Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 1741

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 8
Chunk 1741
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 had an original term of nine months, through August 10, 2024, which has been extended through February 10, 2025.
Pursuant to the Asphalt Ridge Option, the Company has the exclusive right, but not the obligation, to acquire up to a 20% working interest
in the Asphalt Ridge Leases for $2,000,000 (the “Purchase Price”), which may be invested in tranches, provided that the initial
tranche closing occurs during the Asphalt Ridge Option period and subsequent tranches occurring as soon thereafter as practical within
the Asphalt Ridge Option period, with each tranche providing the Company a portion of the ownership of the Asphalt Ridge Leases equal
to 20% multiplied by a fraction, the numerator of which is the total consideration paid by the Company, and denominator of which is $2,000,000.
Upon receipt of any funding from the Company pursuant to the Asphalt Ridge Option, HSO is required to pay that amount to the named operator
of the properties, to pay for engineering, procurement, operations, sales, and logistics activities on the properties. The Asphalt Ridge
Option Agreement provides that additional development capital is expected to be secured by HSO, and made available for the Company’s
participation, by way of a reserve base lending facility (RBL), provided that if such RBL cannot be obtained or does not cover all subsequent
capital costs, HSO agreed to fund a maximum of $5,000,000 of the first funding required for the development program, with the parties
splitting any costs thereafter according to their ownership interests. The initial target is three wells, with an estimated cost of $5,000,000
for roads, pads, drilling, and above ground steam and storage facilities, and thereafter the parties anticipate working together to fund
further well development based on their proportionate ownership thereof.

On
or around the date the parties entered into the Asphalt Ridge Option Agreement, HSO entered into a Leasehold Acquisition and Development
Option Agreement (the “LEC Option”) with Lafayette Energy Corp (“LEC”), of which Michael Peterson, Trio’s
former Chief Executive Officer and director, is also the Chief Executive Officer and director. The LEC Option has similar terms as the
Asphalt Ridge Option Agreement, except that it allows LEC to obtain a 30% interest in the Asphalt Ridge Leases and requires LEC to pay
certain equity compensation to HSO.

The
Company and HSO further agreed that, to the extent