Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 552

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 1B
Chunk 552
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 required to make rental payments of $30/acre per year. The Company is currently in compliance with this requirement and has paid in
advance the rental payment for the period from March 2024 through March 2025.

    F-13

McCool
Ranch Oil Field

In
October 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;
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 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, the Company will pay an additional $400,000
per the McCool Ranch Purchase Agreement; it has paid approximately $284,000
to date for restarting production operations on the assets and has recorded a liability of approximately $116,000
for the remainder as of the end of the period. These additional costs are capitalized costs and are reflected in the balance of the
oil and gas property as of October 31, 2024.

The
Company holds 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 acres.

Optioned
Assets – Old Man Prospect

In
October 2023, the Company and Lantos Energy entered into an option agreement, whereby the Company has the option to pay two initial payments
of $12,500 each and a final subsequent payment of $175,000, for a total of $200,000 within 120 days of the effective date for exclusive
rights to the option to purchase 80% of the 100% Before Project Payout Working Interest (“BPPWI”) in Lantos’ oil and
gas leasehold interests in Solano County, California (referred to as the Old Man Prospect). As of January 31