Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 29

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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 work and services as provided in the APA.

See
Note 10 for additional information.

    13

NOTE
6 – RELATED PARTY TRANSACTIONS

South
Salinas Project – Related Party

Upon
its formation, the Company acquired from Trio LLC a majority working interest in the South Salinas Project and engaged the services of
certain members of Trio LLC to manage the Company’s assets (see Note 1 and Note 5). Trio LLC operates the South Salinas Project
on behalf of the Company, and as operator, conducts and has full control of the operations within the constraints of the Joint Operating
Agreement, and acts in the capacity of an independent contractor. Trio LLC currently holds a 3.8% working interest in the South Salinas
Project and the Company holds an 85.775% working interest. The Company provides funds to Trio LLC to develop and operate the assets in
the South Salinas Project; such funds are classified in the short-term asset/liability section of the balance sheet as Advance to Operators/Due
to Operators, respectively. As of April 30, 2025 and October 31, 2024, the balance of the Due to Operators account is $70,492 and $103,146,
respectively.

McCool
Ranch Oil Field Asset Purchase – Related Party

On
October 16, 2023, the Company entered into the 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 (see Note 5); the Assets
were situated in what is known as the “Hangman Hollow Area” of the McCool Ranch Oil Field. 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 to determine if it was capable of reasonably serving the produced water needs for the assets. Following
successful refurbishment, the Company committed to an additional $400,000 payment under the agreement.

On May 27, 2025, the Company made the decision to abandon the McCool Ranch
Oil Field leases. Because the conditions leading to this decision existed as of April 30, 2025, this event qualifies as a recognized subsequent
event under ASC 855-10-25-1 and has been reflected in the financial statements for the period