DENVER, Colorado -- Tipperary Corporation (AMEX- TPY), an independent energy company, today announced it has acquired additional interests in the Comet Ridge coalbed methane project in Queensland, Australia for cash and common stock. The Company also announced a separate private placement of common stock to private accredited investors for a portion of the cash used in the acquisition.

The Company stated that the total interest acquired was 5.5% in capital bearing interest, 5.7% in leasehold ownership, and a 5.13% net revenue interest before project payout. After project payout, the acquired interest will be 6.15% in capital bearing and leasehold ownership interest and a 5.54% net revenue interest. The total acquisition price was $5.16 million. The consideration paid was $3.3 million in cash and 1,163,328 shares of restricted common stock valued at $1.60 per share.

Tipperary also issued 1,518,988 shares of restricted common stock to two private investors at $1.58 per share, receiving $2.4 million in cash proceeds. The two investors also received warrants to acquire a total of 288,000 shares of common stock at an exercise price of $2.00 per share. The remaining $900,000 used in the acquisition was funded from Tipperary's cash on hand.

David L. Bradshaw, Tipperary CEO, stated, "The acquisition of these additional interests will increase proved gas reserves by approximately 15 Bcf and the present value of future net revenues discounted at 10% by approximately $6.7 million. This acquisition again underscores our previously announced commitment to increasing Tipperary's coalbed methane reserves."

Tipperary is a Denver-based independent energy company. Its 90% owned subsidiary, Tipperary Oil & Gas (Australia) Pty Ltd, holds a 61.25% 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.