Company: TPET
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001493152-25-013189
Chunk: 130

Company: Trio Petroleum Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 8
Chunk 130
---
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 approximate 3.8%
working interest in the South Salinas Project; the Company and Trio LLC are separate and distinct companies.

There
are two contiguous areas of notable oil/gas accumulations in the South Salinas Project; the first is the Humpback Area that occurs in
the northern part of the project and the second is the Presidents Area (“Presidents Oil Field”) that occurs in the southern
part of the project. As of July 31, 2025 and October 31, 2024, there were no proved reserves attributable to the approximate 9,300 acres
of the property. Since it was returned to production in March 2024, the HV-3A well or discovery well at the South Salinas Project has
been producing oil with a generally favorable oil-water ratio but is currently idled pending an assessment of the viability of increasing
the well’s gross production rate.

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.

Additional
Acquisitions - Novacor Acquisition

As
of April 4, 2025, the Company entered into