DENVER, Colorado -- Tipperary Corporation (AMEX-TPY), an independent energy company, today announced results for its fiscal year and fourth quarter ended December 31, 2001.

The Company reported a net loss for fiscal 2001 of $7,176,000, or 28 cents per share, on revenue of $3.6 million compared with net income of $43,000, or less than one cent per share, on revenue of $8.6 million for the fiscal year ended September 30, 2000. Tipperary announced last year that it was changing its fiscal year end from September 30 to December 31.

For the fourth fiscal quarter, Tipperary reported a loss of $2,594,000, or 9 cents per share, on revenue of $1,035,000 compared with a net loss of $1,120,000, or five cents per share, on revenue of $864,000 in the quarter ended December 31, 2000. Included in the results for fiscal 2001 and the fourth quarter of 2001 is a $900,000 non-cash impairment of prepaid drilling costs. Fiscal 2000 benefited from a $4.8 million gain recorded as a result of the sale of a significant portion of the Company's domestic producing properties. Fiscal 2000 results also included a $557,000 non-cash impairment of prepaid drilling costs.

Total gas production during fiscal 2001 was 2,440,000 Mcf compared with 2,317,000 Mcf in fiscal 2000. For the quarter, gas production was 660,000 Mcf compared with 497,000 Mcf in the same quarter last year. Increased sales in Australia have now replaced gas sales volumes lost due to the fiscal 2000 domestic property sales.

For fiscal 2001, oil production volumes were 17,000 barrels compared with 192,000 barrels in the prior year. Oil production volumes in the fourth quarter were 7,600 barrels versus 3,000 barrels in the same period last year. The volumes in fiscal 2001 decreased as a result of the previously discussed sales of domestic producing properties. The increase during the quarter was attributable to production from new wells.

"While the Company's 2001 results were impacted by the domestic property sales, it is encouraging to note that worldwide revenues for the fourth quarter of 2001 exceeded revenues for the same quarter a year ago by 20% due to the increasing sales volumes in Australia," said David Bradshaw, Tipperary's president and CEO. "We project gas sales to continue increasing during 2002 with ongoing development drilling and increasing volumes to be delivered under our existing contracts."

Tipperary Corporation is an independent energy company focused primarily on exploration for, and production of, coalbed methane and conventional natural gas. Headquartered in Denver, Colorado, Tipperary owns 90% of Queensland, Australia-based Tipperary Oil & Gas (Australia) Pty Ltd. This subsidiary, which holds a 65% interest in southeastern Queensland's Comet Ridge coalbed methane project, also holds other exploration permits in Queensland totaling approximately 1.5 million acres. Domestically, Tipperary holds interests in several exploration projects in Colorado and Wyoming covering approximately 385,000 acres.

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 December 31, 2001, for meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management.