DENVER, Colorado -- Tipperary Corporation (AMEX- TPY), a Denver-based independent energy company, today announced it has entered into a coalbed methane exploration project in the Hanna Basin of Wyoming. Tipperary acquired a 49% working interest in the project from the operator, Barrett Resources Corporation of Denver.

The Company reported it has expended approximately $850,000 in acquisition costs and expects to invest another $1,000,000 during the next year for drilling and evaluating several wells in a pilot program. The project area comprises approximately 38,000 acres and is believed to potentially contain significant coalbed methane reserves.

In other news, Tipperary announced it has closed its previously announced financial restructuring with its major shareholder, Slough Estates USA. The Company issued Slough $10 million of convertible preferred stock, of which $4.6 million was converted into common stock in December 1999. The Company utilized $4 million of the proceeds from the stock sale and $700,000 from property-sale proceeds to reduce its bank debt from $11.8 million to $7.1 million.

David L. Bradshaw, Tipperary CEO, said, "The foregoing transactions and the progress in divesting our predominately crude oil properties in the United States have put us well on our way toward refocusing the Company on coalbed methane. We are particularly pleased to be involved with Barrett as they are already active in a large coalbed methane play in Wyoming. Tipperary is a participant in a major coalbed methane project in Australia, and we believe the companies' combined technical expertise will be of great benefit to the Hanna Basin project."

Tipperary is a Denver-based independent energy company. Its 90% owned subsidiary, Tipperary Oil & Gas (Australia) Pty Ltd, holds a 55.75% interest in the Comet Ridge Coalbed Methane project and a 370,000-acre Authority to Prospect in Queensland, Australia. In addition to its Australia interests, Tipperary has producing properties in the United States.

Information herein contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by words such as "may," "will," "expect," "anticipate," "estimate," or "continue," or comparable words. In addition, all statements other than the statements of historical facts that address activities that Tipperary expects or anticipates will or may occur in the future are forward-looking statements. Readers are encouraged to read the SEC reports of Tipperary, particularly its Form 10-K for the Fiscal Year Ended September 30, 1999 for meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management.