Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 262

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 1
Chunk 262
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 to this Annual Report.

Disclosure
of Reserve Volumes and Reserve Values as of the End of April 30, 2024

KLSP
in the aforementioned reserve analyses recognizes the occurrence at the South Salinas Project of both Probable (P2) Undeveloped reserves
and of Possible (P3) Undeveloped reserves (see: “Glossary of Terms Used to Characterize Reserves & Projects” in Table
22 in the Reserve Report). SEC criteria stipulate that reserves cannot be classified as P1 Proved (i.e., PDP or Proved Developed Producing,
PDNP or Proved Developed Not Producing, PUD or Proved Undeveloped) if said reserves are not fully permitted for long-term production.
Permits for full field development and long-term production are being sought by the Company, but have not yet been approved for the South
Salinas Project and, therefore, KLSP does not recognize Proved reserves at the South Salinas Project.

KLSP
provided estimates of net oil and gas reserves and future net revenues, attributable to the Company, for Phase 1, Phase 2 and Phase 3
(Full Development) for the entire South Salinas Project, as shown in the below Table. Future net revenue and discounted present value
are on a before federal income tax (BFIT) basis. Both undiscounted and discounted net cash flow to the Company are shown. The discounted
dollar amounts shown in the below Table are discounted at 10% and, therefore, are net present value (“NPV”) 10 amounts, whereas
KLSP also provided estimated NPV15, 20, 30, 45 and 60. Reserve volumes are expressed in stock tank barrels (STB) of oil and thousands
of standard cubic feet of gas (MCF).

There
are uncertainties in reserve forecasts and in associated estimates of future cash flows due to uncertainties in various matters that
are elaborated above (see: We face substantial uncertainties in estimating the characteristics of our assets, so you should not place
undue reliance on any of our measures.). The Company’s estimates of Probable (P2) Undeveloped reserves, Possible (P3) Undeveloped
reserves and their respective estimated future cash flows are discussed more-fully above (see Evaluation of Reserves and Net Revenue)
and are described in detail in the Current Reserve Report. The Company’s reserve estimates are based on field analogs, numerical
models