Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 617

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 1C
Chunk 617
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 oil and/or natural gas properties, drill and equip exploratory wells that find proved reserves
and drill and equip development wells are capitalized. Acquisition costs of unproved leaseholds are assessed for impairment during the
holding period and transferred to proven crude oil and/or natural gas properties to the extent associated with successful exploration
activities. Significant undeveloped leases are assessed individually for impairment, based on our current exploration plans, and a valuation
allowance is provided if impairment is indicated. Capitalized costs from successful exploration and development activities associated
with producing crude oil and/or natural gas leases, along with capitalized costs for support equipment and facilities, are amortized
to expense using the unit-of-production method based on proved crude oil and/or natural gas reserves on a field-by-field basis, as estimated
by qualified petroleum engineers. We currently have four wells that are producing (one well in President’s Field in the South Salinas
Project and three wells at the McCool Ranch Oil Field) and are evaluating the impact of production on the reserve determination for those
wells and fields. We expect to add the reserve value of such fields to our reserve report after a further period of observation and review
of oil production.

Unproved
oil and natural gas properties

Unproved
oil and natural gas properties have unproved lease acquisition costs, which are capitalized until the lease expires or otherwise until
we specifically identify a lease that will revert to the lessor, at which time we charge the associated unproved lease acquisition costs
to exploration costs.

Unproved
oil and natural gas properties are not subject to amortization and are assessed periodically for impairment on a property-by-property
basis based on remaining lease terms, drilling results or future plans to develop acreage. We currently have four wells that are producing
(one well in President’s Field in the South Salinas Project and three wells at the McCool Ranch Oil Field) and are evaluating the
impact of production on the reserve determination for those wells and fields. We expect to add the reserve value of such fields to our
reserve report after a further period of observation and review of the oil production. As of October 31, 2024 and 2023, all of our oil
and gas properties were classified as unproved properties and were not subject to depreciation, depletion and amortization.

Impairment
of Other Long-lived Assets

We
review the carrying value of our long-lived assets annually or whenever events or changes in circumstances indicate that the historical
cost-carrying value of an asset may no