Company: TPET
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001493152-25-013189
Chunk: 85

Company: Trio Petroleum Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 2
Chunk 85
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 partner with certain members of Trio
LLC’s management team to develop and operate those assets. We hold an approximate 68.62% interest after the application of royalties
(“net revenue interest”) in the South Salinas Project. Trio LLC holds an approximate 3.8% working interest in the South Salinas
Project. We and Trio LLC are separate and distinct companies.

Initially, California was a significant part of our geographic focus; however,
due to rising drilling costs and the negative impact on potential profitability, we have strategically shifted our efforts beyond California
to pursue more economically viable opportunities. This transition is reflected in our acquisition of an interest in the Asphalt Ridge
Project in Uintah County, Utah, as well as our recent acquisition of additional oil and gas assets in the prolific Lloydminster, Saskatchewan
heavy oil region.

26

South
Salinas Project

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 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