DENVER, Colorado - Tipperary Corporation (AMEX-TPY), an independent energy company, today announced results for the interim fiscal quarter ended December 31, 2000. The quarter represents the transition period resulting from the Company's decision to change its fiscal year end from September 30 to December 31.

The Company reported a net loss for the quarter of $1,120,000 or five cents per share, on revenue of $864,000 compared with a net loss of $1,000, or less than one cent per share, on revenue of $2.9 million in the comparable period a year ago. Sales of a significant portion of the Company's domestic producing properties were primarily responsible for the decrease in revenue. However, the Company received significantly higher oil and gas prices as compared with the prior year's fiscal quarter and had an increase in sales from the Comet Ridge coalbed methane project in Australia.

Total gas sold during the 2000 quarter was 497,000 Mcf compared with 595,000 Mcf a year ago. Domestic production declines resulting from asset sales were partially offset by increased sales from the Comet Ridge coalbed methane project in Australia. In the 2000 transition quarter, gas production sold in Australia was 466,000 Mcf generating revenue of $525,000 compared with 316,000 Mcf and revenue of $422,000 in last year's quarter.

Oil production volumes in the quarter were 3,000 barrels versus 83,000 barrels in the same period last year. The volumes decreased as a result of the previously discussed sales of producing properties.

"Although we have seen decreased revenues related to the sales of our domestic properties, our progress in Australia has been promising," said David Bradshaw, Tipperary's president and CEO. "Our gas reserves in the Comet Ridge project have increased and we are optimistic about our potential both in Queensland and domestically, including our newest exploratory acreage in Colorado."

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 holds a 62.25% interest in southeastern Queensland's Comet Ridge coalbed methane project and other exploration permits in Queensland. Domestically, Tipperary holds a 49% interest in the Hanna Draw coalbed methane exploration project in Wyoming and approximately 68,000 net undeveloped acres in Moffat County, Colorado.

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, particularly its Form 10-KSB for the transition period ended December 31, 2000, for meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management.