Company: TPET
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001493152-25-013189
Chunk: 144

Company: Trio Petroleum Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 8
Chunk 144
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 in commodity
pricing and regional demand trends within California and Saskatchewan may affect future revenues.

NOTE
5 – OIL AND NATURAL GAS PROPERTIES

The
following tables summarize the Company’s oil and gas activities.

 SCHEDULE OF OIL AND NATURAL GAS PROPERTIES

    As of July 31, 2025  
    As of October 31, 2024 

    Oil and gas properties – not subject to amortization 
    $12,155,186  
    $11,119,119 
  
    Accumulated impairment 
     —  
     — 
  
    Oil and gas properties – not subject to amortization, net 
    $12,155,186  
    $11,119,119 

During
the three and nine months ended July 31, 2025, the Company incurred aggregated exploration costs of $(266) and $35,616, respectively.
The negative expense for the three-month period reflects the reversal of previously accrued exploration costs recorded in the prior quarter,
related to properties that were subsequently abandoned during the current fiscal year. During the three and nine months ended July 31,
2024, the Company incurred aggregated exploration costs of $8,054 and $132,871, respectively. These expenses primarily consisted of exploratory,
geological, and geophysical costs, and were expensed in the condensed consolidated statements of operations during the applicable periods.

For
capitalized costs, the Company incurred approximately $1.0 million and approximately $1.1 million for the nine months ended July 31,
2025 and 2024, respectively; these expenses were related to drilling exploratory wells and acquisition costs, both of which were capitalized
and are reflected in the balance of the oil and gas property as of July 31, 2025 and 2024, respectively.

Leases

South
Salinas Project

As
of July 31, 2025, the Company holds interests in various leases related to the unproved properties of the South Salinas Project (see
Note 7). Two of these leases are held with the same lessor:

    ●
    Lease
    1 – 8,417 acres; this lease was amended on May 27, 2022, to extend the then-active force majeure status for an uncontested
    twelve-month period, during which the Company was not required to demonstrate the existence of force majeure conditions. As consideration,
    the Company paid a one