Company: TPET
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001493152-25-013189
Chunk: 101

Company: Trio Petroleum Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 2
Chunk 101
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of the second quarter of 2025, we elected to terminate all McCool Ranch leases. These leases have been written off and expensed in the
statement of operations. No further rental payments or development activities will be pursued.

Asphalt
Ridge Leases – ARLO Agreement

On
November 10, 2023, we entered into the ARLO Agreement with HSO, granting the exclusive right to acquire up to a 20% working interest
in a 960-acre drilling and production program in the Asphalt Ridge leases for $2,000,000. The agreement allowed for investment in tranches,
with an initial tranche of no less than $500,000 payable within seven days of HSO satisfying certain conditions.

On
December 29, 2023, we amended the ARLO Agreement and funded $200,000 of the initial $500,000 tranche in advance of HSO satisfying the
required conditions. In exchange, we acquired a 2% interest in the leases. These funds were designated for infrastructure development,
including road construction. As of July 31, 2025, we had paid a total of $225,000 to HSO and hold a 2.25% working interest in the leases.
These costs have been capitalized and are reflected in the oil and gas property balance as of July 31, 2025.

Under
the most recent amendment signed in April 2025, we had until May 10, 2025 to pay an additional $1,775,000 to exercise its option for
the remaining 17.75% interest. The option expired unexercised after the reporting period, and we forfeited our right to acquire the additional
interest. We retain our existing 2.25% interest.

Proved
Property Leases

Saskatchewan,
Canada

In
April 2025, we acquired oil and gas lease rights for four proved properties located in Saskatchewan, Canada (see Note 5). The leases
total 320 net acres and are all held by production.

Board
of Directors Compensation

On
July 11, 2022, our Board of Directors approved a compensation plan for non-employee directors, effective upon the consummation of our
initial public offering (IPO). Under this plan, each non-employee director is entitled to an annual cash retainer of $50,000, plus an
additional $10,000 per Board committee served, with all payments made quarterly in arrears