Trio Petroleum Corp Enters Farmout Agreement to Earn Canadian Assets

What Happened

• On September 21, 2026 Trio Petroleum Corp (TPET) filed an 8-K disclosing that its wholly owned subsidiary, Trio Petroleum Canada, Corp., entered into a Farmout Agreement with Croverro Energy Ltd. on or about September 17, 2026. Under the agreement Trio Canada can earn working interests in specified petroleum and natural gas properties in Alberta and Saskatchewan by funding up to seven earning programs. Croverro must notify Trio Canada of the first (Initial) Earning Program by October 1, 2026.

Key Details

• Up to seven Earning Programs are available; each program is intended to drill and equip two test wells.
• If Trio participates in the Initial Earning Program it must pay a $450,000 prospect fee; if it declines the Initial Program the agreement is terminated.
• Trio must pay 100% of drilling, completion and equipping costs for any Earning Program it elects to participate in.
• Upon completion of an Earning Program, Trio will receive 80% of Croverro’s pre-earning work interests (including the test wells) until Trio recovers its Earning Costs, after which Trio’s share generally drops to 60%.
• Croverro will act as initial operator; Trio may take operatorship in the event of a change of control or termination of key Croverro personnel. Croverro will reimburse a pro rata share of the prospect fee for any Earning Programs Trio does not participate in.

Why It Matters

• The deal creates a clear pathway for Trio to add Canadian drilling assets and upside by funding exploration programs, but it also creates near‑term cash commitments: a $450,000 prospect fee (if Trio elects the Initial Program) plus 100% of drilling and completion costs for chosen programs. Investors should note the timing (notice by October 1, 2026 for the Initial Program) and that Trio will not initially control operations. The arrangement could increase production and reserves if wells are successful, but it requires Trio to fund exploration capital and assumes Croverro’s initial operatorship and the cost‑recovery mechanics described in the agreement.