Company: TPET
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001493152-25-013189
Chunk: 183

Company: Trio Petroleum Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 8
Chunk 183
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343 as compared to the prior period; revenues from the prior
period were from the sale of approximately 1,000 barrels of oil from our McCool Ranch field, which operations were terminated in May
2025. Current revenues are from the sale of approximately 4,000 barrels of oil from our recently acquired assets in the Lloydminster, Saskatchewan
region. 

Exploration
expenses

Under
the successful efforts method of accounting for crude oil and natural gas properties, exploration expenses consist primarily of exploratory,
geological and geophysical costs, delay rentals, and exploratory overhead, and are expensed as incurred. Exploration expenses decreased
by a negligible amount as compared to the prior year period due to a reduction in exploratory, geological, and geophysical costs incurred
during the period. The current period reflects a credit balance of $266, primarily due to the reversal of an accrued estimate recorded
in the prior quarter for exploration costs associated with the McCool Ranch property, which was formally terminated during the current
fiscal year.

General
and administrative expenses

General
and administrative expenses consist primarily of personnel expenses, including salaries, benefits and stock-based compensation expense
for employees and consultants in executive, finance and accounting, legal, operations support, information technology and human resource
functions. General and administrative expenses also include corporate facility costs including rent, utilities, depreciation, amortization
and maintenance, as well as legal fees related to intellectual property and corporate matters and fees for accounting and consulting
services.

General
and administrative expenses decreased for the three months ended July 31, 2025 by approximately $0.7 million as compared to the prior
period due to (i) a decrease in consulting fees of approximately $200,000, (ii) decreased legal fees of approximately $180,000, (iii)
a decrease in professional fees of approximately $70,000 and (iv) decreased salaries and wages of approximately $245,000, respectively.

Stock-based
compensation expense

We
record stock-based compensation expenses for costs associated with options and restricted shares granted in connection with the Plan,
as well as for shares issued as payment for services. Stock-based compensation expense decreased by approximately $0.1 million for the
three months ended July 31, 2025 due to the amortization of approximately 22,500 more options in the prior three month period than in
the current period.

Accretion
expense

We
have an ARO recorded that is associated with its oil and natural gas properties in