Company: TPET
Filing Date: 2025-02-28
Form Type: S-1/A
Source: 0001493152-25-008715
Chunk: 114

Company: Trio Petroleum Corp.
Filing Date: 2025-02-28
Form: S-1/A
Chunk 114
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 for subsequent production). Phase 1 will deploy an estimated
$25.8 million for drilling, completion and associated facility costs including converting the existing BM 1-2 well for water disposal.
This capital, as well as that of Phases 2 and 3, include end-of-life plug and abandonment and surface cleanup costs per CALGEM guidelines
and regulations.

| 60 |

Phase 2 of the South Salinas Project consists
of a 12 well program. The first well is a sidetrack of an existing well (HV 2-6-RD1) through the Blue Zone in September 2025, followed
by the drilling of a new well each month thereafter through August 2026. Phase 2 begins with receipt of the remaining (Full) Development
Permits from Monterey County. Phase 2 also assumes that by September 2025 Trio should be experiencing the timely approval of drilling
permits from CALGEM. Of the 12 Phase 2 wells, four wells will target the Yellow Zone, seven are planned for the Blue Zone, and one well
is a horizontal well in the Vaqueros Zone. The capital requirement for Phase 2 well work and facilities expansion is estimated to be
$43.2 million.

Phase 3, also referred to as the Full Development
Phase, is expected to begin October 2026 with the utilization of three rigs drilling continuously for about four years. Two of the rigs
will be used to drill 101 Blue Zone wells, while the third rig will be used to drill 20 Yellow Zone wells and 16 horizontal Vaqueros
wells. Phase 3 will require an estimated $467 million of capital. When combined with Phases 1 and 2 the South Salinas Project is then
expected to generate positive cash flow by 2029. When considered alone Phases 1 and 2 are forecast to generate positive cash flows in
2026 and 2027, respectively. These expectations assume the realization of the Probable (P2) reserves that are based on the ‘most
likely’ forecasts of production. The KLSP report also provides the incremental volumes and cash flows associated with the realization
of Possible (P3) reserves and are provided in the Table below. The BOE’s cited in the Table use a conversion factor of 6 Mcf of
gas per BOE.

The combined Phases 1-3 (Total South Salinas Project) areestimated to recover 40.2 million