Leases |
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| 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):
For the three months and nine months ended March 31, 2026, and 2025, the components of the lease costs were as follows (in thousands):
The following table presents the cash flow information related to lease payments for the nine months ended March 31, 2026, and 2025 (in thousands):
The following table presents supplemental information for the Group’s non-cancellable leases for the nine months ended March 31, 2026, and 2025:
As of March 31, 2026, the Group’s undiscounted minimum cash payment obligations for its lease liabilities are as follows (in thousands):
1 Includes both current and long-term portion of the lease liabilities.
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| 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):
For the three months and nine months ended March 31, 2026, and 2025, the components of the lease costs were as follows (in thousands):
The following table presents the cash flow information related to lease payments for the nine months ended March 31, 2026, and 2025 (in thousands):
The following table presents supplemental information for the Group’s non-cancellable leases for the nine months ended March 31, 2026, and 2025:
As of March 31, 2026, the Group’s undiscounted minimum cash payment obligations for its lease liabilities are as follows (in thousands):
1 Includes both current and long-term portion of the lease liabilities.
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| 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):
For the three months and nine months ended March 31, 2026, and 2025, the components of the lease costs were as follows (in thousands):
The following table presents the cash flow information related to lease payments for the nine months ended March 31, 2026, and 2025 (in thousands):
The following table presents supplemental information for the Group’s non-cancellable leases for the nine months ended March 31, 2026, and 2025:
As of March 31, 2026, the Group’s undiscounted minimum cash payment obligations for its lease liabilities are as follows (in thousands):
1 Includes both current and long-term portion of the lease liabilities.
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