Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 26

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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 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
recorded a payment of $100,000 upon execution of the agreement, at which time Trio LLC began refurbishment operations on the San Ardo
WD-1 water disposal well to assess its ability to serve the produced water needs for the assets.

On May 27, 2025, the Company made the decision to
abandon the McCool Ranch Oil Field leases. Because the conditions leading to this decision existed as of April 30, 2025, this event qualifies
as a recognized subsequent event under ASC 855-10-25-1 and has been reflected in the financial statements for the period ended April 30,
2025. Accordingly, all capitalized costs related to the acquisition, refurbishment, and production restart—including costs for support
equipment and facilities—totaling $500,614 have been written off and expensed in the statement of operations for the period ended
April 30, 2025.

The
Company will not make any further payments under the McCool Ranch Purchase Agreement, and all previously recorded liabilities associated
with the project have been recognized as an expense. The Company no longer holds any interests in the McCool Ranch Oil Field, and the
abandonment decision will be reflected in the financial statements.

Optioned
Assets – Asphalt Ridge Leasehold Acquisition & Development Option Agreement

On
November 10, 2023, the Company entered into the ARLO Agreement with HSO for a term of nine months which gives the Company the exclusive
right to acquire up to a 20% interest in a 960 acre drilling and production program in the Asphalt Ridge leases for $2,000,000, which
may be invested in tranches by the Company, with an initial tranche closing for an amount no less than $500,000 and paid within seven
days subsequent to HSO providing certain required items to the Company.

On
December 29, 2023, the Company entered into an amendment to the ARLO Agreement, whereby the Company funded $200,000 of the $500,000 payable
by the Company to HSO at the Initial Closing, in advance of HSO satisfying certain required items for a 2% interest in the leases; such
funds are to be used by HSO solely for the building of roads and related infrastructure in furtherance of the development of the