Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 256

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 1
Chunk 256
---
 farming operations, livestock grazing, and the exploitation of oil and gas reserves,
as well as the preservation of open space that preserves natural habitat. There is partly overlapping ownership in Bradley Minerals (the
Lessor) and in Porter Ranch (the surface owner) and the interests and objectives of the two entities are closely aligned. In some projects
there are conflicts between surface and mineral owners, for example with the surface owner discouraging and the mineral owner encouraging
development. Importantly, in this project the mineral and surface owners have aligned interests/objectives, and this is beneficial to
the South Salinas Project. Total royalty burden at the South Salinas Project is approximately 20%, all of which is held by lessors. TPET
and Trio LLC and their associates hold no royalty interests in the South Salinas Project.

Infrastructure
at the South Salinas Project includes seven existing wells, six expansive well pads, and three idle Aera Energy oil and gas pipelines.
The expansive well pads are important because they can accommodate significant project development without additional disturbance of
the surface – the Company believes that this may help expedite the approval of necessary additional permits.

South
Salinas Project Property and Future Operations

The
Company has drilling permits from Monterey County for two additional wells at the South Salinas Project, being the HV-2 well and the
HV-4 well. The Company may drill one or both of these wells in 2025. The Company is evaluating whether to directionally drill both of
these wells into the Presidents Oil Field, or to drill one into the Presidents Oil Field and one into the Humpback Oil Field. The production
performance of the HV-3A well, which was restarted on March 22, 2024, will bear on the drilling plans for HV-2 and HV-4.

The
Company anticipates that it may be desirable in the future to obtain access or ownership of the Aera Energy pipelines (possibly jointly
owned with Chevron) to move oil and gas to markets and possibly to move produced water off-site, as well as potentially being used in
a Carbon Capture and Storage (CCS) Project. Aera Energy (“Aera”) and Chevron have significant operations a few miles north
at the San Ardo Oil Field. Aera’s holdings in California were recently acquired by the companies IKAV, an international asset management
group headquartered in Germany, and CPP Investments, a professional investment management organization that manages investments of contributors
and beneficiaries of the Canada Pension Plan. In 2024