Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 68

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 1
Chunk 68
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 been written off and have been expensed on the statement of operations as of April 30, 2025.
No further rental payments or development activities will be pursued.

On
November 10, 2023, we entered into the ARLO Agreement with HSO for a term of nine months which allows us 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, 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 us.

On
December 29, 2023, we entered into an amendment to the ARLO Agreement, whereby we funded $200,000 of the $500,000 payable by us 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 April 30, 2025,
we have paid a total of $225,000 to HSO in costs related to infrastructure and have 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 April 30, 2025.

Per
the most recent amendment to the ARLO Agreement signed in April 2025, we had until May 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. The option expired after the reporting period on May 10, 2025 due to our
failure to exercise it before the expiration date. As a result, we forfeited any further right to acquire the
additional 17.75% working interest but will retain our existing 2.25% interest in the leases.

Proved
Property Leases

In
April 2025, the Company acquired oil and gas lease rights for four leases related to the proved properties located in Saskatchewan, Canada
(see Note 5); the sum total of all four leases is 320 net acres and all are held by production.

Board
of Directors Compensation

On
July 11,