Leases

6 Months Ended

Dec. 31, 2024

Note 4 – Leases

As a Lessee

The Group’s operating lease activities consist of leases for office premises.

Commencing July 1, 2024, the Group entered into a new lease agreement with Drecom Pty Ltd ATF English Family

Trust for their office premises in Darwin, Australia. The term of the lease is three years, with an option to further renew the

lease for two years.

On October 1, 2023, the Group entered into a new lease agreement with Lendlease IMT (OITST ST) Pty Ltd for

their office premises in Barangaroo, Australia. The term of the lease is four years, with no option to renew.

On September 9, 2022, Sweetpea Petroleum Pty Ltd (“Sweetpea”), a wholly owned subsidiary of Tamboran, entered

into a drilling contract with Helmerich & Payne International Holdings LLC (“H&P”) for H&P to assist the Group in

carrying out its onshore drilling operations in Australia. The drilling contract grants Tamboran the right to use the drilling

rig from H&P over the non-cancellable contract term of 25 months starting from July 1, 2023. Under the terms of the

agreement, the Group has the right to place the drilling rig on a temporary suspension rate between wells for a period up to

270 days (the “Gap Period”). For each day of the Gap Period consumed, additional days are added to the fixed minimum

term. As of December 31, 2024, the end date of the drilling contract for the current rig is mid-July 2026. The drilling

contract is recognized as a finance lease under ASC 842 (“H&P Rig Lease”).

The present value of the minimum future obligations was calculated based on an interest rate of 13.5% p.a., which

was recognized in finance lease liabilities in the condensed consolidated balance sheet.

The following table presents the classification and location of the Group’s leases on the condensed consolidated

balance sheets:


	December 31, 2024	June 30, 2024
Right-of-use assets:
Operating lease right-of-use assets	$833,824	$962,052
Finance lease right-of-use assets	15,632,023	20,697,452
	16,465,847	21,659,504

Lease liabilities:
Current portion of operating lease obligations	279,401	397,999
Non-current portion of operating lease obligations	573,239	587,250
Current portion of finance lease obligations	15,205,744	12,767,400
Non-current portion of finance lease obligations	6,618,699	14,141,713
	$22,677,083	$27,894,362

For the three months and six months ended December 31, 2024, and 2023, the components of the lease costs were as

follows:


	Three months ended December 31,		Six months ended December 31,
	2024	2023	2024	2023
Operating leases:
Operating lease cost charged to profit and loss	$130,028	$141,471	$287,174	$211,985

Finance leases:
Interest on lease liabilities	692,582	762,171	1,488,506	1,578,081
Depreciation on right-of-use assets	2,532,714	2,927,616	5,065,429	6,025,148
Total finance lease cost	3,225,296	3,689,787	6,553,935	7,603,229
Less: Lease cost capitalized to unproved properties	(3,225,296)	(3,689,787)	(6,553,935)	(7,603,229)
Finance lease cost charged to profit and loss	$—	$—	$—	$—

The following table presents the cash flow information related to lease payments for the six months ended

December 31, 2024, and 2023:


	Six months ended December 31,
	2024	2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$287,174	$211,985
Financing cash flows for finance leases	5,503,668	1,721,511
	$5,790,842	$1,933,496

The following table presents supplemental information for the Group’s non-cancellable leases for the six months

ended December 31, 2024, and 2023:


	Six months ended December 31,
	2024	2023
Operating leases:
Weighted-average remaining lease term	2.91	3.02
Weighted-average incremental borrowing rate	11.50%	9.91%
Finance leases:
Weighted-average remaining lease term	1.58	1.83
Weighted-average incremental borrowing rate	13.45%	13.45%

As of December 31, 2024, the Group’s undiscounted minimum cash payment obligations for its lease liabilities are as

follows:


As at December 31, 2024	Operating leases	Finance leases
Fiscal year ending June 30, 2025 (excluding six months period from July 1, 2024 to December 31, 2024)	$203,783	$8,775,073
Fiscal year ending June 30, 2026	320,503	14,417,500
Fiscal year ending June 30, 2027	330,808	632,000
Thereafter	159,538	—
Total lease payments	1,014,632	23,824,573
Less: Imputed interest	(161,992)	(2,000,130)
Present value of lease liabilities1	$852,640	$21,824,443

1 Includes both current and long-term portion of the lease liabilities.

As a Lessor

On October 15, 2023, the Group entered into an agreement with a third party to sublease its former office premises in

Manly, Australia. The commencement date of the sublease was October 1, 2023, with a lease term of 17 months. Sublease

income for the three months and six months ended December 31, 2024, was $92,669 and $174,306, respectively, and is

included within “Other expenses, net” on the Group’s condensed consolidated statements of operations and comprehensive

loss. There have been no indications of impairment related to the underlying right-of-use asset.