Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 319

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 1
Chunk 319
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On
November 10, 2023, we entered into a leasehold acquisition and development option agreement (“ARLO Agreement”) with Heavy
Sweet Oil, LLC (“HSO”) for a term of nine months, which gives the Company 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 by us, 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 the Company.

37

On
December 29, 2023, we entered into an amendment to the ARLO Agreement, whereby we funded $200,000 of the $500,000 payable by us 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. During the quarterly
period ended April 30, 2024, we announced the commencement of drilling activities at Asphalt Ridge and two wells (the HSO 8-4 and the
HSO 2-4) were spud during May 2024; a third well is planned to be drilled in the third calendar quarter of 2024.

We
have until February 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; if this option is not exercised on or before such date, we will forfeit any further right
to acquire this additional 17.75% working interest in the initial 960 acres. As of October 31, 2024, we have paid a total of $225,000
to HSO in costs related to infrastructure and have 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 October 31, 2024.

Emerging
Growth Company Status

We
are an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the JOBS Act, and it may
take advantage of certain exemptions from various reporting requirements that are applicable to