Company: TPET
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001493152-25-013189
Chunk: 154

Company: Trio Petroleum Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 8
Chunk 154
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-3A well maintain the lease’s validity.

    ●
    Lease
    2 (160 acres): Held by delay rental, renewed every three years. The Company is required to pay $30 per acre annually until drilling
    commences. The delay rental payment for October 2024 through October 2025 has been paid in advance, and the Company remains in compliance.

In
February and March 2023, the Company entered into additional leases covering unproved properties in the South Salinas Project:

    ●
    Group
    1: Covers 360 acres with a 20-year term; annual rental payments of $25 per acre

    ●
    Group
    2: Covers 307.75 acres with a 20-year term; annual rental payments of $30 per acre

During
the second and third quarters of fiscal 2025, the Company strategically abandoned all additional leases in the South Salinas Project.
All associated exploration and development costs, including capitalized expenditures for equipment and facilities, were expensed in accordance
with applicable accounting standards. This decision followed a comprehensive evaluation of the leases’ economic viability, market
conditions, regulatory factors, and operational constraints.

McCool
Ranch Oil Field

The
Company previously held interests in two parcels of unproved leases in the McCool Ranch Oil Field:

    ●
    Parcel
    1: Ten leases totaling approximately 480 acres, held by delay rental payments

    ●
    Parcel
    2: One lease totaling approximately 320 acres, held by production

As
of the second quarter of 2025, the Company elected to terminate all McCool Ranch leases. These leases have been written off and expensed
in the statement of operations. No further rental payments or development activities will be pursued.

    17

Asphalt
Ridge Leases – ARLO Agreement

On
November 10, 2023, the Company entered into the ARLO Agreement with HSO, granting the exclusive right to acquire up to a 20% working
interest in a 960-acre drilling and production program in the Asphalt Ridge leases for $2,000,000. The agreement allowed for investment
in tranches, with an initial tranche of no less than $500,000 payable within seven days of HSO satisfying certain conditions.

On
December 29, 2023, the Company amended the ARLO Agreement and funded $200,000 of the initial $500,000 tranche in advance of H