Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 53

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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 1, 2023, we entered into an agreement to
acquire an approximate 22% working interest in and to certain oil and gas assets at the McCool Ranch Field, located in Monterey
County, California, near our flagship South Salinas Project.

The
acquired assets included six oil wells, a water-disposal well, a steam generator, boiler, storage tanks, and various operational infrastructure.
While initial production was restarted on February 22, 2024, we have subsequently determined that under previously negotiated terms, natural gas prices and
water disposal costs, particularly in California, makes it cost prohibitive for the Company to employ cyclic-steam operations to increase
production and will not be economically feasible in the long run. On May 27, 2025, we executed a termination agreement with Trio LLC to
end operations at the location and abandon all related leases. Capitalized costs totaling $500,614 have been written off and expensed
in the statement of operations for the period ended April 30, 2025.

Asphalt
Ridge Option Agreement and the Lafayette Energy Leasehold Acquisition and Development Option Agreement

On
November 10, 2023, TPET entered into a Leasehold Acquisition and Development Option Agreement (the “Asphalt Ridge Option Agreement”)
with Heavy Sweet Oil LLC (“HSO”). Pursuant to the Asphalt Ridge Option Agreement, the Company acquired an option to purchase
up to a 20% working interest in certain leases at a long-recognized, major oil accumulation in northeastern Utah, including an initial
960 acres and a subsequent 1,920 acres, as well as a right-of-refusal option on approximately 30,000 acres.

On
December 29, 2023, the Company and HSO entered into an Amendment to the Asphalt Ridge Option Agreement, under which the Company funded
$200,000 in exchange for an immediate 2% working interest in the initial 960 acres. An additional $25,000 was funded in January 2024,
increasing the Company’s working interest to 2.25%. While the Company had the option to acquire an additional 17.75% working interest,
it has decided not to exercise this option and will instead retain its existing 2.25% working interest in the initial 960 acres.

26

Novacor Asset Purchase Agreement 

As of April 4, 2025, we entered into an Asset Purchase
Agreement (the “APA”) with Trio Petroleum Canada, Corp.,