Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 560

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 1B
Chunk 560
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 the outstanding principal balance and all accrued and unpaid interest in the case of an
Event of Default (as such term is defined in the Peterson Note), where there is either a payment default or a bankruptcy
event.

On
September 26, 2024 and October 28, 2024, the Company entered into the first and second amendments, respectively, to the Peterson Note;
each amendment extended the maturity dates to October 28, 2024 and November 30, 2024, respectively, and added a $5,000 extension fee
(per amendment) to the principal of the note. As of October 31, 2024, the Peterson Note has a principal balance of $135,000.

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 commences, the Company is required to make delay rental payments of $30/acre per year. The Company is currently in compliance