Leases

9 Months Ended

Mar. 31, 2025

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 March 31, 2025, the end date of the drilling contract for the current rig is mid-April 2027. 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 12.76% 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:


	March 31, 2025	June 30, 2024
Right-of-use assets:
Operating lease right-of-use assets	$736,944	$962,052
Finance lease right-of-use assets	18,864,368	20,697,452
	19,601,312	21,659,504

Lease liabilities:
Current portion of operating lease obligations	243,058	397,999
Non-current portion of operating lease obligations	511,432	587,250
Current portion of finance lease obligations	13,760,869	12,767,400
Non-current portion of finance lease obligations	12,358,826	14,141,713
	$26,874,185	$27,894,362

For the three months and nine months ended March 31, 2025, and 2024, the components of the lease costs were as

follows:


	Three months ended March 31,		Nine months ended March 31,
	2025	2024	2025	2024
Operating leases:
Operating lease cost charged to profit and loss	$126,954	$142,710	$414,128	$354,695

Finance leases:
Interest on lease liabilities	784,804	743,963	2,273,310	2,322,044
Depreciation on right-of-use assets	2,227,380	2,780,940	7,292,809	8,806,088
Total finance lease cost	3,012,184	3,524,903	9,566,119	11,128,132
Less: Lease cost capitalized to unproved properties	(3,012,184)	(3,524,903)	(9,566,119)	(11,128,132)
Finance lease cost charged to profit and loss	$—	$—	$—	$—

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

March 31, 2025, and 2024:


	Nine months ended March 31,
	2025	2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$414,128	$354,695
Financing cash flows for finance leases	6,507,928	3,723,300
	$6,922,056	$4,077,995

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

ended March 31, 2025, and 2024:


	Nine months ended March 31,
	2025	2024
Operating leases:
Weighted-average remaining lease term	2.83	2.86
Weighted-average incremental borrowing rate	11.84%	10.15%
Finance leases:
Weighted-average remaining lease term	2.08	1.92
Weighted-average incremental borrowing rate	12.76%	13.10%

As of March 31, 2025, the Group’s undiscounted minimum cash payment obligations for its lease liabilities are as

follows:


As of March 31, 2025	Operating leases	Finance leases
Fiscal year ending June 30, 2025 (excluding nine months period from July 1, 2024 to March 31, 2025)	$78,648	$3,727,500
Fiscal year ending June 30, 2026	322,147	14,417,500
Fiscal year ending June 30, 2027	332,505	11,297,000
Thereafter	160,355	—
Total lease payments	893,655	29,442,000
Less: Imputed interest	(139,165)	(3,322,305)
Present value of lease liabilities1	$754,490	$26,119,695

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 “Manly lease”). The commencement date of the sublease was October 1, 2023, with a lease term of

17 months. The Manly lease, and sublease expired on March 10, 2025 with no renewal. Sublease income for the three

months and nine months ended March 31, 2025, was $68,207 and $239,811, respectively, and is included within “Other

income (expense), 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.