminary results were delivered to TPET and evaluated by the
Trio Special Committee. The Company initially recorded a payment of $100,000 upon execution of the McCool Ranch Purchase Agreement, at
which time Trio LLC began refurbishment operations with respect to the San Ardo WD-1 water disposal well (the “WD-1”) to
determine if it was mechanically capable of