Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 279

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 1
Chunk 279
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 possible to produce the HV-1, HV-2, HV-3A and HV-4 wells after their individual eighteen-month production-test periods
    without additional permits;
  
    ●
    project
    economics will be less favorable if all necessary permits for on-site water disposal are not approved;
  
    ●
    it
    will not be possible to drill new wells other than the HV-2 and HV-4 wells without new permits;
  
    ●
    it
    will not be possible to utilize five of the existing Project wells (i.e., the BM 2-2, BM 1-2-RD1, HV 2-6, HV 3-6 and/or HV 1-35)
    without new permits, including conditional use permits from Monterey County, and other customary permits from local and State agencies;
  
    ●
    it
    will not be possible to initiate full-field development without new permits; and
  
    ●
    it
    will not be possible to establish long-term production without new permits.

Due
to our contractor model for drilling operations, we will be vulnerable to any inability to engage one or more drilling rigs and associated
drilling personnel.

Our
operation plan currently depends on using the services of independent drilling contractors such as Ensign Energy that operate their own
drilling rigs using their own personnel. Lack of rig availability from independent drilling contractors would hinder our operations.
Our assets include operations in California and Ensign, for example, has indicated that it is moving its drilling rigs out of California
due to decline of California’s oil and gas industry. Lack of rig availability may be a problem if there is a drilling boom and
rigs are reserved by other operators into the foreseeable future, or contrarily if there is a general lack of rigs as may occur if the
oil industry is in a slump and rigs are taken out of service. The capacities of standard oil field service companies in general (i.e.,
in addition to drilling contractors) in California have declined and continue to decline in parallel with the continuing decline of California’s
oil and gas industry.

We
have faced and may in the future face conflicts of interest in negotiations with related parties, including in negotiations with Lafayette
Energy Corp and/or Trio LLC, entities which certain of our current and former employees, officers and directors serve as employees, officers
or directors, for example concerning assets where TPET and one of these entities have interests.

TPET
and Lafayette Energy Corp (“LEC”) both