Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 33

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 13
Chunk 33
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ah County, Utah. The Company
was incorporated on July 19, 2021, under the laws of Delaware to acquire, fund, and operate oil and gas exploration, development and
production projects, initially focusing on one major asset in California, the South Salinas Project (“South Salinas Project”).
The Company has since acquired interests in the McCool Ranch Oil Field in Monterey County, California, and in the Asphalt Ridge Project
in Uintah County, Utah. The Company has had revenue-generating operations since the McCool Ranch Oil Field was restarted on February
22, 2024, and recognized its first revenues in the fiscal quarter ended April 30, 2024, and received the proceeds from these operations
in June 2024.

Acquisition
of South Salinas Project

The
Company was initially formed to acquire from Trio Petroleum LLC (“Trio LLC”) an approximate 82.75% working interest (which
was subsequently increased to an approximate 85.775% working interest in April 2023), in the large, approximately 9,300-acre South Salinas
Project that is located in Monterey County, California, and subsequently partner with certain members of Trio LLC’s management
team to develop and operate those assets. In September 2021, the Company entered into a Purchase and Sale Agreement (“Trio LLC
PSA”) with Trio LLC to acquire the purchased percentage of the South Salinas Project’s leases, wells and inventory in exchange
for $300,000 cash, a non-interest-bearing note payable of $3,700,000 and 245,000 shares of the Company’s $0.0001 par value common
stock (which constituted 45% of the total number of issued shares of the Company at that time). The Company accounted for the purchase
as an asset acquisition, as prescribed in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification
(“ASC”) 805 – Business Combinations. The assets and associated asset retirement obligations (“ARO”)
were recorded based on relative fair value at the estimated fair value of the consideration paid. The Company holds an approximate 68.62%
interest after the application of royalties (“net revenue interest”) in the South Salinas Project, while Trio LLC holds an
approximate 3.8% working interest in the South Salinas Project; the Company and Trio LLC are separate and distinct companies.

There
are two contiguous areas of notable oil/gas accumulations in the South Salinas Project; the