Trio Petroleum (TPET) - 2025 Q1 - Quarterly Report

Revenue Generation - Trio Petroleum Corp. recognized its first revenues in the fiscal quarter ended April 30, 2024, following the restart of operations at the McCool Ranch Oil Field on February 22, 2024[154]. - Revenues for the three months ended January 31, 2025, were $10,819, an increase from zero revenue in the prior period, with approximately 180 barrels of oil sold[188]. Project Developments - The company holds an approximate 85.775% working interest in the South Salinas Project, with a net revenue interest of approximately 68.62% after royalties[155]. - Trio Petroleum Corp. acquired a 22% working interest in the McCool Ranch Oil Field, which includes six oil wells and related infrastructure, effective October 1, 2023[158]. - The Asphalt Ridge Project is estimated to contain 10.8 billion barrels of bitumen in the Uintah Basin deposits, with the company acquiring an option for a 20% working interest in certain leases[166]. - The company plans to develop 240 acres at Asphalt Ridge with an estimated 119 wells using advanced cyclic-steam production techniques[169]. - The company is assessing the viability of restarting the HH-3 and HH-4 wells, which will have horizontal completions similar to the HH-1 well[162]. - The Asphalt Ridge Project has secured necessary permits to commence drilling, with an arrangement for an 8% state royalty being pursued[168]. - The company is evaluating the potential for additional horizontal wells at McCool Ranch, with an estimated capacity for approximately 22 more wells[164]. - The company commenced drilling activities at Asphalt Ridge, with the first well reaching a total depth of 1,020 feet and finding a 100-foot tar-sand pay zone[171]. - Oil production has started using downhole heaters, with plans to transition to advanced cyclic-steam and steam-drive methods[171]. Financial Performance - The company reported a net loss of$ 1,615,525 for the year ended January 31, 2025, with an accumulated deficit of $21,689,204[174]. - General and administrative expenses decreased by approximately$ 246,144, or 25.7%, compared to the prior period[187]. - The company has a working capital of $547,056 as of January 31, 2025, indicating liquidity challenges[174]. - As of January 31, 2025, the company's working capital improved to$ 547,056 from a deficiency of $(2,025,480) as of October 31, 2024, driven by an increase in current assets to$ 2,015,019 and a decrease in current liabilities to $1,467,963[195]. - For the three months ended January 31, 2025, net cash used in operating activities was$ (920,485), compared to $(774,431) for the same period in 2024, primarily due to a net loss of$ 1,615,525[198]. - Cash provided by financing activities surged to $2,756,520 for the three months ended January 31, 2025, compared to$ 84,022 in 2024, mainly from approximately $3.5 million in net proceeds from the issuance of common shares[201]. - The company reported a net change in cash of$ 1,675,256 for the three months ended January 31, 2025, contrasting with a decrease of $(1,213,176) in the same period of 2024[197]. - Cash used in investing activities decreased to$ 160,779 for the three months ended January 31, 2025, from $522,767 in 2024, reflecting reduced capital expenditures[200]. Capital and Funding - The company has raised a total of$ 2,371,500 through convertible note financing in October and December 2023[174]. - The company has until April 10, 2025, to pay an additional $1,775,000 to exercise an option for a 17.75% working interest in the Asphalt Ridge leases[185]. - The company anticipates requiring additional capital funding to cover development and operating costs until revenue streams are fully implemented[177]. Asset Management - A Carbon Capture and Storage project is being initiated as part of the South Salinas Project, which could permanently store vast volumes of CO2[173]. - The company has paid a total of$ 225,000 to HSO for infrastructure costs related to the ARLO Agreement, obtaining a 2.25% interest in the leases as of January 31, 2025[208]. - The company holds various leases related to unproved properties, with ongoing compliance in rental payments, including $30 per acre per year for certain leases[204]. - The company plans to utilize six wellbores acquired in the South Salinas Project for future production and development activities, with associated asset retirement obligations recorded[218]. Reserves and Future Expectations - Trio Petroleum Corp. expects to add the reserve value of the McCool Ranch Field to its reserve report after further observation of the restarted oil production[164]. - The company expects to add the reserve value of producing fields to its reserve report after further observation and review of oil production[214].