Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 36

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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SO 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, the Company had paid a total of $225,000 to HSO in costs related to infrastructure and has 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.

    16

Per
the most recent amendment to the ARLO Agreement signed in April 2025, the Company 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 the
Company’s failure to exercise it before the expiration date. As a result, the Company forfeited any further right
to acquire the additional 17.75% working interest but will retain its 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, 2022, the Company’s Board of Directors approved compensation for each of the non-employee directors of the Company, which
would be effective upon the consummation of the IPO. Such compensation is structured as follows: an annual retainer of $50,000 cash plus
an additional $10,000 for each Board committee upon which the Director serves, each paid quarterly in arrears. Payment for this approved
compensation commenced upon successful completion of the Company’s IPO in April 2023, and for the three and six months ended April
30, 2025, the Company recognized $102,508 and $161,675, respectively, in directors’ fees. For the three and six months ended April
30, 2024, the Company recognized $54,000 and $110,685, respectively, in directors’