v3.26.3
Leases
 12 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases
Note 6 – Leases
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 June 30, 2026, the end date of the drilling contract for the current rig is March 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 15.9% per annum, which was recognized in finance lease liabilities in the consolidated balance sheet.

The following table presents the classification and location of the Group’s leases on the consolidated balance sheets (in thousands):
June 30,
20262025
Right-of-use assets:
Operating lease right-of-use assets
$2,705 $1,549 
Finance lease right-of-use asset
14,345 16,544 
17,050 18,093 
Lease liabilities:
Current portion of operating lease obligations
1,897 391 
Non-current portion of operating lease obligations
1,018 1,175 
Current portion of finance lease obligation
14,410 15,307 
Non-current portion of finance lease obligation
8,354 9,523 
$25,679 $26,396 
The following table presents the components of the lease costs as of June 30, 2026 and 2025 (in thousands)::
For the years
ended June 30,
20262025
Operating leases:
Operating lease cost charged to profit and loss
$3,309 $522 
Finance lease:
Interest on lease liability3,198 3,020 
Depreciation on right-of-use asset8,755 9,613 
Total finance lease cost11,953 12,633 
Less: Lease cost capitalized to unproved properties(11,953)(12,633)
Finance lease cost charged to profit and loss$— $— 
The following table presents the cash flow information related to lease payments for the years ended June 30, 2026 and 2025 (in thousands):
For the years ended
June 30,
20262025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases
$5,024 $522 
Financing cash flows for finance leases
8,225 7,766 
$13,249 $8,288 
The following table presents supplemental information for the Group’s non-cancellable leases for the years ended June 30, 2026 and 2025:
For the years ended
June 30,
20262025
Operating leases:
Weighted-average remaining lease term 2.23.8
Weighted-average incremental borrowing rate12.41 %10.49 %
Finance lease:
Weighted-average remaining lease term1.81.8
Weighted-average incremental borrowing rate15.88 %12.76 %
As of June 30, 2026, the Group’s undiscounted minimum cash payment obligations for its lease liabilities are as follows (in thousands):
As of June 30, 2026Operating leasesFinance leases
Fiscal year ending June 30, 2026$— $981 
Fiscal year ending June 30, 20272,164 14,418 
Fiscal year ending June 30, 2028415 10,270 
Fiscal year ending June 30, 2029342 — 
Thereafter
595 — 
Total lease payments
3,516 25,669 
Less: Imputed interest
(601)(2,904)
Present value of lease liabilities1
$2,915 $22,765 
1 Includes both current and long-term portion of the lease liabilities.
Leases
Note 6 – Leases
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 June 30, 2026, the end date of the drilling contract for the current rig is March 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 15.9% per annum, which was recognized in finance lease liabilities in the consolidated balance sheet.

The following table presents the classification and location of the Group’s leases on the consolidated balance sheets (in thousands):
June 30,
20262025
Right-of-use assets:
Operating lease right-of-use assets
$2,705 $1,549 
Finance lease right-of-use asset
14,345 16,544 
17,050 18,093 
Lease liabilities:
Current portion of operating lease obligations
1,897 391 
Non-current portion of operating lease obligations
1,018 1,175 
Current portion of finance lease obligation
14,410 15,307 
Non-current portion of finance lease obligation
8,354 9,523 
$25,679 $26,396 
The following table presents the components of the lease costs as of June 30, 2026 and 2025 (in thousands)::
For the years
ended June 30,
20262025
Operating leases:
Operating lease cost charged to profit and loss
$3,309 $522 
Finance lease:
Interest on lease liability3,198 3,020 
Depreciation on right-of-use asset8,755 9,613 
Total finance lease cost11,953 12,633 
Less: Lease cost capitalized to unproved properties(11,953)(12,633)
Finance lease cost charged to profit and loss$— $— 
The following table presents the cash flow information related to lease payments for the years ended June 30, 2026 and 2025 (in thousands):
For the years ended
June 30,
20262025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases
$5,024 $522 
Financing cash flows for finance leases
8,225 7,766 
$13,249 $8,288 
The following table presents supplemental information for the Group’s non-cancellable leases for the years ended June 30, 2026 and 2025:
For the years ended
June 30,
20262025
Operating leases:
Weighted-average remaining lease term 2.23.8
Weighted-average incremental borrowing rate12.41 %10.49 %
Finance lease:
Weighted-average remaining lease term1.81.8
Weighted-average incremental borrowing rate15.88 %12.76 %
As of June 30, 2026, the Group’s undiscounted minimum cash payment obligations for its lease liabilities are as follows (in thousands):
As of June 30, 2026Operating leasesFinance leases
Fiscal year ending June 30, 2026$— $981 
Fiscal year ending June 30, 20272,164 14,418 
Fiscal year ending June 30, 2028415 10,270 
Fiscal year ending June 30, 2029342 — 
Thereafter
595 — 
Total lease payments
3,516 25,669 
Less: Imputed interest
(601)(2,904)
Present value of lease liabilities1
$2,915 $22,765 
1 Includes both current and long-term portion of the lease liabilities.
Leases
Note 6 – Leases
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 June 30, 2026, the end date of the drilling contract for the current rig is March 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 15.9% per annum, which was recognized in finance lease liabilities in the consolidated balance sheet.

The following table presents the classification and location of the Group’s leases on the consolidated balance sheets (in thousands):
June 30,
20262025
Right-of-use assets:
Operating lease right-of-use assets
$2,705 $1,549 
Finance lease right-of-use asset
14,345 16,544 
17,050 18,093 
Lease liabilities:
Current portion of operating lease obligations
1,897 391 
Non-current portion of operating lease obligations
1,018 1,175 
Current portion of finance lease obligation
14,410 15,307 
Non-current portion of finance lease obligation
8,354 9,523 
$25,679 $26,396 
The following table presents the components of the lease costs as of June 30, 2026 and 2025 (in thousands)::
For the years
ended June 30,
20262025
Operating leases:
Operating lease cost charged to profit and loss
$3,309 $522 
Finance lease:
Interest on lease liability3,198 3,020 
Depreciation on right-of-use asset8,755 9,613 
Total finance lease cost11,953 12,633 
Less: Lease cost capitalized to unproved properties(11,953)(12,633)
Finance lease cost charged to profit and loss$— $— 
The following table presents the cash flow information related to lease payments for the years ended June 30, 2026 and 2025 (in thousands):
For the years ended
June 30,
20262025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases
$5,024 $522 
Financing cash flows for finance leases
8,225 7,766 
$13,249 $8,288 
The following table presents supplemental information for the Group’s non-cancellable leases for the years ended June 30, 2026 and 2025:
For the years ended
June 30,
20262025
Operating leases:
Weighted-average remaining lease term 2.23.8
Weighted-average incremental borrowing rate12.41 %10.49 %
Finance lease:
Weighted-average remaining lease term1.81.8
Weighted-average incremental borrowing rate15.88 %12.76 %
As of June 30, 2026, the Group’s undiscounted minimum cash payment obligations for its lease liabilities are as follows (in thousands):
As of June 30, 2026Operating leasesFinance leases
Fiscal year ending June 30, 2026$— $981 
Fiscal year ending June 30, 20272,164 14,418 
Fiscal year ending June 30, 2028415 10,270 
Fiscal year ending June 30, 2029342 — 
Thereafter
595 — 
Total lease payments
3,516 25,669 
Less: Imputed interest
(601)(2,904)
Present value of lease liabilities1
$2,915 $22,765 
1 Includes both current and long-term portion of the lease liabilities.