Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 318

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 1
Chunk 318
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our inception, we have funded our operations with the proceeds from equity and debt financing. We have experienced liquidity issues due
to, among other reasons, our limited ability to raise adequate capital on acceptable terms. We have historically relied upon the issuance
of equity and promissory notes that are convertible into shares of our common stock to fund our operations and have devoted significant
efforts to reduce that exposure. We anticipate that we will need to issue equity to fund our operations for the foreseeable future. If
we are unable to achieve operational profitability or are not successful in securing other forms of financing, we will have to evaluate
alternative actions to reduce our operating expenses and conserve cash.

The
accompanying condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United
States of America on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal
course of business. Accordingly, the financial statements do not include any adjustments relating to the recoverability of assets and
classification of liabilities that might be necessary should we be unable to continue as a going concern. The financial statements included
in this report also include a going concern footnote (see Note 3).

Optioned
Assets - McCool Ranch Oil Field 

In
October 2023, we entered into an agreement (“McCool Ranch Purchase Agreement”) with Trio LLC for the purchase of a 21.918315%
working interest in the McCool Ranch Oil Field located in Monterey County near our flagship South Salinas Project; we initially recorded
a payment of $100,000 upon the execution of the McCool Ranch Purchase Agreement, at which time Trio LLC began refurbishment operations
with respect to the San Ardo WD-1 water disposal well (the “WD-1”) to determine if it was capable of reasonably serving the
produced water needs for the assets. With refurbishment successfully accomplished, we will pay an additional $400,000 per
the McCool Ranch Purchase Agreement; to date, operations have been successfully restarted at three wells, and we expect to restart the
last two wells in the restart program during the calendar quarter ending September 30, 2024. As of October 31, 2024, we have paid approximately
$284,000 during the year for restarting production operations on the assets and have a liability recorded of approximately $116,000 to
Trio LLC as of October 31, 2024.

Optioned
Assets – Asphalt Ridge Leasehold Acquisition & Development Option Agreement