DENVER, Colorado --Tipperary Corporation (AMEX-TPY), an independent energy company, today announced it has acquired an additional interest in the Comet Ridge coalbed methane project in Australia, and in a separate transaction has agreed to assign part of its interest in the Hanna Draw coalbed methane project in Wyoming in exchange for drilling and completion cost payments in several proposed project test wells.

The Company recently issued 675,000 shares of its unregistered common stock to an undisclosed party in return for a 2.5% capital-bearing interest in the Comet Ridge project. This brings the Company's total capital-bearing interest to 64.75%. Tipperary and its co-venturers in the project are currently drilling the sixth well in a previously announced 20-well development program.

The current Comet Ridge drilling program was initiated to support a five-year gas supply contract the Company entered into in June 2000 with ENERGEX Retail Pty Ltd. ENERGEX, which had the right to nominate purchase volumes between 10 and 15 million cubic feet per day for the final three years of the contract, recently elected to take the maximum 15 million cubic feet per day. Tipperary and certain of its co-venturers participate in the contract, and Tipperary's share is 84%.

In other news, the Company reported it has entered into an agreement with Denver-based Barrett Resources to transfer a portion of Tipperary's interest in the Hanna Draw coalbed methane project in Wyoming to Barrett. The agreement states that Barrett will pay 100% of the costs to drill and complete five additional test wells on the project. Upon completion of these wells, Tipperary will assign Barrett a 29% interest and retain a 20% interest in the project. Existing test wells are currently de-watering with commercial production yet to be established.

"While we remain optimistic about the long-term possibilities of the Hanna Draw project, we have elected to take this opportunity to reduce our future capital investment in this project so we can increase our exposure in other areas," stated David Bradshaw, president and CEO.

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 64.75% interest in southeastern Queensland's Comet Ridge coalbed methane project, also owns various exploration permits in Queensland. Domestically, Tipperary holds the aforementioned interest in the 38,000-acre Hanna Draw coalbed methane exploration project in Wyoming and 50% of a 57,000-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.