Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 1175

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 5
Chunk 1175
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 realization of assets and the satisfaction of liabilities in the normal
course of business. Accordingly, the financial statements do not include any adjustments relating to the recoverability of assets and
classification of liabilities that might be necessary should we be unable to continue as a going concern. The financial statements included
in this report also include a going concern footnote (see Note 3).

Optioned
Assets - McCool Ranch Oil Field 

In
October 2023, we entered into an agreement (“McCool Ranch Purchase Agreement”) with Trio LLC for the purchase of a 21.918315%
working interest in the McCool Ranch Oil Field located in Monterey County near our flagship South Salinas Project; we initially recorded
a payment of $100,000 upon the execution of the McCool Ranch Purchase Agreement, at which time Trio LLC began refurbishment operations
with respect to the San Ardo WD-1 water disposal well (the “WD-1”) to determine if it was capable of reasonably serving the
produced water needs for the assets. With refurbishment successfully accomplished, we will pay an additional $400,000 per
the McCool Ranch Purchase Agreement; to date, operations have been successfully restarted at three wells, and we expect to restart the
last two wells in the restart program during the calendar quarter ending September 30, 2024. As of October 31, 2024, we have paid approximately
$284,000 during the year for restarting production operations on the assets and have a liability recorded of approximately $116,000 to
Trio LLC as of October 31, 2024.

Optioned
Assets – Asphalt Ridge Leasehold Acquisition & Development Option Agreement

On
November 10, 2023, we entered into a leasehold acquisition and development option agreement (“ARLO Agreement”) with Heavy
Sweet Oil, LLC (“HSO”) for a term of nine months, which gives the Company the exclusive right to acquire up to a 20% interest
in a 960 acre drilling and production program in the Asphalt Ridge leases for $2,000,000, which may be invested in tranches by us, with
an initial tranche closing for an amount no less than $500,000 and paid within seven days subsequent to HSO providing certain required
items to the Company.

37

On
December 29, 2023, we entered into an amendment to the ARLO Agreement, whereby we funded $200,000 of the $500,000 payable by us to HSO