Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 272

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 1
Chunk 272
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500 million barrels of oil - it is ranked among the largest
100 oilfields in the United States by the Energy Information Administration of the U.S. Department of Energy and is commonly cited as
being among the largest ten oilfields in California. San Ardo uses significant natural gas for operations including to run steam-generators
to generate steam for steam-injection into wells as part of thermal oil-recovery operations (i.e., to produce the heavy oil that occurs
at the field). An additional supply of natural gas would be beneficial at San Ardo and the high-gravity oil that occurs in the Company’s
South Salinas Project could be beneficially blended with the heavy oil at San Ardo (source: personal communication between Trio personnel
and Aera Energy personnel: September, 2022). It is feasible that opening the three mile section of the pipelines will be agreeable to
the Company and to Aera Energy to the financial benefit of all parties. If this arrangement cannot be realized, and if funding and the
oil and gas reserves in the Project are sufficient, the Company and the Operator Trio LLC will seek permits for new oil and/or gas pipelines,
perhaps along the right-of-way of the existing pipelines to minimize new surface disturbance. The Company has a reasonable expectation
that it will be able to establish the transport of oil and/or gas, and especially gas, to market via pipelines, whether through the existing
Aera Energy pipelines or new pipelines.

14

The
Company has a reasonable expectation that the Company’s South Salinas Project will prove to have reserves approximately as estimated.
The Company has this reasonable expectation because it believes that:

    ●
    The
    geologic structures that contain oil and gas in the South Salinas Project occur approximately as mapped based on the integrated interpretations
    of three-dimensional seismic data and data from wells already drilled at the Project, including the BM 2-2 and HV-3A discovery wells
    and the recently-drilled HV-1 well;

    ●
    The
    estimated oil and gas reserves at the South Salinas Project are well-supported by geologic analogues to other large and prolific
    oil and gas fields in California; and

    ●
    The
    Reserve Report and Supplemental Reserve Report as prepared by KLSP are reasonable.

The
Company has a reasonable expectation that it will have adequate funding to develop the reserves at the South Salinas Project. This reasonable
expectation of adequate funding is based on anticipated proceeds from additional capital raises