DENVER, Colorado — Tipperary Corporation (AMEX-TPY), an independent energy company, today announced results for its first fiscal quarter ended December 31, 1999.

The Company reported a net loss for the quarter of $1,000, or less than one cent per share, on revenue of $2.9 million compared with a net loss of $7.3 million, or 55 cents per share, on revenue of $1.7 million a year ago. The increase in revenue was attributable to significantly higher oil and gas prices as compared with the prior year's first fiscal quarter and to an increase in sales from the Comet Ridge coalbed methane project in Australia. The loss for the first quarter of fiscal 1999 included a $5.7 million write-down of the Company's U.S. oil and gas properties, which was caused by a sharp decrease in oil and gas prices during that quarter.

First quarter oil volumes were 83,000 barrels versus 98,000 barrels in the same quarter last year. Domestic gas production during the quarter was 279,000 Mcf compared with 327,000 Mcf a year ago. U.S. production levels for both oil and gas were lower due to natural production declines.

Tipperary's total gas production volumes were higher in the first quarter than they were a year ago due to an increase of 135,000 Mcf in gas volumes sold in Australia. Sales from the Comet Ridge project were 316,000 Mcf in the first quarter of fiscal 2000 versus 181,000 Mcf in the same quarter last year.

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.

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 statements of historical facts that address activities that Tipperary Corporation expects or anticipates will or may occur in the future are forward-looking statements. Readers are encouraged to read the SEC reports of Tipperary Corporation, particularly its Annual Report on Form 10-K for the year ended September 30, 1999, for meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management.