Company: TPET
Filing Date: 2025-03-14
Form Type: 10-Q
Source: 0001493152-25-010362
Chunk: 83

Company: Trio Petroleum Corp.
Filing Date: 2025-03-14
Form: 10-Q
Item: Part I, Item 8
Chunk 83
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30/acre per year. The Company is currently in compliance
with this requirement and has paid in advance the delay rental payment for the period from October 2024 through October 2025.

During
February and March of 2023, the Company entered into additional leases related to the unproved properties of the South Salinas Project
with two groups of lessors. The first group of leases covers 360 acres and has a term of 20 years; the Company is required to make rental
payments of $25/acre per year. The Company is currently in compliance with this requirement and has paid in advance the rental payment
for the period February 2025 through February 2026. The second group of leases covers 307.75 acres and has a term of 20 years; the Company
is required to make rental payments of $30/acre per year. The Company is currently in compliance with this requirement and has paid in
advance the rental payment for the period from March 2025 through March 2026.

McCool
Ranch Oil Field

In
October 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; 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 capable of reasonably serving the
produced water needs for the assets. With refurbishment successfully accomplished, the Company will pay an additional $400,000 per the
McCool Ranch Purchase Agreement; it has paid approximately $344,000 to date for restarting production operations on the assets and has
recorded a liability of approximately $56,000 for the remainder as of the end of the period. These additional costs are capitalized costs
and are reflected in the balance of the oil and gas property as of January 31, 2025.

The
Company holds interests in various leases related to the unproved properties of the McCool Ranch Oil Field; these leases occur in two
parcels, “Parcel 1” and “Parcel 2”. Parcel 1 comprises ten leases and approximately 480 acres, which are held
by delay rental payments that are paid-up and current. Parcel 2