DENVER, Colorado --Tipperary Corporation (AMEX-TPY), an independent energy company, today announced it has received $7.5 million in initial funding under a previously announced credit facility with Los Angeles-based TCW Asset Management Company.

The credit agreement provides for a total commitment of $17 million to fund additional development of the Comet Ridge coalbed methane project in Queensland, Australia. Tipperary owns 62.25% of the project, which is located on Authority to Prospect (ATP) 526.

Approximately $4.5 million of the initial $7.5 million in proceeds were used to repay a previous project loan due to Slough Estates USA Inc., the Company's 54% shareholder. Of the remaining proceeds received to date, $1.5 million was advanced to cover capital expenditures related to an approved developmental drilling program, $243,000 was used to pay taxes and fees related to the financing and slightly less than $1.3 million is available as working capital for TCW-approved purposes.

As previously announced, Tipperary proposed a 20-well development-drilling program and drilling operations have now commenced on the first well. David Bradshaw, Tipperary's president and CEO, stated, "The TCW financing and commencement of the 20-well program represent an important step in the Comet Ridge project's development. It will allow us to increase gas production to fulfill sales requirements under our new gas contract with ENERGEX Retail Pty Ltd, and to demonstrate deliverability for other emerging markets."

Tipperary Corporation is an independent energy company focused primarily on exploration for and production of coalbed methane. Headquartered in Denver, Colorado, Tipperary owns 90% of Queensland, Australia-based Tipperary Oil & Gas (Australia) Pty Ltd. This subsidiary, which holds a 62.25% interest in southeastern Queensland's Comet Ridge coalbed methane project, also owns various exploration permits in Queensland. Domestically, Tipperary holds a 49% interest in the 38,000-acre Hanna Draw coalbed methane exploration project in Wyoming, and other acreage acquired for coalbed methane exploration.

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 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-KSB for the Fiscal Year Ended September 30, 2000, for meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management.