DENVER, Colorado --Tipperary Corporation (AMEX-TPY), an independent energy company, today announced it has thus far received net proceeds of approximately $12 million from domestic asset sales. The Company previously announced it would sell its U.S.-based conventional oil and gas assets to focus on coalbed methane. Approximately $7.8 million of the sales proceeds were used to pay off the entire remaining balance of the Company's bank debt. The Company is in the process of completing additional property sales and intends to use proceeds to further reduce debt and fund coalbed methane activities.

In other news, the Company announced that it has entered into a credit facility with TCW Asset Management Company of Los Angeles, California. This facility is to be used to fund additional development of the Comet Ridge Coalbed Methane project in Queensland, Australia. Upon satisfying certain conditions, the Company will be able to begin borrowing under the $17 million facility. A portion of the funds will be used to repay an existing project loan of approximately $4.6 million due to Slough Estates USA Inc., the Companyıs 55% shareholder.

Through the Company's 90% owned subsidiary -Tipperary Oil & Gas (Australia) Pty Ltd-Tipperary owns exploration permits and a 61.25% interest in the Comet Ridge Coalbed Methane project in Queensland, Australia. Also, the Company's remaining producing oil and gas properties in the United States continue to be held for sale in connection with the shift in the Company's direction 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," "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.