DENVER, Colorado --Tipperary Corporation (AMEX-TPY), an independent oil and gas company, today announced the completion and initial testing of the Tipperary Ninemile Federal 34-1 in Moffat County, Colorado. The discovery well was completed in the Almond formation at a depth of approximately 10,200 feet. Initial average flow rates were 2 million cubic feet per day of gas, 100 barrels per day of condensate and 250 barrels per day of water. The well owners are currently in discussions with pipeline companies regarding construction of a pipeline to deliver gas into the regional pipeline system.

Tipperary earlier reported it had assembled a 35,000-acre prospect area and subsequently sold a 60% interest to Elm Ridge Resources of Dallas, which serves as operator. Of the 35,000 acres, 12,000 acres were acquired through a farmout agreement from Western Gas Resources, Inc., which retained a 30% interest on farmout lands. Under continuous drilling provisions of the farmout agreement, Tipperary earns a 28% working interest in each earning well and its eight adjoining 160-acre drill sites within the farmout acreage. Once acreage is earned by drilling, each party pays its proportionate share of costs.

Tipperary and Elm Ridge are now preparing to drill additional wells in the near term to further test the Almond formation. Based upon its geologic interpretation, Tipperary management believes there may be potential for significant developmental drilling. The Ninemile prospect acreage is located immediately to the northwest of the Company's 65,000-acre Lay Creek coalbed methane project, which is in the early stages of pilot testing.

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 has producing operations in Queensland, Australia. Together with its affiliates, Tipperary holds a 73% interest in southeastern Queensland's Comet Ridge coalbed methane project and holds other exploration permits in Queensland totaling approximately 1.2 million acres. Domestically, Tipperary holds interests in several exploration projects in Colorado and Wyoming covering approximately 396,000 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 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.