Company: TPET
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001493152-25-013189
Chunk: 29

Company: Trio Petroleum Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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 transferred, and the Company paid $325,000 in cash.

The
Company has accounted for the transaction as an asset acquisition under ASC 805 – Business Combinations. As of July 31,
2025, the total capitalized cost of the Novacor Assets is $1,406,081, comprising:

    ●
    $333,400
    in cash payments, including $8,400 in capitalizable Canadian Provincial Sales Tax (“PST”)

    ●
    $747,681
    in equity consideration, based on a fair value of $1.42 per share

    ●
    $325,000
    in deferred consideration paid at the Second Closing

Following
the closings, operating costs for the Novacor Assets have been and will be maintained at levels consistent with the auditor’s
report for the 18-month period prior to acquisition, unless otherwise agreed upon. After two years, operating costs will remain
competitive with other operators in the region; Novacor will serve as the on-site operator and perform all work and services under
the Novacor APA and Trio Canada may terminate Novacor’s operational role with 30 days’ prior written notice.

Optioned
Assets – P.R. Spring, Uintah Basin, Utah

On
May 15, 2025, the Company entered into a non-binding Letter of Intent (LOI) with HSO for the potential acquisition of 2,000 acres at
P.R. Spring, Uintah Basin, Utah. Under the LOI, the Company would issue 1,492,272 restricted shares and pay $850,000 at closing, subject
to execution of definitive agreements. Upon signing the LOI, the Company made a non-refundable $150,000 Option Payment to HSO. The LOI
requires evidence of a minimum sustained production rate of 40 barrels per day for a continuous 30-day period from two wells at Asphalt
Ridge by May 15, 2026, or the LOI will expire unless extended.

    14

NOTE
6 – RELATED PARTY TRANSACTIONS

South
Salinas Project – Related Party

Upon
its formation, the Company acquired from Trio LLC a majority working interest in the South Salinas Project and engaged the services of
certain members of Trio LLC to manage the Company’s assets (see Note 1 and Note 5). Trio LLC operates the South Salinas Project
on behalf of the Company, and as operator, conducts and