Trio Petroleum Reports Significant Revenue Decline and Strategic Operational Changes

Trio Petroleum Corp. reported a significant decline in financial performance for the three and six months ended April 30, 2025, compared to the same periods in 2024. The company generated revenues of $23,271 for the three months and $34,090 for the six months, representing decreases of 68.1% and 53.3%, respectively. The drop in revenue is attributed to the cessation of operations at the McCool Ranch Oil Field, which had previously contributed to revenue generation. The company’s net loss for the three months was $1,563,752, a 61.4% improvement from a loss of $4,045,935 in the prior year, while the six-month net loss was $3,179,277, down 44.7% from $5,747,983.

In terms of operational changes, Trio Petroleum has made strategic decisions to abandon certain oil and gas leases, including those at the McCool Ranch Oil Field, due to economic viability concerns. This decision resulted in a write-off of $500,614 in capitalized costs. The company has also focused on expanding its operations in Saskatchewan, Canada, where it has begun generating revenue from newly acquired assets. As of April 30, 2025, the company reported five producing wells in Saskatchewan, with plans to increase production through workovers.

The company’s financial position showed improvement, with total current assets rising to $1,738,678 from $565,219 as of October 31, 2024. Current liabilities decreased to $2,270,661 from $2,590,699, resulting in a working capital deficiency of $531,983, an improvement from a deficiency of $2,025,480. The increase in cash reserves was primarily due to proceeds from the issuance of common shares under an at-the-market agreement. However, the company continues to face challenges, including an accumulated deficit of $23,252,956 and reliance on external financing to sustain operations.

Looking ahead, Trio Petroleum's management has expressed concerns regarding its ability to continue as a going concern, emphasizing the need for additional capital to fund operations and development costs. The company plans to pursue further financing through equity or debt offerings to support its growth strategy. Additionally, the company has entered into a non-binding Letter of Intent for a potential acquisition of oil and gas properties in Utah, which could further enhance its operational footprint. The outlook remains cautious as the company navigates the complexities of the oil and gas market while striving to achieve operational profitability.