Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 260

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 1
Chunk 260
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 Eschner, the Company’s former President and a registered professional geologist, who is very
knowledgeable about the South Salinas Project, was the Company’s primary contact with KLSP regarding the reserve analyses that
were conducted by KLSP. Mr. T. Eschner played a key role providing the Company’s internal controls on the reserve estimation
effort that was carried-out by KLSP, while not interfering with KLSP’s analyses so as to ensure that KLSP’s analyses
would truly be that of an independent third-party. The Company recognizes that estimating volumes of economically recoverable oil
and natural gas reserves is somewhat subjective and that the accuracy of any reserve estimate is partly a function of the quality
and accuracy of the available data and interpretations: for this reason and others the Company strove to provide the best available
data and interpretations to KLSP. Reserve estimates typically require revision as new information becomes available and/or due to
change in conditions and/or due to unforeseen circumstances. Reserve estimates commonly differ from the quantities of oil and
natural gas that are ultimately recovered. Estimates of economically recoverable oil and natural gas and of future net revenues are
based on a number of variables and assumptions, some or all of which may prove to be incorrect.

8

The
technologies utilized by KLSP in their reserve estimation efforts are discussed in detail in the Reserve Report. These technologies included
the evaluation and incorporation of data from analog oilfields. Analogs are widely used in reserves estimating, particularly in the early
development stages when direct measurement information (production history) is limited. As described in the Society of Petroleum Engineers’
Petroleum Resource Management System (PRMS Section 4.1.1) “The methodology is based on the assumption that the analogous reservoir
is comparable to the subject reservoir in regard to reservoir description, fluid properties, and most likely recovery mechanism(s) applied
to the project that control the ultimate recovery of petroleum. By selecting appropriate analogs, where performance data of comparable
development plans are available, a similar production profile may be forecast. Analogs are frequently applied in aiding in the assessment
of economic producibility, production decline characteristics, drainage area, and recovery factor.” The technologies utilized
by KLSP also included constructing several numerical models that evaluated the expected oil and gas production under an appropriate range
of reservoir characteristics, and which allowed probabilistic estimates of reserves. These models required reservoir properties and,
therefore, OOIP as input. The Probabilistic method defined a distribution representing the full