Company: TPET
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001493152-25-013189
Chunk: 30

Company: Trio Petroleum Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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 has full control of the operations within the constraints of the Joint Operating
Agreement, and acts in the capacity of an independent contractor. Trio LLC currently holds a 3.8% working interest in the South Salinas
Project and the Company holds an 85.775% working interest. The Company provides funds to Trio LLC to develop and operate the assets in
the South Salinas Project; such funds are classified in the short-term asset/liability section of the balance sheet as Advance to Operators/Due
to Operators, respectively. As of July 31, 2025 and October 31, 2024, the balance of the Due to Operators account is $29,740 and $103,146,
respectively.

McCool
Ranch Oil Field Asset Purchase – Related Party

On
October 16, 2023, the Company entered into the McCool Ranch Purchase Agreement with Trio LLC for purchase of a 21.918315% working interest
in the McCool Ranch Oil Field located in Monterey County near the Company’s flagship South Salinas Project (see Note 5); the Assets
were situated in what is known as the “Hangman Hollow Area” of the McCool Ranch Oil Field. The Company initially recorded
a payment of $100,000 upon execution of the McCool Ranch Purchase Agreement, at which time Trio LLC began refurbishment operations with
respect to the San Ardo WD-1 to determine if it was capable of reasonably serving the produced water needs for the assets. Following
successful refurbishment, the Company committed to an additional $400,000 payment under the agreement.

On
May 27, 2025, the Company made the decision to terminate the McCool Ranch Oil Field leases. 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.

Restricted
Stock Units (“RSUs”) issued to Directors

On
June 19, 2024, the Company agreed to award 50,000 restricted stock units to a newly appointed director under the Plan; as there were
only 22,750 shares remaining for issuance under the Plan at that time, 22,500 RSUs were awarded immediately with a fair value of $6.00
per share for a grant date value of $134,550, with the remainder issued in the following quarter at a fair value of $3.32 per share