Trio Petroleum Narrows Losses, Boosts Cash Amid Strategic Shifts

TL;DR

**TPET is still burning cash, but the reduced loss and new Canadian assets offer a glimmer of hope for a speculative play.**

AI Summary

Trio Petroleum Corp (TPET) reported a net loss of $4,566,000 for the nine months ended July 31, 2025, a significant improvement from the $7,926,554 net loss in the prior-year period. Revenue for the nine months ended July 31, 2025, increased to $226,485 from $135,975 in the same period of 2024, driven by initial revenues from Saskatchewan assets. Gross profit, however, slightly decreased to $118,734 from $135,975 year-over-year. The company's cash position improved substantially, rising to $584,365 as of July 31, 2025, from $285,945 at October 31, 2024. This was largely due to $3,475,648 in proceeds from the issuance of common shares via an ATM agreement. Total assets grew to $13,031,736 from $11,684,338, while total liabilities decreased to $1,609,454 from $2,641,790. Key business changes include the abandonment of the McCool Ranch Oil Field in May 2025 and the formation of Trio Petroleum Canada, Corp. on March 28, 2025, to acquire assets in the Lloydminster, Saskatchewan heavy oil region.

Why It Matters

This 10-Q reveals Trio Petroleum's ongoing transition, with a notable reduction in net losses and a stronger cash position, which could signal improved financial stability for investors. The shift from the McCool Ranch Oil Field to new Canadian assets in Saskatchewan indicates a strategic pivot, potentially impacting future revenue streams and competitive positioning against larger, more established oil and gas players. Employees in California may face uncertainty following the McCool Ranch abandonment, while new opportunities could arise in Canada. Customers might see a more diversified supply chain if the Canadian operations scale successfully, though the company remains a minor player in the broader energy market.

Risk Assessment

Risk Level: high — Despite a reduced net loss, Trio Petroleum Corp reported a net loss of $4,566,000 for the nine months ended July 31, 2025, and an accumulated deficit of $24,639,679. The company also incurred a significant loss on abandonment of oil and gas properties of $611,763, indicating operational challenges and asset write-downs.

Analyst Insight

Investors should monitor TPET's progress in the Saskatchewan region closely, as this is the new primary revenue driver. Given the high-risk profile and ongoing losses, a speculative position might be considered only after sustained positive cash flow from operations is demonstrated.

Financial Highlights

debt To Equity

0.26

revenue

$226,485

operating Margin

N/A

total Assets

$13,031,736

total Debt

$1,609,454

net Income

-$4,566,000

eps

N/A

gross Margin

52.4%

cash Position

$584,365

revenue Growth

+66.6%

Revenue Breakdown

Key Numbers

• $4,566,000 — Net Loss (for the nine months ended July 31, 2025, an improvement from $7,926,554 in 2024)
• $226,485 — Revenue (for the nine months ended July 31, 2025, up from $135,975 in 2024)
• $584,365 — Cash (as of July 31, 2025, up from $285,945 at October 31, 2024)
• $3,475,648 — Proceeds from ATM agreement (contributed to increased cash flow from financing activities)
• $13,031,736 — Total Assets (as of July 31, 2025, up from $11,684,338 at October 31, 2024)
• $1,609,454 — Total Liabilities (as of July 31, 2025, down from $2,641,790 at October 31, 2024)
• $611,763 — Loss on abandonment of oil and gas properties (incurred for the nine months ended July 31, 2025)
• 8,440,849 — Common Shares Outstanding (as of September 10, 2025)

Key Players & Entities

• Trio Petroleum Corp (company) — registrant
• Trio Petroleum Canada, Corp. (company) — wholly-owned subsidiary
• Novacor Exploration Ltd. (company) — asset seller
• Robin Ross (person) — CEO of Trio Petroleum and Trio Canada
• Greg Overholtzer (person) — CFO of Trio Petroleum and Trio Canada
• South Salinas Project (company) — flagship asset
• McCool Ranch Oil Field (company) — abandoned asset
• Asphalt Ridge Project (company) — oil and gas asset
• NYSE American LLC (regulator) — exchange where common stock is registered
• SEC (regulator) — Securities and Exchange Commission

FAQ

Risk Factors

• Dependence on Oil and Gas Prices [high — operational]: The company's financial performance is highly sensitive to fluctuations in global oil and gas prices. A significant decline in these prices could materially and adversely affect its ability to fund operations, service debt, and achieve profitability.
• Exploration and Development Risks [high — operational]: Trio Petroleum is engaged in the exploration and development of oil and gas properties, which are inherently risky. There is no assurance that exploration efforts will result in the discovery of commercially viable quantities of oil or gas, or that development projects will be successful.
• Need for Additional Financing [medium — financial]: The company has a history of net losses and may require additional capital to fund its ongoing operations and future development plans. The ability to secure such financing on favorable terms is not guaranteed.
• Environmental Regulations [medium — regulatory]: The oil and gas industry is subject to extensive environmental regulations. Compliance with these regulations can be costly and time-consuming, and failure to comply can result in significant fines and penalties.
• Abandonment of Properties [medium — operational]: The company incurred a loss of $611,763 on the abandonment of oil and gas properties (McCool Ranch Oil Field) in the nine months ended July 31, 2025, indicating potential challenges in asset viability or strategic shifts.

Industry Context

Trio Petroleum operates within the volatile oil and gas exploration and production sector. The industry is characterized by significant capital requirements, price volatility, and increasing regulatory scrutiny, particularly concerning environmental standards. Companies in this space often rely on strategic acquisitions and efficient resource development to achieve profitability.

Regulatory Implications

The company faces ongoing regulatory compliance burdens related to environmental protection and resource extraction. Changes in environmental policies or stricter enforcement could increase operating costs and impact project feasibility. The abandonment of properties also highlights the need for careful asset management and regulatory adherence.

What Investors Should Do

1. Monitor revenue growth drivers and cost of revenue.
2. Assess the sustainability of cash position improvements.
3. Track progress and profitability of Canadian operations.

Key Dates

• 2025-05-31: Abandonment of McCool Ranch Oil Field — Indicates a strategic shift or challenges with specific assets, resulting in a $611,763 loss for the period.
• 2025-03-28: Formation of Trio Petroleum Canada, Corp. — Marks the strategic expansion into the Lloydminster, Saskatchewan heavy oil region, driving new revenue streams.
• 2025-07-31: Nine Months Ended Financial Reporting — Shows improved net loss ($4,566,000 vs $7,926,554) and increased revenue ($226,485 vs $135,975), alongside a strengthened cash position ($584,365).

Glossary

ATM agreement

At-the-Market offering, a type of equity offering where a company sells shares into the open market over a period of time. (The company raised $3,475,648 through an ATM agreement, significantly boosting its cash reserves.)

Gross Profit

Revenue minus the cost of goods sold. (Trio Petroleum's gross profit slightly decreased to $118,734 from $135,975, despite higher revenues, indicating increased cost of revenue relative to sales.)

Debt-to-Equity Ratio

A financial ratio indicating the relative proportion of all debt and equity used to finance a company's assets. (The ratio improved to approximately 0.26 as of July 31, 2025, reflecting a decrease in liabilities relative to equity.)

Year-Over-Year Comparison

Trio Petroleum Corp. has shown a mixed performance compared to the prior year. Revenue for the nine months ended July 31, 2025, increased by 66.6% to $226,485 from $135,975, driven by new Canadian assets. However, gross profit saw a slight decrease, and the net loss narrowed to $4,566,000 from $7,926,554. Total assets grew, while total liabilities significantly decreased, improving the balance sheet. The company's cash position more than doubled, largely due to equity financing.

Key Financial Figures

• $0.0001 — ch registered Common Stock, par value $0.0001 per share TPET NYSE American LLC

Filing Documents

• form10-q.htm (10-Q) — 1333KB
• ex4-1.htm (EX-4.1) — 2KB
• ex31-1.htm (EX-31.1) — 16KB
• ex31-2.htm (EX-31.2) — 16KB
• ex32-1.htm (EX-32.1) — 8KB
• ex4-1_001.jpg (GRAPHIC) — 463KB
• ex4-1_002.jpg (GRAPHIC) — 134KB
• 0001493152-25-013189.txt ( ) — 8382KB
• tpet-20250731.xsd (EX-101.SCH) — 52KB
• tpet-20250731_cal.xml (EX-101.CAL) — 54KB
• tpet-20250731_def.xml (EX-101.DEF) — 294KB
• tpet-20250731_lab.xml (EX-101.LAB) — 462KB
• tpet-20250731_pre.xml (EX-101.PRE) — 381KB
• form10-q_htm.xml (XML) — 1110KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 3 ITEM 1.

Financial Statements

Financial Statements 3 Condensed Consolidated Balance Sheets as of July 31, 2025 (unaudited) and October 31, 2024 3 Condensed Consolidated Statements of Operations (unaudited) for the Three and Nine Months Ended July 31, 2025 and 2024 4 Condensed Consolidated Statements of Changes in Stockholders' Equity (unaudited) for the Three and Nine Months Ended July 31, 2025 and 2024 5 Condensed Consolidated Statements of Cash Flows (unaudited) for the Nine Months Ended July 31, 2025 and 2024 6 Notes to Unaudited Condensed Consolidated Financial Statements 7 ITEM 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 25 ITEM 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 37 ITEM 4.

Controls and Procedures

Controls and Procedures 37

OTHER INFORMATION

PART II. OTHER INFORMATION 37 ITEM 1.

Legal Proceedings

Legal Proceedings 37 ITEM 1A.

Risk Factors

Risk Factors 37 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 38 ITEM 3. Defaults Upon Senior Securities 38 ITEM 4. Mine Safety Disclosures 38 ITEM 5. Other Information 38 ITEM 6. Exhibits 38

SIGNATURES

SIGNATURES 39 2 PART I. FINANCIAL INFORMATION Item 1. Financial Statements TRIO PETROLEUM CORP CONDENSED CONSOLIDATED BALANCE SHEETS July 31, October 31, 2025 2024 (unaudited) ASSETS Current assets: Cash $ 584,365 $ 285,945 Prepaid expenses 196,400 279,274 Accounts receivable 95,785 - Total current assets 876,550 565,219 Oil and gas properties - not subject to amortization 12,155,186 11,119,119 Total assets $ 13,031,736 $ 11,684,338 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities 1,404,989 1,036,291 Asset retirement obligations - current 2,778 2,778 Convertible note, net of discounts 865 - Due to operators 29,740 103,146 Promissory notes, net of discounts - 742,852 Payable - related party - 115,666 Note payable - related party - 135,000 Deferred consideration payable - - Other current liabilities 117,907 454,966 Total current liabilities 1,556,279 2,590,699 Long-term liabilities: Asset retirement obligations, net of current portion 53,175 51,091 Total non-current liabilities 53,175 51,091 Total liabilities 1,609,454 2,641,790 Commitments and Contingencies (Note 7) - - Stockholders' Equity: Preferred stock, $ 0.0001 par value; 10,000,000 shares authorized; - 0 - shares issued and outstanding at July 31, 2025 and October 31, 2024, respectively - - Common stock, $ 0.0001 par value; 150,000,000 shares authorized; 8,399,839 and 3,203,068 shares issued and outstanding as of July 31, 2025 and October 31, 2024, respectively 840 320 Stock subscription receivable ( 10,010 ) ( 10,010 ) Additional paid-in capital 36,040,611 29,125,917 Accumulated other comprehensive income 30,520 - Accumulated deficit ( 24,639,679 ) ( 20,073,679 ) Total stockholders' equity 11,422,282 9,042,548 Total liabilities and stockholders' equity $ 13,031,736 $ 11,684,338 The accompanying notes are an integral p

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