Leases

3 Months Ended

Sep. 30, 2024

Note 4 – Leases

As a Lessee

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

cing 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.

Commencing 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 September 30, 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:


	September 30, 2024	June 30, 2024
Right-of-use assets:
Operating lease right-of-use assets	$1,019,104	$962,052
Finance lease right-of-use assets	18,164,738	20,697,452
	19,183,842	21,659,504

Lease liabilities:
Current portion of operating lease obligations	360,801	397,999
Non-current portion of operating lease obligations	725,571	587,250
Current portion of finance lease obligations	18,220,258	12,767,400
Non-current portion of finance lease obligations	9,556,380	14,141,713
	$28,863,010	$27,894,362

For the three months ended September 30, 2024, and 2023, the components of the lease costs were as follows:


	Three months ended September 30,
	2024	2023
Operating leases:
Operating lease cost charged to profit and loss	$157,146	$70,514

Finance leases:
Interest on lease liabilities	795,924	815,910
Depreciation on right-of-use assets	2,532,715	3,097,532
Total finance lease cost	3,328,639	3,913,442
Less: Lease cost capitalized to unproved properties	(3,328,639)	(3,913,442)
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, 2024, and 2023:


	Three months ended September 30,
	2024	2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$157,146	$70,514
Financing cash flows for finance leases	—	—
	$157,146	$70,514

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

ended September 30, 2024, and 2023:


	Three months ended September 30,
	2024	2023
Operating leases:
Weighted-average remaining lease term	3.57	1.42
Weighted-average incremental borrowing rate	13.50%	3.90%

Finance leases:
Weighted-average remaining lease term	1.83	2.83
Weighted-average incremental borrowing rate	13.45%	13.45%

As of September 30, 2024, the Group’s undiscounted minimum cash payment obligations for its lease liabilities are

as follows:


As at September 30, 2024	Operating leases	Finance leases
Fiscal year ending June 30, 2025 (excluding three months period from July 1, 2024 to September 30, 2024)	$392,879	$15,419,850
Fiscal year ending June 30, 2026	356,745	14,417,500
Fiscal year ending June 30, 2027	368,215	632,000
Thereafter	177,578	—
Total lease payments	1,295,417	30,469,350
Less: Imputed interest	(209,045)	(2,692,712)
Present value of lease liabilities	$1,086,372	$27,776,638

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 ended September 30, 2024, was $81,637 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.