DENVER, Colorado --Tipperary Corporation (AMEX-TPY), an independent energy company, today announced it has recently completed the acquisition of approximately 68,000 net acres of undeveloped oil and gas leasehold in Moffat County, Colorado. Management said the leases were acquired over the past few months primarily for coalbed methane exploration. It is believed, however, that the acreage has the potential for conventional gas reserves as well. The Company's investment in the acreage to date is approximately $2.4 million.

David Bradshaw, the Company's president and CEO, stated, "We have now assembled a significant new position in an area where leasing has been very active. We believe this acreage gives us excellent exposure to coalbed methane and conventional gas prospects, and we are planning for initial exploration activities in the near term."

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.