Variable Interest Entities

3 Months Ended

Sep. 30, 2024

Note 2 – Variable Interest Entities

Tamboran (B1) Pty Ltd (“TB1”) is a 50/50 joint venture between the Company, through its wholly owned subsidiary

Tamboran (West) Pty Ltd (“TR West”), and Daly Waters Energy, LP ("DWE") governed by the amended and restated joint

venture and shareholders agreement dated June 3, 2024 (the “TB1 Joint Venture Agreement”). In assessing the primary

beneficiary of TB1, the Company determined the primary activities that most significantly impact the economic

performance of TB1 include serving as the manager, determining the strategy and direction of TB1, and the power to create

a budget.

The Company was appointed as the manager to manage and carry out day-to-day operations which supports the basis

of Tamboran as the primary beneficiary. The Company, as manager, also prepares the work plans and budget of TB1. As

such it was determined that the Company has the power to direct TB1’s activities that most significantly impact TB1’s

economic performance. As a result of the assessment performed, the results of TB1 have been included in the

accompanying condensed consolidated financial statements. TB1 has no assets that are collateral for or restricted solely to

settle its obligations. The creditors of TB1 do not have recourse to the Group’s general credit.

The Company also assessed which party to the TB1 Joint Venture Agreement has the obligation to absorb losses or

the right to receive the benefits of the VIE that could potentially be significant to the VIE. The future profits and losses of

TB1 are shared by the Company and DWE in proportion to their respective equity interest in TB1, however, to date the

Company has contributed a greater proportion of the capital and has no ability to recoup any of the excess funding the

Company has made to TB1 from DWE and therefore has a greater exposure to absorb losses.

A loan was provided to TR West from Tamboran Resources Pty Ltd (formerly known as Tamboran Resources

Limited) ("TR Ltd."), a wholly owned subsidiary of the Company. The loan was used by TR West to acquire its interest in

TB1. On November 9, 2022, TB1 completed the acquisition of a 77.5% share of Beetaloo Basin assets, EP 76, EP 98, and

EP 117. As a result of the TB1 Joint Venture Agreement, the Company and DWE each beneficially acquired a 38.75%

interest in the permits for the total undivided interest of 77.5%. Falcon Oil and Gas Australia limited ("Falcon") holds the

remaining undivided interest of 22.5% in the assets (collectively known as the "Beetaloo Joint Venture").

On March 4, 2024, Falcon, the owner of the remaining 22.5% interest in the Beetaloo Joint Venture assets, capped its

participation to 5% in the Beetaloo Joint Venture’s second Shenandoah South well pad (“SS2”). On March 21, 2024,

Tamboran B2 Pty Ltd ("TB1 Operator") (a wholly owned subsidiary of TB1 in which the Company has a 50% interest)

agreed to pick up Falcon’s interest, increasing TB1 Operator’s working interest to at least 95% in the wells drilled from the

SS2 well pad.

The following table summarizes the carrying amounts of TB1’s assets and liabilities included in the Group’s

condensed consolidated balance sheet as of September 30, 2024 and June 30, 2024:


	September 30, 2024	June 30, 2024
ASSETS
Current assets
Cash and cash equivalents	$8,454,574	$1,488,541
Trade and other receivables:
Joint interest billing	3,096,440	10,298,322
Intercompany receivable	5,526,088	7,415,684
ATO receivable	1,138,054	615,480
Prepaid expenses and other current assets	1,805,605	1,476,094
Total current assets	20,020,761	21,294,121
Natural gas properties, successful efforts method:
Unproved properties	194,418,892	167,998,061
Assets under construction- natural gas equipment	10,411,398	7,542,064
Finance lease right-of-use assets	19,096,969	20,697,452
Prepaid expenses and other non-current assets	402,565	385,215
Total non-current assets	224,329,824	196,622,792
TOTAL ASSETS	$244,350,585	$217,916,913

LIABILITIES
Current liabilities
Accounts payable and accrued expenses	$12,098,118	$10,569,865
Current portion of finance lease obligations	18,795,312	12,767,400
Total current liabilities	30,893,430	23,337,265
Finance lease obligations	10,193,335	14,141,713
Asset retirement obligations	4,821,472	4,174,178
Loan from Tamboran	128,124,936	113,096,572
Total non-current liabilities	143,139,743	131,412,463
TOTAL LIABILITIES	$174,033,173	$154,749,728