Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 120

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 8
Chunk 120
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 California Water Boards
a permit for a water disposal project at the South Salinas Project are also progressing. In the meantime, the Company recently determined
that existing permits allow production testing to continue at the HV-3A discovery well at Presidents Field and, consequently, testing
operations were restarted at this well on March 22, 2024. Oil production from this well has occurred and the Company is assessing steps to attempt to increase the well’s gross production rate, for example by adding up to 650
feet of additional perforations in the oil zone and/or acidizing the well for borehole cleanup. First oil sales from the HV-3A well occurred
in the third calendar quarter of 2024 but is currently idled as we further discussions with local oil and gas companies to joint venture the project.

McCool
Ranch Oil Field 

On
October 16, 2023, we entered into a Purchase and Sale Agreement with Trio LLC (the “McCool Ranch Purchase Agreement”)
pertaining to the McCool Ranch Oil Field. Pursuant to this agreement, effective October 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