Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 10

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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, Canada. The
Company has had revenue-generating operations since the McCool Ranch Oil Field was restarted on February 22, 2024, and recognized
its first revenues in the fiscal quarter ended April 30, 2024, and received the proceeds from these operations in June 2024. Most
recently, it has recognized initial revenues from its Saskatchewan assets during the quarter ended April 30, 2025.

Formation
of a Canadian Wholly-Owned Subsidiary

On
March 28, 2025, the Company formed Trio Petroleum Canada, Corp., an Alberta, Canada corporation and its wholly owned subsidiary (“Trio
Canada”). The Company’s Chief Executive Officer, Robin Ross, is also the Chief Executive Officer of Trio Canada and also
serves as Secretary/Treasurer. The Company’s Chief Financial Officer, Greg Overholtzer, is also the Chief Financial Officer of
Trio Canada. Robin Ross also serves as the sole director of Trio Canada.

Acquisition
of South Salinas Project

The
Company was initially formed to acquire from Trio LLC (“Trio LLC”) an approximate 82.75% working interest (which
was subsequently increased to an approximate 85.775% working interest in April 2023), in the large, approximately 9,300-acre South Salinas
Project that is located in Monterey County, California, and subsequently partner with certain members of Trio LLC’s management
team to develop and operate those assets. In September 2021, the Company entered into a Purchase and Sale Agreement (“Trio LLC
PSA”) with Trio LLC to acquire the purchased percentage of the South Salinas Project’s leases, wells and inventory in exchange
for $300,000 cash, a non-interest-bearing note payable of $3,700,000 and 245,000 shares of the Company’s $0.0001 par value common
stock (which constituted 45% of the total number of issued shares of the Company at that time). The Company accounted for the purchase
as an asset acquisition, as prescribed in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification
(“ASC”) 805 – Business Combinations. The assets and associated asset retirement obligations (“ARO”)
were recorded based on relative fair value at the estimated fair value of the consideration paid. The Company holds an approximate 68.62%
interest after the application of royalties (“net revenue interest”) in the South Salinas Project, while Trio LLC holds an