Leases

3 Months Ended

Sep. 30, 2025

Note 4 – Leases

As a Lessee

The Group’s operating lease activities consist of leases for office premises and modular buildings at the SPCF site.

Commencing on August 14, 2025, the Group entered into a new lease arrangement with Northern Transportables for

the hire of modular buildings and related equipment (“Stage 1 and 2 Hire Goods”). The term of the lease arrangement is

seventeen months, with an option to further renew the lease (as needed).

Commencing May 24, 2025, the Group entered into a new lease arrangement with Mackwell 33 Queen Pty Ltd for

their office premises in Brisbane, Australia. The term of the lease is five years.

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 original Gap Period consumed, and subsequent suspension periods

negotiated, additional days are added to the fixed minimum term. As of September 30, 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 (in thousands):


	September 30, 2025	June 30, 2025
Right-of-use assets:
Operating lease right-of-use assets	$4,199	$1,549
Finance lease right-of-use assets	14,144	16,544
	18,343	18,093

Lease liabilities:
Current portion of operating lease obligations	2,472	391
Non-current portion of operating lease obligations	1,795	1,175
Current portion of finance lease obligations	14,782	15,307
Non-current portion of finance lease obligations	6,561	9,523
	$25,610	$26,396

For the three months ended September 30, 2025, and 2024, the components of the lease costs were as follows (in

thousands):


	Three months ended September 30,
	2025	2024
Operating leases:
Operating lease cost charged to profit and loss	$138	$157

Finance leases:
Interest on lease liabilities	668	796
Depreciation on right-of-use assets	2,321	2,533
Total finance lease cost	2,988	3,329
Less: Lease cost capitalized to unproved properties	(2,988)	(3,329)
Finance lease cost charged to profit and loss	$—	$—

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

September 30, 2025, and 2024 (in thousands):


	Three months ended September 30,
	2025	2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$138	$157
Financing cash flows for finance leases	3,076	—
	$3,215	$157

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

ended September 30, 2025, and 2024:


	Three months ended September 30,
	2025	2024
Operating leases:
Weighted-average remaining lease term	2.16	3.57
Weighted-average incremental borrowing rate	13.57%	13.50%
Finance leases:
Weighted-average remaining lease term	1.58	1.83
Weighted-average incremental borrowing rate	12.76%	13.45%

As of September 30, 2025, the Group’s undiscounted minimum cash payment obligations for its lease liabilities are

as follows (in thousands):


As of September 30, 2025	Operating leases	Finance leases
Fiscal year ending June 30, 2026 (excluding three months period from July 1, 2025 to September 30, 2025)	$2,204	$11,954
Fiscal year ending June 30, 2027	1,844	11,297
Fiscal year ending June 30, 2028	341	—
Thereafter	477	—
Total lease payments	4,866	23,251
Less: Imputed interest	(599)	(1,908)
Present value of lease liabilities1	$4,267	$21,343

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