Business and Basis of Preparation

3 Months Ended

Sep. 30, 2026

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business and Basis of Preparation

Note 1 – Business and Basis of Preparation

General

Tamboran is an early-stage growth-oriented natural gas company with a vision of supporting the net zero CO2 energy

transition in Australia and Asia-Pacific through developing low CO2 unconventional gas resources in the Northern

Territory (“NT”) of Australia. The Group is in the exploration and appraisal stage with a current focus on exploiting its

primary assets, which are rights to working interests (“Tenements”) in exploration acreage in the Beetaloo sub-basin

(“Beetaloo” or “Beetaloo Basin”), NT Australia. To date, the Group has not determined whether the Tenements contain any

natural gas reserves that are economically recoverable.

On September 5, 2026, the Group achieved a significant milestone with the first gas production from its working

interests in the Beetaloo Basin. The Group is expected to achieve Practical Completion of the Sturt Plateau Compression

Facility (“SPCF”) and reach sustained production at normal capacity during the second quarter of the current financial year.

Post Practical Completion, the Group will begin recognizing revenue and related expenses, including depreciation and

depletion, in the income statement. Refer to Note 3 for additional discussion.

Tamboran operates in one reportable segment as a single business unit. Refer to Note 12 for additional discussion.

Going Concern and Management’s Liquidity Plans

The accompanying condensed consolidated financial statements have been prepared on the basis that the Group will

continue as a going concern which contemplates the realization of assets and the satisfaction of liabilities in the ordinary

and usual course of business.

As of September 30, 2026, the Group had:

•not generated material revenues since inception (commissioning gas sales commenced in September 2026),

and will not generate earnings in the next 12 months sufficient to satisfy all liabilities in the ordinary and

usual course of business;

•a working capital surplus of $87.5 million primarily arising from remaining cash and cash equivalents

resulting from previous years' capital raise activities;

•net debt drawn down of $72.5 million related to the construction of the SPCF plus associated financing costs;

•an accumulated deficit of $205.5 million since inception; and

•significant expenditures planned for the natural gas properties in the next 12 months.

While several of these conditions raise substantial doubt regarding the Group’s ability to continue as a going concern

for the twelve months following the date these consolidated financial statements were available for issuance, the Group has

achieved several milestones in recent periods, which indicate positive progress toward addressing this substantial doubt in

future periods. These milestones include the completion in April and May 2026 of an equity raise, which has significantly

strengthened the Group’s liquidity position. Construction of the SPCF was substantially complete as of September 30, 2026

with commissioning gas sales commencing in September 2026.

The Group’s ability to continue as a going concern remains dependent on the successful execution of its operational

plans, including completion of drilling and stimulation of the three wells on the Shenandoah South 1 (“SS1”) pad, tie‑in of

those wells to the SPCF, and completion of commissioning of the SPCF. Based on progress achieved to date and the

Group’s current execution plan, management expects to be better positioned to evaluate the alleviation of substantial doubt

in connection with future reporting periods, subject to continued successful execution of these operational plans and

funding of future commitments.

Although the Group’s cash flow forecast indicates that it will maintain a positive cash position throughout the twelve

months following the date these condensed consolidated financial statements were available for issuance, additional capital

will need to be raised to continue to fund the Group’s expected programs. In particular, the Group has minimum work

commitments under its exploration permits, including commitment wells required to be drilled and stimulated within

specified permit years. Funding for those commitments is expected to require additional equity or debt funding, farm-down

or asset sale proceeds, or a variation or extension of the relevant permit work programs. If the Group is unable to secure

such funding or obtain a variation, it may be unable to satisfy those commitments and could lose its rights in the affected

permits.

As of the date of this report, there can be no assurance that the Group will be successful in executing these plans;

however, management is actively progressing these programs in accordance with its development strategy.

Accordingly, these condensed consolidated financial statements do not include any adjustments related to the

recoverability and classification of recorded assets and liabilities that might be necessary should the Group be unable to

continue as a going concern.

Basis of Presentation of Condensed Consolidated Financial Statements

The accompanying condensed consolidated financial statements have been prepared in conformity with the

accounting principles generally accepted in the United States of America (“U.S. GAAP”) and rules and regulations of the

Securities and Exchange Commission (“SEC”) applicable to interim financial statements. Pursuant to such rules and

regulations, certain disclosures and information required by U.S. GAAP for complete consolidated financial statements

have been condensed or omitted. The accompanying condensed consolidated financial statements and notes therein should

be read in conjunction with the financial statements and notes included in our consolidated financial statements for the year

ended June 30, 2026 (“Group’s Annual Financial Statements”).

These condensed consolidated financial statements reflect all adjustments, in the opinion of management, which

include normal and recurring adjustments necessary to fairly state the Group’s consolidated financial position, results of

operations, and cash flows for the periods presented herein. The interim results are not necessarily indicative of results for

any other future annual or interim period. The June 30, 2026 condensed consolidated balance sheet was derived from the

audited Group’s Annual Financial Statements but does not include all disclosures required by U.S. GAAP for annual

financial statements.

Certain amounts in the Group's unaudited condensed consolidated financial statements may not add up or recalculate

due to rounding.

Significant Judgments and Accounting Estimates

The preparation of these condensed consolidated financial statements in conformity with U.S. GAAP requires

management to make certain estimates and assumptions that affect the amounts of assets and liabilities, revenue and

expenses and related disclosures of contingent assets and liabilities reported in the condensed consolidated financial

statements and the accompanying notes. There have been no significant changes to the Group’s accounting estimates from

those disclosed in the Group’s Annual Financial Statements.

Significant Accounting Policies

The Group’s significant accounting policies are described in the notes included in the Group’s Annual Financial

Statements. There have been no significant changes in accounting policies during the three months ended September 30,

2026.

Cash and Cash Equivalents and Restricted Cash

Cash represents cash deposits held at financial institutions. Cash equivalents include short-term highly liquid

investments of sufficient credit quality that are readily convertible to known amounts of cash and have original maturities

of three months or less.

Restricted cash as of September 30, 2026 and June 30, 2026 represents amounts held in a payment reserve account

that serves as a security for servicing of expected future commitment fee, interest payments and debt repayments over the

term of the long-term debt.

The following table is a reconciliation of the total cash and cash equivalents and restricted cash in the accompanying

condensed consolidated statements of cash flows and their corresponding balance sheet presentation:

	September 30, 2026	June 30, 2026
Cash and cash equivalents	$160,092	$219,135
Restricted cash	9,614	11,960
Total cash, cash equivalents and restricted cash	$169,706	$231,095

Foreign Currency Translation

These condensed consolidated financial statements are presented in US dollars (“$” or “dollars”) and the functional

currency of the Group is the Australian Dollar (“A$”). Adjustments resulting from the translation of functional currency

financial statements to reporting currency are accumulated and reported as a part of “Accumulated Other Comprehensive

Income (Loss)”, a separate component of stockholders’ equity.

Foreign Currency Transactions

Foreign currency transactions are translated into the Company’s functional currency using the exchange rates

prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such

transactions and from the translation at fiscal year-end exchange rates of monetary assets and liabilities denominated in

foreign currencies are recognized in the condensed consolidated statements of operations and comprehensive loss.

Leases

As a Lessee

The Group accounts for leases under ASC 842, Leases (“ASC 842”). The Group determines if an arrangement is a

lease at inception of the arrangement and if such lease will be classified as an operating lease or a finance lease. The

Group’s leases represent its right to use an underlying asset for the lease term. Right-of-use (“ROU”) assets and liabilities

are recognized at the lease commencement date based on the present value of lease payments over the lease term. As the

Group’s leases do not provide an implicit rate, the Group used a proxy for its incremental borrowing rate, which is the rate

incurred to borrow on a collateralized basis over a similar term, an amount equal to the lease payments in a similar

economic environment.

The Group has elected to account for lease and non-lease components in its contracts as a single lease component for

all asset classes except for office premises.

Operating leases are included in “Operating lease right-of-use assets” within the Group’s condensed consolidated

balance sheet. The Group’s related obligation to make lease payments is included in “Current portion of operating lease

obligations” and “Operating lease obligations” within the Group’s condensed consolidated balance sheet. Operating lease

expense for lease payments is recognized on a straight-line basis over the lease term.

Finance leases are included in “Finance lease right-of-use assets” within the Group’s condensed consolidated balance

sheet. The Group’s related obligation to make lease payments is included in “Current portion of finance lease obligations”

and “Finance lease obligations” within the Group’s condensed consolidated balance sheet. Finance lease expense includes

amortization of the ROU assets and interest on lease liabilities. The Group capitalizes the finance lease expense as a part of

unproved properties when the leased asset is directly involved in the drilling of wells (i.e. the finance lease expense is a

direct cost of drilling wells).

Leases with a lease term of 12 months or less are not recorded on the condensed consolidated balance sheet and are

recognized as lease expense on a straight-line basis over the lease term. When it is reasonably certain the Group will

exercise an option to extend the short-term lease beyond 12 months, the cost will be capitalized.

Natural Gas Properties

The Group’s operations are in the exploration and appraisal stage and have not yet realized any revenues from

operations. The Group holds a number of exploration permits that are grouped into areas of interest according to

geographical and geological attributes. Expenditure incurred in each area of interest is accounted for using the successful

efforts method, as defined within ASC 932, Extractive Activities – Oil and Gas.

Under this method, all general exploration and evaluation costs such as geological and geophysical costs are

expensed as incurred. The direct costs of acquiring the rights to explore, drilling exploratory wells, and evaluating the

results of drilling are capitalized as exploration and evaluation assets (as a part of unproved properties) pending the

determination of the results of the well. If a well does not result in hydrocarbons being present, the previously capitalized

costs are immediately expensed.

The Group capitalizes borrowing costs for assets under construction. Upon the asset becoming available for use,

capitalized borrowing costs, as a portion of the total cost of the asset, are depreciated over the estimated useful life of the

related asset.

Deferred Debt Issuance Costs

The Group presents unamortized deferred debt issuance costs related to the establishment of a Performance Bond

Facility Agreement (the “Facility Agreement”) as a component of “Prepaid expenses and other non-current assets” on its

consolidated balance sheet because the outstanding balance under this Facility Agreement may fluctuate as the Group

borrows and repays the relevant amounts. The Group amortizes the deferred debt issuance costs over the remaining term of

the Facility Agreement on a straight-line basis which is reported within “interest income (expense), net” in the condensed

consolidated statements of operations and comprehensive loss.

The Group initially recognizes the establishment of other third-party fees related to the long-term debt as a

component of “Prepaid expenses and other non-current assets” on its consolidated balance sheet. As and when the Group

draws down funds from the long-term debt facility, these costs are reclassified (on a proportionate basis) and presented as a

direct deduction from the carrying amount of the debt liability. These costs are amortized to the asset under construction

over the contractual term of the debt using the effective interest rate method.

Recently Issued Accounting Standards

The Group considers the applicability and impact of all Accounting Standards Updates (“ASUs”) issued by Financial

Accounting Standards Board (“FASB”). ASUs not discussed herein were assessed and determined to be either not

applicable, previously disclosed, or not material upon adoption.