Trio Petroleum (TPET) risk factors, FY2024 10-K

Risks Relating to Our Business

1. 01We may face delays and/or obstacles in project development due to difficulties in obtaining necessary permits from federal, state, county and/or local agencies, which may materially affect our business
2. 02Due to our contractor model for drilling operations, we will be vulnerable to any inability to engage one or more drilling rigs and associated drilling personnel
3. 03TPET and Lafayette Energy Corp (“LEC”) both have equity interests in the Asphalt Ridge Project, Utah. TPET and Trio LLC both have equity interests in the South Salinas Project and the McCool Ranch Oil Field, California
4. 04We are operating in a highly capital-intensive industry, and any sales of produced oil and gas may be insufficient to fund, sustain, or expand revenue-generating operations
5. 05We face substantial uncertainties in estimating the characteristics of our assets, so you should not place undue reliance on any of our measures
6. 06The drilling of wells is speculative, often involving significant costs that may be more than our estimates, and drilling may not result in any discoveries or additions to our future production or future reserves, or it may result in disproving or diminishing our current reserves
7. 07We have been an exploration stage entity and our future performance is uncertain
8. 08We are dependent on certain members of our management and technical team
9. 09Seismic studies do not guarantee that oil or gas is present or, if present, will produce in economic quantities
10. 10The potential lack of availability of, or cost of, drilling rigs, equipment, supplies, personnel, and crude oil field services could adversely affect our ability to execute on a timely basis exploration and development plans within any budget
11. 11Our business plan requires substantial additional capital, which we may be unable to raise on acceptable terms in the future, which may in turn limit our ability to develop our exploration, appraisal, development and production activities
12. 12A substantial or extended decline in global and/or local oil and/or natural gas prices may adversely affect our business, financial condition and results of operations
13. 13Our inability to access appropriate equipment and infrastructure in a timely manner may hinder our access to oil and natural gas markets or delay our future oil and natural gas production
14. 14We are subject to numerous risks inherent to the exploration and production of oil and natural gas
15. 15We are subject to drilling and other operational environmental hazards
16. 16The development schedule of oil and natural gas projects, including the availability and cost of drilling rigs, equipment, supplies, personnel and oilfield services, is subject to delays and cost overruns
17. 17Participants in the oil and gas industry are subject to numerous laws that can affect the cost, manner or feasibility of doing business
18. 18We and our operations are subject to numerous environmental, health and safety regulations which may result in material liabilities and costs
19. 19Our operations may be dependent on sources of electricity and/or natural gas that may be unreliable or costly
20. 20We expect continued and increasing attention to climate change and energy transition issues and associated regulations to constrain and impede the oil/gas industry
21. 21We may incur substantial losses and become subject to liability claims as a result of future oil and natural gas operations, for which we may not have adequate insurance coverage
22. 22We may be subject to risks in connection with acquisitions and the integration of significant acquisitions may be difficult
23. 23If we fail to realize the anticipated benefits of a significant acquisition, our results of operations may be adversely affected
24. 24The requirements of being a public company may strain our resources, result in more litigation and divert management’s attention
25. 25Our business and results of operations may be materially adversely effected by inflationary pressures

Risks Relating to Our Securities

1. 26There can be no assurance that an active and liquid trading market for our common stock will continue or that we will be able to continue to comply with the NYSE American’s continued listing standards
2. 27If we are not able to comply with the applicable continued listing requirements or standards of the NYSE American, our common stock could be delisted from the NYSE American
3. 28Our share price may be volatile, and purchasers of our common stock could incur substantial losses
4. 29Certain of our executive officers and directors have significant duties with, and spend significant time serving, entities that may compete with us in seeking acquisitions and business opportunities and, accordingly, may have conflicts of interest in allocating time or pursuing business opportunities
5. 30For as long as we are an emerging growth company, we will not be required to comply with certain reporting requirements, including those relating to accounting standards and disclosure about our executive compensation, that apply to other public companies
6. 31We do not intend to pay dividends on our common stock