v3.25.4
Leases
6 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases Note 4 – Leases
As a Lessee
The Group’s operating lease activities consist of leases for office premises and modular buildings at the camp pad
site.
Commencing on October 1, 2025 the Group entered into the use of additional bunkhouses and accommodation
verandahs pursuant to the lease arrangement entered into with Northern Transportables on August 14, 2025 (the “Stage 3
Hire of Goods”). The term of the lease arrangement is fifteen months, with an option to further renew the lease (as needed).
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 (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).
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 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 December 31, 2025, the end date of the drilling
contract for the current rig is early January 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 15.60% 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):
December 31,
2025
June 30,
2025
Right-of-use assets:
Operating lease right-of-use assets
$4,126
$1,549
Finance lease right-of-use assets
17,212
16,544
21,338
18,093
Lease liabilities:
Current portion of operating lease obligations
2,829
391
Non-current portion of operating lease obligations
1,277
1,175
Current portion of finance lease obligations
11,713
15,307
Non-current portion of finance lease obligations
11,711
9,523
$27,530
$26,396
For the three months and six months ended December 31, 2025, and 2024, the components of the lease costs were as
follows (in thousands):
Three months ended December 31,
Six months ended December 31,
2025
2024
2025
2024
Operating leases:
Operating lease cost charged to profit and loss
$1,300
$130
$1,439
$287
Finance leases:
Interest on lease liabilities
809
693
1,476
1,489
Depreciation on right-of-use assets
2,195
2,533
4,515
5,065
Total finance lease cost
3,003
3,225
5,992
6,554
Less: Lease cost capitalized to unproved properties
(3,003)
(3,225)
(5,992)
(6,554)
Finance lease cost charged to profit and loss
$
$
$
$
The following table presents the cash flow information related to lease payments for the six months ended
December 31, 2025, and 2024 (in thousands):
Six months ended December 31,
2025
2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases
$2,215
$287
Financing cash flows for finance leases
6,135
5,504
$8,350
$5,791
The following table presents supplemental information for the Group’s non-cancellable leases for the six months
ended December 31, 2025, and 2024:
Six months ended December 31,
2025
2024
Operating leases:
Weighted-average remaining lease term
1.88
2.91
Weighted-average incremental borrowing rate
13.67%
11.50%
Finance leases:
Weighted-average remaining lease term
2.08
1.58
Weighted-average incremental borrowing rate
15.60%
13.45%
As of December 31, 2025, the Group’s undiscounted minimum cash payment obligations for its lease liabilities are as
follows (in thousands):
As of December 31, 2025
Operating leases
Finance leases
Fiscal year ending June 30, 2026 (excluding six months period from July 1, 2025 to December
31, 2025)
$1,601
$5,392
Fiscal year ending June 30, 2027
2,202
14,418
Fiscal year ending June 30, 2028
344
7,545
Thereafter
482
Total lease payments
4,629
27,354
Less: Imputed interest
(524)
(3,929)
Present value of lease liabilities1
$4,105
$23,425
1 Includes both current and long-term portion of the lease liabilities.
Leases Note 4 – Leases
As a Lessee
The Group’s operating lease activities consist of leases for office premises and modular buildings at the camp pad
site.
Commencing on October 1, 2025 the Group entered into the use of additional bunkhouses and accommodation
verandahs pursuant to the lease arrangement entered into with Northern Transportables on August 14, 2025 (the “Stage 3
Hire of Goods”). The term of the lease arrangement is fifteen months, with an option to further renew the lease (as needed).
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 (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).
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 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 December 31, 2025, the end date of the drilling
contract for the current rig is early January 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 15.60% 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):
December 31,
2025
June 30,
2025
Right-of-use assets:
Operating lease right-of-use assets
$4,126
$1,549
Finance lease right-of-use assets
17,212
16,544
21,338
18,093
Lease liabilities:
Current portion of operating lease obligations
2,829
391
Non-current portion of operating lease obligations
1,277
1,175
Current portion of finance lease obligations
11,713
15,307
Non-current portion of finance lease obligations
11,711
9,523
$27,530
$26,396
For the three months and six months ended December 31, 2025, and 2024, the components of the lease costs were as
follows (in thousands):
Three months ended December 31,
Six months ended December 31,
2025
2024
2025
2024
Operating leases:
Operating lease cost charged to profit and loss
$1,300
$130
$1,439
$287
Finance leases:
Interest on lease liabilities
809
693
1,476
1,489
Depreciation on right-of-use assets
2,195
2,533
4,515
5,065
Total finance lease cost
3,003
3,225
5,992
6,554
Less: Lease cost capitalized to unproved properties
(3,003)
(3,225)
(5,992)
(6,554)
Finance lease cost charged to profit and loss
$
$
$
$
The following table presents the cash flow information related to lease payments for the six months ended
December 31, 2025, and 2024 (in thousands):
Six months ended December 31,
2025
2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases
$2,215
$287
Financing cash flows for finance leases
6,135
5,504
$8,350
$5,791
The following table presents supplemental information for the Group’s non-cancellable leases for the six months
ended December 31, 2025, and 2024:
Six months ended December 31,
2025
2024
Operating leases:
Weighted-average remaining lease term
1.88
2.91
Weighted-average incremental borrowing rate
13.67%
11.50%
Finance leases:
Weighted-average remaining lease term
2.08
1.58
Weighted-average incremental borrowing rate
15.60%
13.45%
As of December 31, 2025, the Group’s undiscounted minimum cash payment obligations for its lease liabilities are as
follows (in thousands):
As of December 31, 2025
Operating leases
Finance leases
Fiscal year ending June 30, 2026 (excluding six months period from July 1, 2025 to December
31, 2025)
$1,601
$5,392
Fiscal year ending June 30, 2027
2,202
14,418
Fiscal year ending June 30, 2028
344
7,545
Thereafter
482
Total lease payments
4,629
27,354
Less: Imputed interest
(524)
(3,929)
Present value of lease liabilities1
$4,105
$23,425
1 Includes both current and long-term portion of the lease liabilities.
Leases Note 4 – Leases
As a Lessee
The Group’s operating lease activities consist of leases for office premises and modular buildings at the camp pad
site.
Commencing on October 1, 2025 the Group entered into the use of additional bunkhouses and accommodation
verandahs pursuant to the lease arrangement entered into with Northern Transportables on August 14, 2025 (the “Stage 3
Hire of Goods”). The term of the lease arrangement is fifteen months, with an option to further renew the lease (as needed).
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 (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).
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 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 December 31, 2025, the end date of the drilling
contract for the current rig is early January 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 15.60% 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):
December 31,
2025
June 30,
2025
Right-of-use assets:
Operating lease right-of-use assets
$4,126
$1,549
Finance lease right-of-use assets
17,212
16,544
21,338
18,093
Lease liabilities:
Current portion of operating lease obligations
2,829
391
Non-current portion of operating lease obligations
1,277
1,175
Current portion of finance lease obligations
11,713
15,307
Non-current portion of finance lease obligations
11,711
9,523
$27,530
$26,396
For the three months and six months ended December 31, 2025, and 2024, the components of the lease costs were as
follows (in thousands):
Three months ended December 31,
Six months ended December 31,
2025
2024
2025
2024
Operating leases:
Operating lease cost charged to profit and loss
$1,300
$130
$1,439
$287
Finance leases:
Interest on lease liabilities
809
693
1,476
1,489
Depreciation on right-of-use assets
2,195
2,533
4,515
5,065
Total finance lease cost
3,003
3,225
5,992
6,554
Less: Lease cost capitalized to unproved properties
(3,003)
(3,225)
(5,992)
(6,554)
Finance lease cost charged to profit and loss
$
$
$
$
The following table presents the cash flow information related to lease payments for the six months ended
December 31, 2025, and 2024 (in thousands):
Six months ended December 31,
2025
2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases
$2,215
$287
Financing cash flows for finance leases
6,135
5,504
$8,350
$5,791
The following table presents supplemental information for the Group’s non-cancellable leases for the six months
ended December 31, 2025, and 2024:
Six months ended December 31,
2025
2024
Operating leases:
Weighted-average remaining lease term
1.88
2.91
Weighted-average incremental borrowing rate
13.67%
11.50%
Finance leases:
Weighted-average remaining lease term
2.08
1.58
Weighted-average incremental borrowing rate
15.60%
13.45%
As of December 31, 2025, the Group’s undiscounted minimum cash payment obligations for its lease liabilities are as
follows (in thousands):
As of December 31, 2025
Operating leases
Finance leases
Fiscal year ending June 30, 2026 (excluding six months period from July 1, 2025 to December
31, 2025)
$1,601
$5,392
Fiscal year ending June 30, 2027
2,202
14,418
Fiscal year ending June 30, 2028
344
7,545
Thereafter
482
Total lease payments
4,629
27,354
Less: Imputed interest
(524)
(3,929)
Present value of lease liabilities1
$4,105
$23,425
1 Includes both current and long-term portion of the lease liabilities.