Company: TPET
Filing Date: 2025-02-05
Form Type: S-1/A
Source: 0001493152-25-005014
Chunk: 84

Company: Trio Petroleum Corp.
Filing Date: 2025-02-05
Form: S-1/A
Chunk 84
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Contractual Obligations and Commitments

Unproved Property Leases

We hold various
leases related to the unproved properties of the South Salinas Project; two of the leases are held with the same lessor. The first lease,
which covers 8,417 acres, was amended on May 27, 2022 to provide for an extension of then-current force majeure status for an additional,
uncontested twelve months, during which we would be released from having to evidence to the lessor the existence of force majeure conditions.
As consideration for the granting of the lease extension, we paid the lessor a one-time, non-refundable payment of $252,512; this amount
was capitalized and reflected in the balance of the oil and gas property as of October 31, 2022. The extension period commenced on June
19, 2022 and currently, the “force majeure” status has been extinguished by the drilling of the HV-1 well. The ongoing operation
and oil production at the HV-3A well maintain the validity of the lease.

The second lease covers 160 acres of the South Salinas Project; it is currently held by delay rental and is renewed every three years. Until drilling commences, we are required to make delay rental payments of $30/acre per year. We are currently in compliance with this requirement and have paid in advance the delay rental payment for the period from October 2023 through October 2024.

We hold interests in various leases related to the unproved properties of the McCool Ranch Oil Field. These leases occur in two parcels,
“Parcel 1” and “Parcel 2”. Parcel 1 comprises ten leases and approximately 480 acres, which are held by delay
rental payments that are paid-up and current. Parcel 2 comprises one lease and approximately 320 acres, which is held by production.
The total leasehold comprises approximately 800 gross and net acres.

During February and March of 2023, we entered into additional leases related to the unproved properties of the South Salinas Project with two groups of lessors. The first group of leases covers 360 acres and has a term of 20 years; we are required to make rental payments of $25/acre per year. We are currently in compliance with this requirement and have paid in advance the rental payment for the period February 2024 through February 2025. The second group of leases covers 307.75 acres and has