v3.26.1
Leases
9 Months Ended
Mar. 31, 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-cancelable
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 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 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.
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 March 31, 2026, 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):
March 31,
2026
June 30,
2025
Right-of-use assets:
Operating lease right-of-use assets
$3,275
$1,549
Finance lease right-of-use assets
15,081
16,544
18,356
18,093
Lease liabilities:
Current portion of operating lease obligations
2,491
391
Non-current portion of operating lease obligations
874
1,175
Current portion of finance lease obligations
13,776
15,307
Non-current portion of finance lease obligations
9,049
9,523
$26,190
$26,396
For the three months and nine months ended March 31, 2026, and 2025, the components of the lease costs were as
follows (in thousands):
Three months ended March 31,
Nine months ended March 31,
2026
2025
2026
2025
Operating leases:
Operating lease cost charged to profit and loss
$916
$127
$2,355
$414
Finance leases:
Interest on lease liabilities
867
785
2,343
2,273
Depreciation on right-of-use assets
2,131
2,227
6,647
7,293
Total finance lease cost
2,998
3,012
8,990
9,566
Less: Lease cost capitalized to unproved properties
(2,998)
(3,012)
(8,990)
(9,566)
Finance lease cost charged to profit and loss
$
$
$
$
The following table presents the cash flow information related to lease payments for the nine months ended
March 31, 2026, and 2025 (in thousands):
Nine months ended March 31,
2026
2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases
$3,634
$414
Financing cash flows for finance leases
6,906
6,508
$10,540
$6,922
The following table presents supplemental information for the Group’s non-cancellable leases for the nine months
ended March 31, 2026, and 2025:
Nine months ended March 31,
2026
2025
Operating leases:
Weighted-average remaining lease term
1.74
2.83
Weighted-average incremental borrowing rate
13.35%
11.84%
Finance leases:
Weighted-average remaining lease term
1.83
2.08
Weighted-average incremental borrowing rate
15.60%
12.76%
As of March 31, 2026, the Group’s undiscounted minimum cash payment obligations for its lease liabilities are as
follows (in thousands):
As of March 31, 2026
Operating leases
Finance leases
Fiscal year ending June 30, 2026 (excluding nine months period from July 1, 2025 to March 31,
2026)
$800
$3,925
Fiscal year ending June 30, 2027
2,097
14,418
Fiscal year ending June 30, 2028
353
7,545
Thereafter
495
Total lease payments
3,745
25,888
Less: Imputed interest
(380)
(3,062)
Present value of lease liabilities1
$3,365
$22,826
1 Includes both current and long-term portion of the lease liabilities.
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-cancelable
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 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 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.
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 March 31, 2026, 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):
March 31,
2026
June 30,
2025
Right-of-use assets:
Operating lease right-of-use assets
$3,275
$1,549
Finance lease right-of-use assets
15,081
16,544
18,356
18,093
Lease liabilities:
Current portion of operating lease obligations
2,491
391
Non-current portion of operating lease obligations
874
1,175
Current portion of finance lease obligations
13,776
15,307
Non-current portion of finance lease obligations
9,049
9,523
$26,190
$26,396
For the three months and nine months ended March 31, 2026, and 2025, the components of the lease costs were as
follows (in thousands):
Three months ended March 31,
Nine months ended March 31,
2026
2025
2026
2025
Operating leases:
Operating lease cost charged to profit and loss
$916
$127
$2,355
$414
Finance leases:
Interest on lease liabilities
867
785
2,343
2,273
Depreciation on right-of-use assets
2,131
2,227
6,647
7,293
Total finance lease cost
2,998
3,012
8,990
9,566
Less: Lease cost capitalized to unproved properties
(2,998)
(3,012)
(8,990)
(9,566)
Finance lease cost charged to profit and loss
$
$
$
$
The following table presents the cash flow information related to lease payments for the nine months ended
March 31, 2026, and 2025 (in thousands):
Nine months ended March 31,
2026
2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases
$3,634
$414
Financing cash flows for finance leases
6,906
6,508
$10,540
$6,922
The following table presents supplemental information for the Group’s non-cancellable leases for the nine months
ended March 31, 2026, and 2025:
Nine months ended March 31,
2026
2025
Operating leases:
Weighted-average remaining lease term
1.74
2.83
Weighted-average incremental borrowing rate
13.35%
11.84%
Finance leases:
Weighted-average remaining lease term
1.83
2.08
Weighted-average incremental borrowing rate
15.60%
12.76%
As of March 31, 2026, the Group’s undiscounted minimum cash payment obligations for its lease liabilities are as
follows (in thousands):
As of March 31, 2026
Operating leases
Finance leases
Fiscal year ending June 30, 2026 (excluding nine months period from July 1, 2025 to March 31,
2026)
$800
$3,925
Fiscal year ending June 30, 2027
2,097
14,418
Fiscal year ending June 30, 2028
353
7,545
Thereafter
495
Total lease payments
3,745
25,888
Less: Imputed interest
(380)
(3,062)
Present value of lease liabilities1
$3,365
$22,826
1 Includes both current and long-term portion of the lease liabilities.
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-cancelable
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 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 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.
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 March 31, 2026, 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):
March 31,
2026
June 30,
2025
Right-of-use assets:
Operating lease right-of-use assets
$3,275
$1,549
Finance lease right-of-use assets
15,081
16,544
18,356
18,093
Lease liabilities:
Current portion of operating lease obligations
2,491
391
Non-current portion of operating lease obligations
874
1,175
Current portion of finance lease obligations
13,776
15,307
Non-current portion of finance lease obligations
9,049
9,523
$26,190
$26,396
For the three months and nine months ended March 31, 2026, and 2025, the components of the lease costs were as
follows (in thousands):
Three months ended March 31,
Nine months ended March 31,
2026
2025
2026
2025
Operating leases:
Operating lease cost charged to profit and loss
$916
$127
$2,355
$414
Finance leases:
Interest on lease liabilities
867
785
2,343
2,273
Depreciation on right-of-use assets
2,131
2,227
6,647
7,293
Total finance lease cost
2,998
3,012
8,990
9,566
Less: Lease cost capitalized to unproved properties
(2,998)
(3,012)
(8,990)
(9,566)
Finance lease cost charged to profit and loss
$
$
$
$
The following table presents the cash flow information related to lease payments for the nine months ended
March 31, 2026, and 2025 (in thousands):
Nine months ended March 31,
2026
2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases
$3,634
$414
Financing cash flows for finance leases
6,906
6,508
$10,540
$6,922
The following table presents supplemental information for the Group’s non-cancellable leases for the nine months
ended March 31, 2026, and 2025:
Nine months ended March 31,
2026
2025
Operating leases:
Weighted-average remaining lease term
1.74
2.83
Weighted-average incremental borrowing rate
13.35%
11.84%
Finance leases:
Weighted-average remaining lease term
1.83
2.08
Weighted-average incremental borrowing rate
15.60%
12.76%
As of March 31, 2026, the Group’s undiscounted minimum cash payment obligations for its lease liabilities are as
follows (in thousands):
As of March 31, 2026
Operating leases
Finance leases
Fiscal year ending June 30, 2026 (excluding nine months period from July 1, 2025 to March 31,
2026)
$800
$3,925
Fiscal year ending June 30, 2027
2,097
14,418
Fiscal year ending June 30, 2028
353
7,545
Thereafter
495
Total lease payments
3,745
25,888
Less: Imputed interest
(380)
(3,062)
Present value of lease liabilities1
$3,365
$22,826
1 Includes both current and long-term portion of the lease liabilities.