Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 52

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 1
Chunk 52
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were formed to initially acquire an approximate 82.75% working interest (which was subsequently increased to an approximate 85.775% working
interest) from Trio LLC (“Trio LLC”) in the large, approximately 9,300-acre South Salinas Project that is located
in Monterey County, California, and subsequently partner with certain members of Trio LLC’s management team to develop and operate
those assets. We hold an approximate 68.62% interest after the application of royalties (“net revenue interest”) in the South
Salinas Project. Trio LLC holds an approximate 3.8% working interest in the South Salinas Project. We and Trio LLC are separate and distinct
companies.

Initially, California was a significant part of our
geographic focus; however, due to rising drilling costs and the negative impact on potential profitability, we have strategically shifted
our efforts beyond California to pursue more economically viable opportunities. This transition is reflected in our acquisition of an
interest in the Asphalt Ridge Project in Uintah County, Utah, as well as our recent acquisition of additional oil and gas assets in the
prolific Lloydminster, Saskatchewan heavy oil region.

25

South
Salinas Project

Efforts
to obtain from Monterey County conditional use permits and a full field development permit for the South Salinas Project are progressing.
Efforts to obtain from the California Geologic Energy Management Division (“CalGEM”) and from the California Water Boards
a permit for a water disposal project at the South Salinas Project are also progressing. In the meantime, the Company recently determined
that existing permits allow production testing to continue at the HV-3A discovery well at Presidents Field and, consequently, testing
operations were restarted at this well on March 22, 2024. Oil production from this well has occurred and the Company is assessing steps to attempt to increase the well’s gross production rate, for example by adding up to 650
feet of additional perforations in the oil zone and/or acidizing the well for borehole cleanup. First oil sales from the HV-3A well occurred
in the third calendar quarter of 2024 but is currently idled as we further discussions with local oil and gas companies to joint venture the project.

McCool
Ranch Oil Field 

On
October 16, 2023, we entered into a Purchase and Sale Agreement with Trio LLC (the “McCool Ranch Purchase Agreement”)
pertaining to the McCool Ranch Oil Field. Pursuant to this agreement, effective October