Company: TPET
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001493152-25-013189
Chunk: 61

Company: Trio Petroleum Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 1
Chunk 61
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 of business. These financial statements do not include
any adjustments that might result from the outcome of this uncertainty. Additional information is provided in Note 3 to the condensed
consolidated financial statements.

Factors
and Trends Affecting Our Business and Results of Operations

We
are mindful of global economic trends and their potential influence on commodity prices. Recent fluctuations in global oil prices, political
considerations and tariffs can impact cash flow and ultimately profitability. Mitigating factors include our relatively low lift costs
and a continued commitment to cost management and efficient production techniques. Our ability to continue to grow our business will
in large part depend on continued access to receptive capital markets.

Our primary business strategies and objectives are to grow our recently
acquired Canadian assets aggressively by acquiring projects that generate immediate cash flow and/or offer workover opportunities without
committing huge resources to new exploratory drilling, or offer transformative growth potential with strategic investment in favorable
political and economic environments such as our option on PR Spring in Uintah Basin, Utah. TPET’s current strategy and focus at
the South Salinas Project is to seek out a joint venture partner with the knowledge and capacity to operate in California. We are also
endeavoring to secure approval from CalGEM and WaterBoards of a proposed short-term water-disposal program that should significantly reduce
lease operating costs, launching a Carbon Capture and Storage Project, pursuing permits for full field development, and similar matters.
Efforts to obtain from Monterey County conditional use permits and a full field development permit for the South Salinas Project are progressing.
Efforts to obtain from the California Geologic Energy Management Division (“CalGEM”) and from the 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 has idled operations
currently pending an assessment of the viability of increasing 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.

TPET’s current strategy and focus at the PR Spring project is to
monitor the results of