Company: TPET
Filing Date: 2025-03-14
Form Type: 10-Q
Source: 0001493152-25-010362
Chunk: 69

Company: Trio Petroleum Corp.
Filing Date: 2025-03-14
Form: 10-Q
Item: Part I, Item 8
Chunk 69
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 Board (“FASB”) Accounting Standards Codification
(“ASC”) 805 – Business Combinations. The assets and associated asset retirement obligations (“ARO”)
were recorded based on relative fair value at the estimated fair value of the consideration paid. The Company holds an approximate 68.62%
interest after the application of royalties (“net revenue interest”) in the South Salinas Project, while Trio LLC holds an
approximate 3.8% working interest in the South Salinas Project; the Company and Trio LLC are separate and distinct companies.

There
are two contiguous areas of notable oil/gas accumulations in the South Salinas Project; the first is the Humpback Area that occurs in
the northern part of the project and the second is the Presidents Area (“Presidents Oil Field”) that occurs in the southern
part of the project. As of January 31, 2025 and October 31, 2024, there were no proved reserves attributable to the approximate 9,300
acres of the property. Since it was returned
to production in March 2024, the HV-3A well or discovery well at the South Salinas Project has been producing oil with a generally favorable
oil-water ratio but is currently idled pending an assessment of the viability of increasing the well’s gross production rate. 

Initial
Public Offering

The
Company’s Registration Statement (Amendment No. 9) on Form S-1/A was filed with the SEC on March 24, 2023; its Initial Public Offering
was declared effective on April 17, 2023 and closed on April 20, 2023 (collectively, the “Offering” or “IPO”).
The Company sold 100,000 shares of its common stock for total gross proceeds of $6,000,000, which is described more fully in Note 4.

Additional
Acquisitions - McCool Ranch Oil Field & Asphalt Ridge Leasehold

In
October 2023, the Company entered into an agreement (“McCool Ranch Purchase Agreement”) with Trio LLC for purchase of a 21.918315%
working interest in the McCool Ranch Oil Field located in Monterey County near the Company’s flagship South Salinas Project; the
Company initially began refurbishment operations with respect to a water disposal well. After refurbishment was successfully accomplished,
the Company restarted production operations on the assets (see Note 5 for further information). In November 2023, the Company entered
into a