Company: TPET
Filing Date: 2025-03-14
Form Type: 10-Q
Source: 0001493152-25-010362
Chunk: 47

Company: Trio Petroleum Corp.
Filing Date: 2025-03-14
Form: 10-Q
Item: Part I, Item 1
Chunk 47
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, we acquired an approximate 22% working interest
in and to certain oil and gas assets at the McCool Ranch Field, which is located in Monterey, County, California, just seven miles from
our flagship South Salinas Project. The assets are situated in what is known as the “Hangman Hollow Area” of the McCool Ranch
Field. The acquired property is a relatively new oil field (discovered in 2011) developed with six oil wells, one water-disposal well,
a steam generator, boiler, three 5,000 barrel tanks, a 250-barrel test tank, a water softener, two freshwater tanks, two soft water tanks,
in-field steam pipelines, oil pipelines and other facilities. The property is fully and properly permitted for oil and gas production,
cyclic-steam injection and water disposal. We are acquiring the working interest at McCool Ranch primarily through work commitment expenditures,
which are being allocated to restart production at the field and establish cash flow for us, with upside potential given the numerous
undrilled infill and development well locations. Oil production was restarted on February 22, 2024.

McCool Ranch operations have been successfully restarted, including the
restarting of oil production at the HH-1, 35X and 58X wells. The HH-1 well has a short horizontal completion in the Lombardi Oil Sand,
whereas the 35X and 58X wells are both vertical wells with similar oil columns in the Lombardi Oil Sand and with similar subsurface borehole
completions. The HH-1 well at McCool Ranch upon restart was initially producing cold (ie., without steam) about 47 barrels of oil per
day before settling down to 10 to 15 bopd combined with the 35X well. Both the HH-1 and 35X wells are currently idled along with the 58X
well. The Company is assessing whether to restart cyclic steam operations.

24

The
aforementioned initial three wells at McCool Ranch were each restarted and produced “cold” (i.e. without steam
injection), which allows for lower operating costs, with expectation that each would be produced cold as long as profitable. The
Company is assessing whether to transition each well from cold to cyclic-steam production, also known as “huff and
puff,” which is expected to significantly increase production. The wells at McCool Ranch historically have responded favorably
when cyclic-steam operations have been applied