Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 122

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 8
Chunk 122
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P.R. Spring Letter of Intent and Option

On May 15, 2025, the Company entered into a non-binding
Letter of Intent (LOI) with Heavy Sweet Oil LLC (“HSO”) for the potential acquisition of 2,000 acres of oil and gas properties
at P.R. Spring, Uintah Basin, Utah (“P.R. Spring”), which is adjacent to Asphalt Ridge. The LOI contemplates our issuance
of 1,492,272 restricted shares of common stock and the payment of $850,000 at closing, subject to execution of definitive agreements.
Upon signing the LOI, we made a non-refundable $150,000 payment to HSO in consideration for the option. 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 by us. We are not under any obligation to enter into definitive agreements in connection with an
acquisition.

Carbon
Capture and Storage Project as part of Company’s South Salinas Project

We
are committed to attempting to reduce our own carbon footprint and, where possible, that of others. For this reason, we are taking initial
steps to launch a Carbon Capture and Storage (“CCS”) project as part of the South Salinas Project, which appears ideal for
such a task. The South Salinas Project covers a vast area and is uniquely situated at a deep depocenter where there are thick geologic
zones (e.g., Vaqueros Sand, up to approximately 500’ thick) about two miles deep, which could accommodate and permanently store
vast volumes of CO2. Four existing deep wells in the South Salinas Project (i.e., the HV 1-35, BM 2-2, BM 1-2-RD1 and HV 3-6 wells) are
excellent candidates for use as CO2 injection wells. A CCS project in the future may help reduce our carbon footprint by sequestering
and permanently storing CO2 deep underground at one or more deep wells, away from drinking water sources. Furthermore, three of the aforementioned
deep wells are directly located on three idle oil and gas pipelines that could be used to import CO2 to our CCS Project. We have opened
discussions with third parties who wish to reduce their own greenhouse gas emissions and who may be interested in participating in our