Trio Petroleum Reports First Revenue of $10,819 and Improved Financial Position

Trio Petroleum Corp. reported its financial results for the three months ended January 31, 2025, revealing a net revenue of $10,819, marking the company's first revenue generation since its inception. This figure represents a significant milestone for the company, which had no revenue during the same period in the previous year. Despite this positive development, Trio Petroleum recorded a net loss of $1,615,525, a slight improvement from the net loss of $1,702,048 reported in the prior year, indicating a reduction in losses of approximately 5.1%.

The company's operating expenses for the quarter totaled $1,227,276, down 15.4% from $1,450,597 in the previous year. This decrease was primarily driven by a reduction in exploration expenses, which fell by 70.8% to $24,721, and a 25.7% decrease in general and administrative expenses, which amounted to $711,546. However, stock-based compensation expenses increased by 20.3% to $490,314, reflecting ongoing investments in employee incentives.

In terms of strategic developments, Trio Petroleum has made significant progress in its operational footprint. The company has successfully restarted production at the McCool Ranch Oil Field, acquiring a 21.9% working interest in the field in October 2023. Additionally, Trio Petroleum has entered into a leasehold acquisition and development option agreement for the Asphalt Ridge Project in Utah, which could further enhance its asset portfolio. As of January 31, 2025, the company holds a 2.25% interest in the Asphalt Ridge leases, with plans to potentially increase this stake.

Trio Petroleum's financial position has improved, with current assets rising to $2,015,019 from $565,219 at the end of the previous fiscal period. Current liabilities also decreased significantly from $2,590,699 to $1,467,963, resulting in a working capital of $547,056, a notable turnaround from a working capital deficiency of $2,025,480. The company’s cash flow from financing activities was particularly strong, with net proceeds of $2,756,520 primarily from the issuance of common shares under an at-the-market agreement.

Looking ahead, Trio Petroleum faces challenges related to its accumulated deficit of $21,689,204 and the need for additional capital to fund ongoing operations and development projects. The company has indicated that it will require further financing to support its growth strategy, which includes drilling additional wells and enhancing production capabilities. Management remains optimistic about the potential for revenue generation as operations ramp up, but acknowledges the uncertainty surrounding future financing and market conditions.