Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 135

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 8
Chunk 135
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of $30/acre per year. During the current reporting period, we made the strategic decision to abandon the additional oil and gas leases.
As a result, all associated costs related to exploration and development activities, including any capitalized costs for support equipment
and facilities, have been expensed in accordance with applicable accounting standards. This decision was based on a comprehensive evaluation
of the economic viability and future potential of the leases, considering market conditions, regulatory factors, and operational constraints.

We
hold 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 comprises one lease and approximately 320 acres, which is held by production.
The total leasehold comprises approximately 800 gross and net acres. As of April 30, 2025, we made the decision to abandon all McCool
Ranch leases. Accordingly, these leases have been written off and have been expensed on the statement of operations as of April 30, 2025.
No further rental payments or development activities will be pursued.

On
November 10, 2023, we entered into the ARLO Agreement with HSO for a term of nine months which allows us the exclusive right to acquire
up to a 20% interest in a 960 acre drilling and production program in the Asphalt Ridge leases for $2,000,000, which may be invested
in tranches, with an initial tranche closing for an amount no less than $500,000 and paid within seven days subsequent to HSO providing
certain required items to us.

On
December 29, 2023, we entered into an amendment to the ARLO Agreement, whereby we funded $200,000 of the $500,000 payable by us to HSO
at the Initial Closing, in advance of HSO satisfying certain required items for a 2% interest in the leases; such funds are to be used
by HSO solely for the building of roads and related infrastructure in furtherance of the development of the leases. As of April 30, 2025,
we have paid a total of $225,000 to HSO in costs related to infrastructure and have obtained a 2.25% interest in the leases; such costs
are capitalized costs and are reflected in the balance