DENVER, Colorado -- Tipperary Corporation (AMEX-TPY), an independent energy company, today announced that Slough Estates USA ("Slough") has converted its remaining shares of Tipperary preferred stock into the Company's common stock. In the conversion, Tipperary issued Slough 3,429,114 shares, bringing the Company's total common stock outstanding to 24,163,587 shares. The effective conversion date was February 29, 2000.

In December 1999, Slough purchased 6,329,114 shares of preferred stock for $1.58 per share which was convertible to common stock on a one-for-one basis. At closing, Slough converted 2,900,000 million shares into common stock. With this second and final conversion, Slough now owns approximately 55% of Tipperaryıs outstanding common shares. Tipperary will pay Slough a cash dividend of approximately $80,000 for the period the preferred shares were outstanding.

In other news, the Company announced that its 90%-owned subsidiary, Tipperary Oil & Gas (Australia) Pty Ltd, has been granted a new Authority to Prospect (ATP 675) covering approximately 850,000 acres in Queensland, Australia. Tipperary also holds ATP 655, which covers approximately 370,000 acres. Both ATP 675 and ATP 655 are in the vicinity of the 1,088,000-acre Comet Ridge Coalbed Methane project, located on ATP 526.

The Company also reported that two additional petroleum leases were granted on the Comet Ridge Project. The five leases that have now been granted on the Comet Ridge project cover approximately 285,000 acres in the southern portion of ATP 526. ATPs and leases are granted by the Queensland government and carry certain minimum expenditure requirements.

David L. Bradshaw, Tipperary's CEO, stated, "The conversion of the preferred stock allows the Company to cease paying dividends on the preferred stock. Also, the recent granting of the Petroleum Leases 99 and 100 represent further evidence of the Queensland government's support of the development of gas reserves in the southern portion of ATP 526. The government's issuance of ATP 675 affords us a sizable new area in which to explore for additional coalbed methane reserves. We view these developments as important to our previously announced focus on coalbed methane."

Tipperary is a Denver-based independent energy company. In addition to ATPs 655 and 675, Tipperary's 90% owned subsidiary, Tipperary Oil & Gas (Australia) Pty Ltd owns a 61.25% interest in the Comet Ridge Coalbed Methane project in Queensland, Australia. Tipperary also has producing oil and gas properties in the United States which are being held for sale in connection with a refocus toward increasing reserves and production from coalbed methane properties in the United States, Australia and possibly other countries.

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-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.