DENVER, Colorado --Tipperary Corporation (AMEX-TPY), an independent oil and gas company, today announced that the Company has entered into an agreement with Delta Petroleum Corporation (NASDAQ-DPTR) to sell all of Tipperary's undivided interests in the West Buna field in Jasper and Hardin counties, Texas, and to simultaneously purchase all of Delta's undivided interests in certain Authorities to Prospect (ATPs) in Queensland, Australia. The transactions are expected to close on or before May 24, 2002.

Tipperary will receive $4.1 million in cash proceeds from the sale of the West Buna property. This east Texas property is the Company's only remaining domestic producing asset following a divestiture of most of the Company's U.S. oil and gas holdings during fiscal 2000. Tipperary reported total natural gas equivalent reserves of approximately 4.3 billion cubic feet and a present value, discounted at 10%, of approximately $5.8 million associated with this property as of December 31, 2001.

The assets being purchased in Queensland, Australia include Delta's 5% interest in the Comet Ridge project on ATP 526 and interests of 2.5% or less in each of six other ATPs that have no proved reserves. Tipperary will acquire all of these interests for a purchase price of $5.25 million, which will include $4.8 million in cash and 250,000 unregistered shares of the Company's common stock valued at $450,000. Tipperary also will assume up to $600,000 of obligations owed by Delta related to the Comet Ridge project. This acquisition will bring the Company's total capital-bearing interest in the Comet Ridge project up to 70%.

David Bradshaw, Tipperary CEO, said, "We are pleased to have the opportunity to increase our interest in the Comet Ridge project and gain exposure to other possible sources of coalbed methane gas in Queensland. After the sale of the West Buna property, our activity in the United States will involve further exploration and evaluation of our new projects in Colorado."

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 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" "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, including estimates of unproved oil and gas reserves and values, are forward-looking statements. Readers are encouraged to read the SEC reports of Tipperary, particularly its Annual Report on Form 10-KSB for the Year Ended December 31, 2001, for meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management.