v3.25.1
SUBSEQUENT EVENTS
6 Months Ended
Apr. 30, 2025
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 10 – SUBSEQUENT EVENTS

 

In accordance with ASC 855 – Subsequent Events, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before condensed consolidated financial statements are issued, the Company has evaluated all events and transactions that occurred after April 30, 2025, through the date the condensed consolidated financial statements were issued. Except for the following, there are no subsequent events identified that would require disclosure in the condensed consolidated financial statements.

 

Letter of Intent with HSO

 

On May 15, 2025, the Company entered into a non-binding Letter of Intent (LOI) with HSO for the potential acquisition of 2,000 acres at P.R. Spring, Uintah Basin, Utah. Under the LOI, the Company would issue 1,492,272 restricted shares and pay $850,000 at closing, subject to execution of definitive agreements. Upon signing the LOI, the Company made a non-refundable $150,000 Option Payment to HSO. The LOI requires evidence of a minimum sustained production rate of 40 barrels per day for a continuous 30-day period from two wells at Asphalt Ridge by May 15, 2026, or the LOI will expire unless extended.

 

Asphalt Ridge Leasehold Option Not Exercised

 

Effective as of May 10, 2025, the Company’s option to acquire the remaining 17.75% working interest in the initial 960 acres of the Asphalt Ridge Leases expired, as the Company did not exercise the option before the deadline. As a result, the Company has forfeited any further rights to acquire this interest but will retain its existing 2.25% interest in the leases.

 

Second Closing of Novacor Acquisition

 

On May 21, 2025, the Second Closing of the Novacor Acquisition was consummated; title to certain of the assets was delivered to the Buyer, and the Buyer delivered to the Seller $325,000, in cash, reflecting the $325,000 payable such assets.

 

Abandonment of McCool Ranch Properties

 

As of May 27, 2025, the Company and Trio LLC executed a Termination Agreement, pursuant to which the Company terminated all operations and abandoned all leases at this location. Because the conditions leading to this decision existed as of April 30, 2025, this event qualifies as a recognized subsequent event under ASC 855-10-25-1 and has been reflected in the financial statements for the period ended April 30, 2025. Accordingly, all capitalized costs related to the acquisition, refurbishment, and production restart—including costs for support equipment and facilities—totaling $500,614 have been written off and expensed in the statement of operations for the period ended April 30, 2025.