Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 793

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 2
Chunk 793
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, 2023, subsequent to the 120-day option window referenced above, TPET announced the signing of an Acquisition Agreement to potentially
acquire up to 100% of the working interest in the Union Avenue Field. The Agreement was between TPET and Trio LLC, with Trio LLC acting
on behalf of itself as Operator and holding a 20% working interest in Union Avenue Field as well as agreeing to act to help facilitate
the acquisition by TPET of the remaining 80% working interest. As Trio LLC is partly owned and controlled by members of Trio’s
management, this would have been a related party transaction, and a special committee of Trio’s board of directors (the “Trio
Special Committee”) was formed to evaluate and negotiate the terms of this acquisition. TPET engaged KLSP to conduct a comprehensive
analysis and valuation of the asset, which analysis was delivered to TPET and evaluated by the Trio Special Committee. However, TPET
and Trio LLC did not agree on the terms and transaction was not closed.

58

Under
the Fourth Amendment, we also agreed to start the process of pursuing and consummating additional lease acquisitions in the areas deemed
by the parties to be higher priority areas lying within and around the South Salinas Project Area. Such acquisitions were approved for
an aggregate purchase price not to exceed approximately $79,000.00. Some leases were acquired in February and March, 2023, as described
more-fully elsewhere hereunder.

Further
under the Fourth Amendment, we agreed to engage the services of a contractor to do road access work and dirt-moving work (estimated to
cost approximately $170,000.00) that was necessary before the commencement of drilling the HV-1 well. We also agreed to pay a deposit
(in an amount not to exceed $25,000) to secure a drilling rig to drill the HV-1 well, which was drilled in May, 2023. This deposit was
not required and was not paid.

Finally,
we agreed, retroactively commencing on May 1, 2022, to accrue a monthly consulting fee of $35,000.00, due and payable by the Company
to Trio LLC no later than two weeks following the closing date of Company’s IPO. This fee was intended to cover the work being
done for the Company by Trio LLC’s employees prior to the closing date of our IPO. This consulting fee was paid by TPET to Trio
LLC.

McCool
Ranch Oil