Company: TPET
Filing Date: 2025-03-14
Form Type: 10-Q
Source: 0001493152-25-010362
Chunk: 28

Company: Trio Petroleum Corp.
Filing Date: 2025-03-14
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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(per amendment) to the principal of the note. On November 25, 2024, the Company paid off the Peterson Note in the amount of $143,516,
with $135,000 in satisfaction of the principal amount owed and $8,516 towards accrued interest.

Consulting
Agreement

On
December 31, 2024, the employment agreement between the Company and Mr. Overholtzer ended and on January 1, 2025, the Company entered
into an independent contractor agreement with Mr. Overholtzer, under which he continues to serve as the Chief Financial Officer of the
Company and is paid a monthly fee of $12,500; the initial term of the agreement is for one year and will be automatically renewed unless
either party provides a 30-day notice prior to the expiration of the agreement.

NOTE
8 – COMMITMENTS AND CONTINGENCIES

From
time to time, the Company is subject to various claims that arise in the ordinary course of business. Management believes that any liability
of the Company that may arise out of or with respect to these matters will not materially adversely affect the financial position, results
of operations, or cash flows of the Company.

Unproved Property Leases

The
Company holds interests in various leases related to the unproved properties of the South Salinas Project (see Note 6); two of the leases
are held with the same lessor. The first lease, which covers 8,417 acres, was amended on May 27, 2022 to provide for an extension of
then-current force majeure status for an additional, uncontested twelve months, during which the Company would be released from having
to evidence to the lessor the existence of force majeure conditions. As consideration for the granting of the lease extension, the Company
paid the lessor a one-time, non-refundable payment of $252,512; this amount was capitalized and reflected in the balance of the oil and
gas property as of October 31, 2022. The extension period commenced on June 19, 2022 and currently, the “force majeure” status
has been extinguished by the drilling of the HV-1 well. The ongoing operations and oil production at the HV-3A well maintains the validity
of the lease.

The
second lease covers 160 acres of the South Salinas Project; it is currently held by delay rental and is renewed every three years. Until
drilling