DENVER, Colorado -- Tipperary Corporation (AMEX-TPY), an independent oil and gas company, today announced results for the second quarter and six-month period ended June 30, 2001.

Second quarter revenue was $772,000 compared with $1.81 million in the same quarter a year ago. The Company reported a net loss of $1.80 million, or 7 cents per basic and diluted share, compared with net income of $2.11 million, or 8 cents per diluted share, in the second quarter last year. Through six months, revenue decreased to $1.64 million versus $4.83 million in the same period last year. During the six-month period, Tipperary reported a net loss of $2.99 million, or 12 cents per basic and diluted share, compared with net income of $1.80 million, or 8 cents per diluted share, last year.

Total gas sold during the second quarter of 2001 was 578,000 Mcf compared with 594,000 Mcf a year ago. Domestic production declines resulting from asset sales were mostly offset by increased sales from the Comet Ridge coalbed methane project in Australia. Gas sales in Australia were 556,000 Mcf generating revenue of $610,000 compared with 456,000 Mcf and revenue of $561,000 in last year's second quarter.

Oil sales volumes in the quarter were 2,300 barrels versus 29,000 barrels in the same period last year.

Through six months, gas sales volumes were 1,091,000 Mcf compared with 1,244,000 in the prior year. Oil sales volumes were 7,100 barrels compared to 101,000 barrels in the same period last year.

Management attributed the decrease in oil and gas sales, revenue and net income to the sale of a significant portion of the Company's domestic producing properties during fiscal 2000.

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 64.75% interest in southeastern Queensland's Comet Ridge coalbed methane project, also owns various exploration permits in Queensland. Domestically, Tipperary holds an interest in the 38,000-acre Hanna Draw coalbed methane exploration project in Wyoming and 50% of a 61,000-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(A) for the Transition Period Ended December 31, 2000, for meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management.