Company: TPET
Filing Date: 2025-03-14
Form Type: 10-Q
Source: 0001493152-25-010362
Chunk: 49

Company: Trio Petroleum Corp.
Filing Date: 2025-03-14
Form: 10-Q
Item: Part I, Item 1
Chunk 49
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 production programs (the “HSO Program”) on such Asphalt
Ridge Leases. TPET also holds the right of first refusal to participate with up to a 20% working interest on the greater approximate
30,000 acre leasehold at terms offered to other third-parties. On December 29, 2023, the Company and HSO entered into an Amendment to
Leasehold Acquisition and Development Agreement (the “Amendment to the Asphalt Ridge Option Agreement”), pursuant to which
the Company and HSO amended the Asphalt Ridge Option Agreement to provide that, within three (3) business days of the effective date
of the Amendment to the Asphalt Ridge Option Agreement, the Company would fund $200,000 of the $2,000,000 total purchase price in advance
of HSO satisfying the closing conditions set forth in the Asphalt Ridge Option Agreement, in exchange for the Company receiving an immediate
2% interest in the initial 960 acres, which advanced funds would be used solely for the building of roads and related infrastructure
in furtherance of the development plan. In January 2024, the Company funded an additional $25,000 resulting in a 2.25% working interest
in the initial 960 acres.

The
Asphalt Ridge Project, according to J. Wallace Gwynn of Energy News, is estimated to be the largest measured tar sand resource in the
United States and is unique given its low wax and negligible sulfur content, which is expected to make the oil produced very desirable
for many industries, including shipping.

Asphalt Ridge is a prominent,
northwest-southeast trending topographic feature (i.e., a dipping slope called a hog’s back or cuesta) that crops-out along
the northeast flank of the Uintah Basin. The outcrop is comprised largely of Tertiary and Cretaceous age sandstones that are locally
highly saturated with heavy oil and/or tar. Deposits and reserves located in the Uintah Basin are described in a report published in
October 1985 by the United States Department of Energy’s Laramie Energy Technology Center (the “LETC”) titled In
Situ Recovery of Oil from Utah Tar Sand: A Summary of Tar Sand Research at the Laramie Energy Technology Center,  by L.C.
Marchant and J.D. Westhoff (the “LETC Report”), covering work done by the LETC from 1971 to 1982, which was concentrated
on major U.S. tar and sand deposits found