Company: TPET
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001493152-25-013189
Chunk: 71

Company: Trio Petroleum Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 1
Chunk 71
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. We have experienced liquidity issues due
to, among other reasons, our limited ability to raise adequate capital on acceptable terms. We have historically relied upon the issuance
of equity and promissory notes that are convertible into shares of our common stock to fund our operations and have devoted significant
efforts to reduce that exposure. Unless we are able to raise additional capital through equity and/or debt financing, we believe our
existing cash and cash flow from operations will be sufficient to meet our working capital and capital expenditure needs for not more
than six months from the date of this report. Future capital requirements will depend on many factors, including the time period
in which we are able to ramp up the operation of wells and the acquisition of additional properties. To the extent that existing capital
and revenue growth are not sufficient to fund future activities, we will need to raise capital through additional equity or debt financings.
Additional funds may not be available on terms favorable to us or at all. Failure to raise additional capital, if needed, could have
a material adverse effect on our financial position, results of operations and cash flows. See Going Consideration Concerns above in which we raise substantial doubt about our ability to continue as
a going concern.

Contractual
Obligations and Commitments

Unproved
Property Leases

South
Salinas Project

We
hold various leases related to unproved properties in the South Salinas Project, including two leases with the same lessor:

    ●
    Lease
    1 (8,417 acres): Such lease was amended on May 27, 2022 to extend force majeure status for an additional uncontested twelve months,
    releasing us from evidencing force majeure conditions during that period. A one-time, non-refundable payment of $252,512 was made
    and capitalized as part of oil and gas property as of October 31, 2022. The force majeure status was extinguished following the drilling
    of the HV-1 well. Continued operations and oil production at the HV-3A well maintain the lease’s validity.

    ●
    Lease
    2 (160 acres): Such lease is held by delay rental, renewed every three years. We are required to pay $30 per acre annually until
    drilling commences. The delay rental payment for October 2024 through October 2025 has been paid in advance, and we remain in compliance.

33

In
February and March 2023,