Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 2367

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 10
Chunk 2367
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 various leases related to the unproved properties of the South Salinas Project (see Note 6); 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 the Company 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, the Company
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 operations and oil production at the HV-3A well maintains 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, the Company is required to make delay rental payments of $30/acre per year. The Company is currently in compliance
with this requirement and has paid in advance the delay rental payment for the period from October 2023 through October 2024.

    F-16

The
Company holds 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, the Company 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; the Company is required to make rental
payments of $25/acre per year. The Company is currently in compliance with this requirement and has paid in advance the rental payment
for the period February 2024 through February 202