Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 887

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 3
Chunk 887
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 Acquisition and Development Agreement (the “Amendment to the Asphalt Ridge Option Agreement”), pursuant to which
the Company and HSO amended the Asphalt Ridge Option Agreement to provide that, within three (3) business days of the effective date
of the Amendment to the Asphalt Ridge Option Agreement, the Company would fund $200,000 of the $2,000,000 total purchase price in advance
of HSO satisfying the closing conditions set forth in the Asphalt Ridge Option Agreement, in exchange for the Company receiving an immediate
2% interest in the initial 960 acres, which advanced funds would be used solely for the building of roads and related infrastructure
in furtherance of the development plan. In January 2024, the Company funded an additional $25,000 resulting in a 2.25% working interest
in the initial 960 acres.

35

The
Asphalt Ridge Project, according to J. Wallace Gwynn of Energy News, is estimated to be the largest measured tar sand resource in the
United States and is unique given its low wax and negligible sulfur content, which is expected to make the oil produced very desirable
for many industries, including shipping.

Asphalt
Ridge is a prominent, northwest-southeast trending topographic feature (i.e., a dipping slope called a hog’s back or cuesta) that
crops-out along the northeast flank of the Uinta Basin. The outcrop is comprised largely of Tertiary and Cretaceous age sandstones that
are locally highly saturated with heavy oil and/or tar. The oil-saturated sandstones extend into the shallow subsurface of the Uinta
Basin to the southwest, which is the site of the Asphalt Ridge Development Project, and where the sandstones are estimated in various
independent studies to contain billions of barrels of oil-in-place. The project leasehold comprises over 30,000 acres and trends northwest-southeast,
along the trend of Asphalt Ridge, over a distance of about 20 miles.

The
area has been underdeveloped for decades due, in large part, to lease ownership issues and the definition of heavy oil falling under
mining regulations in the State of Utah. These factors created conflict between surface rights and subsurface mineral rights and were
obstacles to developing the asset using proven advanced cyclic-steam production techniques. Necessary permits have now been secured that
should allow drilling to commence by our operating partner. HSO hopes to continue to work with the State of Utah to supplement prior
receipt of permits with other