Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 96

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 8
Chunk 96
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 cash payment of
$333,400, which includes a capitalizable Canadian Provincial Sales Tax (“PST”) of $8,400, the issuance of 526,536 common
shares, valued at $1.42 per share, for a total equity consideration of $747,681, and a deferred consideration payable of $325,000, scheduled
for payment upon the second closing.

Following
the closings, (i) operating costs for the Novacor Assets will for a period of two (2) years, be held at the levels detailed in the auditor’s
report over the eighteen (18) month period prior to the closings, unless otherwise mutually agreed to by the parties (ii) after such
two-year period, operating costs will remain competitive with other operators in the area; and (iii) Trio Canada may terminate the Novacor’s
post-closings actions at any time on 30 days’ prior written notice to Novacor. After the closings, Novacor will act as the on-site
operator of the Novacor Assets and perform all work and services as provided in the APA.

See
Note 10 for additional information.

    13

NOTE
6 – RELATED PARTY TRANSACTIONS

South
Salinas Project – Related Party

Upon
its formation, the Company acquired from Trio LLC a majority working interest in the South Salinas Project and engaged the services of
certain members of Trio LLC to manage the Company’s assets (see Note 1 and Note 5). Trio LLC operates the South Salinas Project
on behalf of the Company, and as operator, conducts and has full control of the operations within the constraints of the Joint Operating
Agreement, and acts in the capacity of an independent contractor. Trio LLC currently holds a 3.8% working interest in the South Salinas
Project and the Company holds an 85.775% working interest. The Company provides funds to Trio LLC to develop and operate the assets in
the South Salinas Project; such funds are classified in the short-term asset/liability section of the balance sheet as Advance to Operators/Due
to Operators, respectively. As of April 30, 2025 and October 31, 2024, the balance of the Due to Operators account is $70,492 and $103,146,
respectively.

McCool
Ranch Oil Field Asset Purchase – Related Party

On
October 16, 2023, the Company entered into the McCool