Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 697

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 1C
Chunk 697
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75% working interest in the initial 960 acres.

    F-14

NOTE
7 – 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 6). Trio LLC operates the South Salinas Project
on behalf of the Company, and as operator, conducts and 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 October 31, 2024 and 2023, the balance of the Due to Operators account is $128,200 and $21,651, 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 6); the Assets are 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. With refurbishment
successfully accomplished, the Company will pay an additional $400,000
per the McCool Ranch Purchase Agreement; to date, it has paid approximately $284,000
during the year for restarting production operations on the assets and has a liability of approximately $116,000
to Trio LLC as a payable – related party on the balance sheet as of October 31, 2024.

Restricted
Stock Units (“RSUs”) issued to Directors

Pursuant
to the 2022 Equity In