Trio Petroleum Corp (NYSE American: TPET) announced on September 21, 2026, that its wholly owned subsidiary, Trio Petroleum Canada Corp, has entered into a Farmout Agreement with Croverro Energy Ltd. The agreement grants Trio Canada the right to earn working interests in petroleum and natural gas rights within specific properties in Alberta and Saskatchewan, known as the Farmout Lands.
The transaction is structured as a multi-year development program comprising up to seven earning programs. Each earning program is designed to drill and equip two test wells. Under the terms of the agreement, Trio Canada is required to fund 100% of the drilling, completion, and equipping costs for each program in which it chooses to participate.
Upon the completion of an earning program, Trio Canada will be entitled to 80% of Croverro’s pre-earning work interests in the Farmout Lands. This interest will decrease to 60% once the Earning Costs have been repaid. The agreement stipulates that Trio Canada must pay a prospect fee of $450,000 to participate in the first earning program, known as the Initial Earning Program. The company is given the option to participate in up to six additional earning programs.
Croverro will act as the initial operator for the development program. However, Trio Canada has the right to take over operatorship in the event of a change of control or the termination of key personnel at Croverro. The program includes a development inventory of 14 new multilateral drilling opportunities, consisting of five wells in Alberta and nine wells in Saskatchewan. Additionally, the program includes a re-entry opportunity and an oil-producing property acquisition.
The agreement contains standard covenants and rights, including tag-along rights and rights to areas of mutual interest. A copy of the Farmout Agreement is attached as Exhibit 10.1 to the Form 8-K.
