Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 325

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 1
Chunk 325
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million in net proceeds from the convertible note financing, offset by the payment of offering costs of approximately $1.0 million and
the payment of notes payables of approximately $1.5 million.

40

Our
cash change was a decrease of approximately $1.3 million as of October 31, 2024. Management believes that the cash on hand and working
capital are sufficient to meet its current anticipated cash requirements for anticipated capital expenditures and operating expenses
for the next twelve months.

Contractual
Obligations and Commitments

Unproved
Property Leases

We
hold various leases related to the unproved properties of the South Salinas Project; two of the leases are held with the same lessor.
The first lease, which covers 8,417 acres, was amended on May 27, 2022 to provide for an extension of then-current force majeure status
for an additional, uncontested twelve months, during which we would be released from having to evidence to the lessor the existence of
force majeure conditions. As consideration for the granting of the lease extension, we paid the lessor a one-time, non-refundable payment
of $252,512; this amount was capitalized and reflected in the balance of the oil and gas property as of October 31, 2022. The extension
period commenced on June 19, 2022 and currently, the “force majeure” status has been extinguished by the drilling of the
HV-1 well. The ongoing operation and oil production at the HV-3A well maintain the validity of the lease.

The
second lease covers 160 acres of the South Salinas Project; it is currently held by delay rental and is renewed every three years. Until
drilling commences, we are required to make delay rental payments of $30/acre per year. We are currently in compliance with this requirement
and have paid in advance the delay rental payment for the period from October 2023 through October 2024.

We
hold interests in various leases related to the unproved properties of the McCool Ranch Oil Field. These leases occur in two parcels,
“Parcel 1” and “Parcel 2”. Parcel 1 comprises ten leases and approximately 480 acres, which are held by delay
rental payments that are paid-up and current. Parcel 2 comprises one lease and approximately 320 acres, which is held by production.
The total leasehold comprises approximately 800 gross and net