Company: TPET
Filing Date: 2025-03-14
Form Type: 10-Q
Source: 0001493152-25-010362
Chunk: 60

Company: Trio Petroleum Corp.
Filing Date: 2025-03-14
Form: 10-Q
Item: Part I, Item 1
Chunk 60
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 respectively. Cash
provided by financing activities during the three months ended January 31, 2025 was primarily attributable to approximately $3.5 million
in net proceeds from the issuance of common shares in connection with an ATM agreement, offset by payments for related party debt and
promissory notes of approximately $0.2 million and $0.5 million, respectively. Cash provided by financing activities during the three
months ended January 31, 2024 was primarily attributable to approximately $0.5 million in net proceeds from the issuance of convertible
debt, offset by payments for the convertible debt in the amount of approximately $0.4 million.

The
Company’s cash change was an increase of approximately $1.6 million as of January 31, 2025. Management believes that the cash on
hand and working capital are sufficient to meet its current anticipated cash requirements for anticipated capital expenditures and operating
expenses for the next twelve months.

Contractual
Obligations and Commitments

Unproved
Property Leases

We
hold various leases related to the unproved properties of the South Salinas Project; two of the leases are held with the same lessor.
The first lease, which covers 8,417 acres, was amended on May 27, 2022 to provide for an extension of then-current force majeure status
for an additional, uncontested twelve months, during which we would be released from having to evidence to the lessor the existence of
force majeure conditions. As consideration for the granting of the lease extension, we paid the lessor a one-time, non-refundable payment
of $252,512; this amount was capitalized and reflected in the balance of the oil and gas property as of October 31, 2022. The extension
period commenced on June 19, 2022 and currently, the “force majeure” status has been extinguished by the drilling of the
HV-1 well. The ongoing operation and oil production at the HV-3A well maintain the validity of the lease.

The
second lease covers 160 acres of the South Salinas Project; it is currently held by delay rental and is renewed every three years. Until
drilling commences, we are required to make delay rental payments of $30/acre per year. We are currently in compliance with this requirement
and have paid in advance the delay rental payment for the period from October 2024 through October 2025.

We