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

Third quarter revenue was $881,000 compared with $878,000 in the same quarter a year ago. The Company reported a net loss of $1.59 million, or 6 cents per basic and diluted share, compared with a net loss of $1.45 million, or 6 cents per basic and diluted share, in the third quarter last year. Through nine months, revenue decreased to $2.52 million versus $5.71 million in the same period last year. During the nine-month period, Tipperary reported a net loss of $4.58 million, or 19 cents per basic and diluted share, compared with net income of $349,000, or 2 cents per basic share and 1 cent per diluted share, last year.

Total gas sold during the third quarter of 2001 was 689,000 Mcf compared with 478,000 Mcf a year ago. Production increases were primarily due to increased sales from the Comet Ridge coalbed methane project in Australia. Gas sales in Australia were 666,000 Mcf generating revenue of $748,000 compared with 444,000 Mcf and revenue of $535,000 in last yearıs third quarter.

Management attributed the decrease in revenue and net income in the nine-month period to the sale of a significant portion of the Company's domestic producing properties during fiscal 2000. As previously reported, the Company sold the properties in order to eliminate bank debt and to redirect its focus toward coalbed methane exploration and development. Net income for the nine-month period in 2000 included a gain of $4.8 million from the sale of these properties.

Oil sales volumes in the quarter were 2,600 barrels versus 8,000 barrels in the same period last year, a decline that was also due to the domestic property divestitures.

Through nine months, gas sales volumes were 1,780,000 Mcf compared with 1,722,000 Mcf in the prior year. Oil sales volumes were 9,700 barrels compared to 109,000 barrels in the same period last year. While domestic gas sales decreased, worldwide gas sales increased due to development drilling in Australia.

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 65% interest in southeastern Queensland's Comet Ridge coalbed methane project, also holds other exploration permits in Queensland totaling over 1.5 million acres. Domestically, Tipperary operates and holds a 50% interest in a coalbed methane exploration project with various leasehold interests that cover an area of approximately 74,000 acres in Moffat County, Colorado. Tipperary also owns prospects covering an additional 180,000 acres in Colorado and has an interest in the 38,000-acre Hanna Draw coalbed methane exploration project in Wyoming.

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.