DENVER, Colorado - Tipperary Corporation (AMEX-TPY), an independent oil and gas company, today announced results for the first quarter ended March 31, 2001.

First quarter revenue was $869,000 compared with $3.02 million in the same quarter a year ago. The Company reported a net loss of $1,195,000, or 5 cents per share, compared with net income of $140,000, or less than 1 cent per share, in the first quarter last year. Management attributed the decrease in revenue to the sale of a significant portion of the Company's domestic producing properties during fiscal 2000.

Total gas sold during the first quarter of 2001 was 513,000 Mcf compared with 650,000 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. Gas sales in Australia were 490,000 Mcf generating revenue of $548,000 compared with 391,000 Mcf and revenue of $515,000 in last year's first quarter.

Oil production volumes in the quarter were 4,800 barrels versus 72,000 barrels in the same period last year. The volumes decreased as a result of the previously discussed sales of producing properties.

"While our financial results clearly reflect the impact of last year's domestic property sales, our progress in the coalbed methane arena has been favorable and is advancing as planned," said David Bradshaw, president and CEO. "We are currently involved in a 20-well drilling program on our Comet Ridge Coalbed Methane Project in Queensland, Australia, and we also have recently announced our initiation of a Moffat County, Colorado project that will include drilling for both coalbed methane and conventional gas."

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, which holds a 62.25% interest in southeastern Queensland's Comet Ridge coalbed methane project, also owns various exploration permits in Queensland. Domestically, Tipperary holds a 49% interest in the 38,000-acre Hanna Draw coalbed methane exploration project in Wyoming and 50% of a 52,000-acre Colorado coalbed methane exploration project 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 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 Annual Report on 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.