Leases

3 Months Ended

Sep. 30, 2026

Leases [Abstract]

Leases

Note 4 – Leases

As a Lessee

Operating Leases

The Group’s operating lease activities consist of leases for office premises and modular buildings at the camp pad

site.

In August 2025, the Group entered into a lease arrangement with Northern Transportables for the hire of modular

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

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

Under the lease arrangement with Northern Transportables, the Group leased additional bunkhouses and

accommodation verandahs (the “Stage 3 Hire of Goods”) commencing from October 2025. The lease has a non-cancellable

minimum term of seven months with an option to further renew the lease (as needed). In line with the lease term for the

Stage 1 and 2 Hire of Goods (see above), the initial lease term for the Stage 3 Hire of Goods was determined to be fifteen

months. In February 2026, the lease was remeasured resulting in a reduction of the lease term to eleven months since

inception to align with the expected completion of the SPCF and a prospective reduction in lease payments for the next

four months to align with the number of beds in use of Stage 3. This resulted in a $0.2 million reduction in the operating

lease ROU asset with a corresponding reduction in operating lease liability. As of September 30, 2026, the lease term for

the Stage 3 Hire of Goods has expired.

The Group also has operating leases primarily for the use of office space in various states and territories across

Australia under non-cancellable lease agreements which expire between 2027 and 2030. Certain of these arrangements

have free rent, escalating rent payment provisions, lease renewal options, and tenant allowances.

Finance Leases

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 initial 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, 2026, the end date of the drilling

contract for the current rig is March 2028 (inclusive of additional days). 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 15.9% per annum,

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, 2026	June 30, 2026
Right-of-use assets:
Operating lease right-of-use assets	$1,946	$2,705
Finance lease right-of-use assets	12,245	14,345
	14,191	17,050

Lease liabilities:
Current portion of operating lease obligations	1,232	1,897
Non-current portion of operating lease obligations	905	1,018
Current portion of finance lease obligations	17,059	14,410
Non-current portion of finance lease obligations	5,502	8,354
	$24,698	$25,679

For the three months ended September 30, 2026, and 2025, the components of the lease costs were as follows (in

thousands):


	Three months ended September 30,
	2026	2025
Operating leases:
Operating lease cost charged to profit and loss	$1,067	$138

Finance leases:
Interest on lease liabilities	779	668
Depreciation on right-of-use assets	2,097	2,320
Total finance lease cost	2,876	2,988
Less: Lease cost capitalized to unproved properties	(2,876)	(2,988)
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, 2026, and 2025 (in thousands):


	Three months ended September 30,
	2026	2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$1,489	$138
Financing cash flows for finance leases	735	3,076
	$2,224	$3,214

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

ended September 30, 2026, and 2025:


	Three months ended September 30,
	2026	2025
Operating leases:
Weighted-average remaining lease term	2.50	2.16
Weighted-average incremental borrowing rate	15.46%	13.57%
Finance leases:
Weighted-average remaining lease term	1.50	1.58
Weighted-average incremental borrowing rate	15.88%	12.76%

As of September 30, 2026, the Group’s undiscounted minimum cash payment obligations for its lease liabilities are

as follows (in thousands):


As of September 30, 2026	Operating leases	Finance leases
Fiscal year ending June 30, 2027 (excluding three-month period from July 1, 2026 to September 30, 2026)	$1,272	$14,417
Fiscal year ending June 30, 2028	420	10,270
Fiscal year ending June 30, 2029	347	—
Thereafter	603	—
Total lease payments	2,642	24,687
Less: Imputed interest	(505)	(2,126)
Present value of lease liabilities1	$2,137	$22,561

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