DENVER, Colorado -- Tipperary Corporation (AMEX-TPY), an independent energy company, today announced results for its third fiscal quarter and nine-month period ended June 30, 2000.

Third quarter net income was $1,399,000, or 6 cents per share, on revenue of $1,811,000 compared with a net loss of $578,000, or 4 cents per share, on revenue of $2,063,000 in the third quarter a year ago.

Through nine months, net income was $1,538,000, or 7 cents per share, on revenue of $7,746,000 versus a net loss of $9,022,000, or 62 cents per share, on revenue of $5,420,000 in the same period last year.

Gains of approximately $4 million from sales of a significant portion of the Company's domestic producing properties were included in net income for the quarter and nine-month period. The third quarter sales of these assets were primarily responsible for the decrease in revenue during the quarter.

As previously announced, Tipperary has redirected its focus toward coalbed methane gas exploration, development and production. Consequently, the Company has held for sale its U.S. conventional oil and gas assets.

Increased revenue for the nine-month period was attributable to higher oil and gas prices. The improvement in the Company's bottom-line results was attributable to the gain on property sales, as well as to higher oil and gas prices and a decrease in depreciation, depletion and amortization (DD&A). No DD&A was recorded for most of the nine-month period for the Company's domestic oil and gas properties held for sale. The net loss for the nine-month period last year included a first-quarter, $5.7 million write-down of the Company's domestic properties, which resulted from a significant decline in oil and gas prices in that period.

Total gas production during the quarter was 593,000 Mcf compared with 511,000 Mcf a year ago. For the nine-month period, gas production was 1,839,000 Mcf compared with 1,539,000 in the prior-year period. Increased gas production volumes were due to increased sales from the Comet Ridge coalbed methane project in Australia. The Companyıs revenue from the Comet Ridge project was $561,000 on sales of 455,000 Mcf in the third quarter and $1,498,000 on sales of 1,162,000 Mcf in the nine-month period.

Oil production volumes in the third quarter were 29,000 barrels versus 87,000 barrels in the same quarter last year. Through nine months, oil production volumes were 184,000 barrels versus 269,000 barrels in the prior-year period. The volumes decreased as a result of the sales of producing properties and naturally declining production rates.

David Bradshaw, Tipperary's president and CEO, said, "The significant fluctuations in our bottom-line performance have been directly related to the ongoing sales of our domestic producing properties. As we have been reporting, we have transitioned our focus to opportunities in the coalbed methane sector and we continue to be encouraged by the long-term prospects they represent to the Company."

Through the Company's 90% owned subsidiary - Tipperary Oil & Gas (Australia) Pty Ltd - Tipperary holds a 62.25% interest in the currently producing Comet Ridge Coalbed Methane project and 100% of two other exploration permits in Queensland, Australia.

Information in this release 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.