Company: TPET
Filing Date: 2025-03-14
Form Type: 10-Q
Source: 0001493152-25-010362
Chunk: 84

Company: Trio Petroleum Corp.
Filing Date: 2025-03-14
Form: 10-Q
Item: Part I, Item 8
Chunk 84
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 comprises one lease and approximately 320 acres, which is held by production.
The total leasehold comprises approximately 800 gross and net acres.

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 leases.
As of January 31, 2025, the Company has paid a total of $225,000 to HSO in costs related to infrastructure and has obtained a 2.25% interest
in the leases; such costs are capitalized costs and are reflected in the balance of the oil and gas property as of January 31, 2025.

Per
the most recent amendment to the ARLO Agreement signed in January 2025, the Company has until April 10, 2025 to pay HSO an additional
$1,775,000 to exercise an option for the remaining 17.75% working interest in the initial 960 acres of the Asphalt Ridge Leases. If the
Company raises sufficient funds in its current public offering (for which an amendment to its Form S-1 was filed with the SEC on February
28, 2025), it will consider using $1,775,000 of the net proceeds received to exercise the remaining 17.75% working interest in the Asphalt
Ridge Leases. If this option is not exercised on or before such date, the Company will forfeit any further right to acquire this additional
17.75% working interest in the initial 960 acres.

Entry
into a Letter of Intent to Ac