Company: TPET
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001493152-25-013189
Chunk: 57

Company: Trio Petroleum Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 1
Chunk 57
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 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 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,